US CEMENT MARKET
- In 2019, U.S. portland cement production increased by 2.5% to 86 million tons, and masonry cement production continued to remain steady at 2.4 million tons. Cement was produced at 96 plants in 34 States, and at 2 plants in Puerto Rico. U.S. cement production continued to be limited by closed or idle plants, underutilized capacity at others, production disruptions from plant upgrades, and relatively inexpensive imports
- Total shipments of portland and blended cement, including imports, in the United States and Puerto Rico in August 2020 were 9.6 million metric tons (Mt), a 7% decrease from shipments in August 2019. Shipments for the year through August totaled 67.4 Mt, a slight increase from those for the same period in 2019.
- August 2020 imports of cement and clinker totaled 1.7 Mt, a slight increase from imports in August 2019. Imports for the year through August totaled 10.9 Mt, essentially unchanged from those for the same period in 2019.
- Total shipments of Portland and blended cement, including imports, in the USA and Puerto Rico advanced 5.1 per cent YoY to 7.7Mt in March 2020
- The leading consuming states in the US were Texas, California, Florida, Georgia and North Carolina, with a combined share of 45 per cent of March shipments.
- In the first quarter of 2020, deliveries of Portland and blended cement in the US and Puerto Rico were up eight per cent to 21Mt when compared with the 1Q19.
- Masonry cement shipments totaled 207,000 metric tons in August 2020, a 5% decrease from those in August 2019. Shipments for the year through August totaled 1.6 Mt, a 2% decrease from those for the same period in 2019.
The global cement market was valued at USD xx Billion in 2019 and is projected to reach USD $xx Billion by 2025, exhibiting a CAGR of xx% during the forecast period.
Cement is an essential building block of development. Manufactured from limestone and other materials, it is often mixed into concrete to provide housing, roads, and pipes that supply water to communities.
The world consumes over 4 billion tons of cement annually. The cement sector has a large economic impact due to its long and diverse supply chain and it contributes to about 5.4 percent of global gross domestic product (GDP) and 7.7 percent of world employment.
While the US economic cycle is expected to reach maturity in 2020-21, its construction market is forecast to remain relatively robust. As a result, modest growth is projected for the cement sector in the short term.
In 2019, sales of cement increased slightly and were valued at $12.5 billion. Most cement sales were to make concrete, worth at least $65 billion. In 2019, it was estimated that 70% to 75% of sales were to ready-mixed concrete producers, 10% to concrete product manufacturers, 8% to 10% to contractors, and 5% to 12% to other customer types.
Texas, California, Missouri, Florida, Alabama, Michigan, and Pennsylvania were the seven leading cement-producing States and accounted for nearly 60% of U.S. production.
One cement plant was idled in April because of decreased demand resulting from restrictions put in place to mitigate the spread of the COVID-19 pandemic. However, the U.S. cement industry has shown no prolonged or widespread negative effects from the pandemic.
For January through August, shipments of portland and masonry cement increased slightly and decreased by 2%, respectively. Clinker production was essentially unchanged for January through August compared with that in the same period of 2019.
The United States economy and construction market are expected to remain relatively strong during 2020-21. However, the economy is entering a mature stage in the business cycle with slower growth rates. During the early stages of recovery, fueled by the release of pent-up demand characterized the economy, Hence, slightly moderate growth is anticipated for 2020 in the short term.
This implies that the US cement market is likely to grow from 2021, the average annual growth rate in cement consumption exceeding with moderating economic expansion. Cement demand in the US is expected to be moderate in 2020. As economic growth inches down in 2021, slightly higher advances are anticipated for construction activity and cement consumption.
The US is the key player in the North American cement market. Demand for cement in the US is on the rise. However, a major portion of increased sales in the US is being fulfilled through imports. The country needs to expand its domestic production facilities to take advantage of future demand growth.
The Cement Manufacturing industry is expected to rebound as the immediate effects of the coronavirus pandemic subsides. As the overall economy recovers, construction activity is expected to grow, in turn fueling increased demand for cement. Greater government funding for highways, rising value of utilities construction and strong demand from nonresidential and commercial construction markets are forecast to drive renewed growth.
The majority of plants are privately owned and operated, and while the top 10 players account for about 45 percent of global capacity, the industry overall is quite fragmented. As global demand has stagnated over the last decade, historical capacity expansion has given way to regional overcapacity with a global average utilization of about 70 percent.
Another challenge stems from the intensive capital investment required, and many cement companies struggle to generate returns beyond their investment.
- Lafarge North America
- Essroc Cement Corp.
- Holcim (US)
- Buzzi Unicem USA
- Titan America
- Calportland Company
- Texas Industries
- Nichiha USA
- Eagle Materials