Global aggregates demand to slow

The global market for construction aggregates is forecast to increase +5.2% per year between 2010 and 2015 to 48.3 billion tonnes, representing a slowdown in comparison to the +6.5% annual growth rate recorded between 2005 and 2010.

According to figures from research company Freedonia, weaker demand from the Asia Pacific market will offset forecast increases in demand for construction aggregates in North America and Western Europe.

Demand in the Asia Pacific is expected to grow by +5.7% per year between 2010 and 2015, compared to growth of +9.1% per year in the five years to 2010, while demand in North America is expected to grow at a rate of +4.3% per year to 2015, compared to a contraction of -1.7% per year from 2005 to 2010.

Similarly, in Western Europe, demand for construction aggregates is forecast to increase +3% annually to 2015, in contrast to reductions of -2.1% per year between 2005 and 2010. In the rest of the world, demand is expected to moderate to +5% per year to 2015, compared to +6.6% per year between 2005 and 2010.

"Demand for construction aggregates will still post solid gains from 2010 to 2015. The Asia Pacific region will register the largest increases in product sales, as construction activity will rise rapidly, particularly in China and India. China alone will account for half of all new aggregates demand worldwide during the 2010 to 2015 period," Freedonia said.

Recycling

The company also forecast that demand for crushed stone, sand and gravel products would see growth rates of just over +5% per year through to 2015. Recycled products are also expected to gain in popularity as a result of environmental regulations and the depletion of natural reserves.

Freedonia forecast that sales of recycled, secondary and other aggregates would climb at +7.1% per year during the 2010 to 2015 period, but would to play a relatively small role in world markets due to quality concerns and limitations in the availability of feed material.