Global cement demand to reach 3.5 billion tonnes in 2013

Global cement demand is forecast to rise +4.1% per year to 3.5 billion tonnes, or US$ 246 billion, in 2013, according to the latest report by US-based research company The Freedonia Group.

The report, World Cement, said the rise will be driven by rising investments in infrastructure among developing countries, driven by economic growth and increasing per capita income levels.

This will be coupled to renewed demand for cement in developed countries, particularly the US, Western Europe and Japan.

According to the report, the rise in demand through 2013 will "lag the robust advances seen from 2003 to 2008", with many of the fastest-growing markets for cement during this period, including China, Russia and Brazil, experiencing "a substantial deceleration in cement demand going forward".

The current global economic recession has also had an impact on demand, with a notable slowdown in construction activity, said the report, and any increase in construction spending and cement sales will rise at a more moderate pace through 2013.

However, many countries will continue to see "strong gains" in demand, particularly in the Asia/Pacific region. China, which accounts for nearly half of world cement demand, will see a slowing rate of growth through 2013 as construction spending decelerates, but gains will remain above the global average.

India, the world's second largest cement market, will also see "some of the most rapid advances of any country in the world". Other fast-growing markets in the region include the Philippines, Taiwan and Vietnam, all with growth rates exceeding +6% per year.

In the developing countries of Latin America, Eastern Europe, Africa and the Middle East, however, demand will "slow considerably".

In the US, Western Europe and Japan, increases in demand will "lag the average global pace of growth", said the report, although improving substantially from their 2003-2008 performance.

In the US, cement demand plummeted following the residential building slump and economic recession from 2006 to 2008, but a solid rebound is expected through 2013.

In Western Europe, improvement in construction activity will fuel a turnaround in the region's three largest cement markets, Spain, Italy and Germany. Similarly, a modest rise in construction spending in Japan will drive increases in cement consumption after a long period of decline.