ONESTONE CONSULTING S.L.

The global cement capacity development

On a global level significant cement overcapacity and low utilization rates are now an issue, resulting in a lack of investment in new capacity. This article provides an overview about the latest trends in cement capacities and the utilization rates of major producers/countries and how this affects newly contracted capacity.

1 Introduction

Cement capacities are growing faster than demand [1]. Figure 1 shows the global development since 2001. Up to 2007 cement demand was growing faster than capacity, because the demand growth was higher than expected and new capacity needed at least two years to become operational. With the delay in investment decisions, newly contracted capacity peaked when the global financial crisis started and the demand in developed markets in the Americas and Europe rapidly declined. In China newly contracted capacity peaked in 2010. In Africa, India and Brazil huge capacity expansions started...

Related articles:

Issue 10/2015 ONESTONE CONSULTING S.L.

Recovery of India’s cement industry

In recent years India’s cement demand has been much weaker than expected. However the signs are now indicating a recovery with a higher demand, higher production and higher utilization rates of the installed capacity. In this market review...

more
Issue 1-2/2015 ONESTONE CONSULTING S.L.

Lafarge-Holcim’s cement rivals in Africa

Once Lafarge-Holcim have merged they will be the leading cement producer in Africa with a capacity of about 53 million tons per year (Mta). However, there are a number of potential rivals...

more
Issue 7-8/2013

Cement markets in the BRIC countries and other emerging countries up to 2030

At the moment, all eyes in the cement industry are directed at the emerging countries, because these are practically the only markets showing a...

more
Issue 9/2017 ONESTONE CONSULTING S.L.

Cutting excess capacity in China

China’s cement industry is at a crossroads. The gap between cement demand and supply has widened and production, sales, prices and profits have declined. However, cement producers’ cost control and ...

more
Issue 12/2015 ONESTONE CONSULTING S.L.

Outlook of the white cement industry

The market for white cement is growing fast, faster than the market for grey cement. However, white cement is less of a commodity and the market characteristics are not only very specific but also very different to grey cement. ...

more