World cement consumption is expected to grow 5.3 percent this year, despite economic distress that continues to grip developed countries, according to a recent PCA Market Intelligence report.  This will be followed by gains of 5.8 percent and 5.1 percent in 2011 and 2012, respectively. 

Growth in cement consumption among emerging and transitional economies is projected to more than offset declines among the developed economies. China and India account for 60 percent of world cement consumption, and PCA expects them to achieve a roughly nine percent growth in 2010 – masking the harsh declines in consumption expected for many of the world’s major cement markets. 

World cement consumption declined an estimated 2.2 percent in 2009 from 2.8 billion metric tons in 2008 to 2.7 billion metric tons. The decline reflected harsh market conditions among developed countries, which were characterized by a severe housing correction, weak nonresidential construction fundamentals, and varying degrees of success in fiscal stimulus programs. 

PCA’s scenario of slow recovery among developed economies and moderate-to-strong growth among emerging economies suggests world cement consumption will reach 2.9 billion metric tons in 2010, 3.1 billion metric tons in 2011, and 3.2 billion metric tons in 2012, compared with an estimated 2.7 billion metric tons in 2009. PCA’s world cement consumption estimates are based on the expectation of modest growth in world real GDP during 2010-2012.