Subdued demand recovery outlook after 2015 nadir
While global cement consumption in 2015 contracted, cement producers can look forward in 2016 to modest gains in demand, but the scenario remains mixed with higher demand unable to raise low capacity utilisation and cement pricing power. By John Fraser-Andrews, HSBC, UK.
The year 2015 looks set to mark the first reduction in global cement consumption since 1990 (see Table 1), with HSBC forecasting a five per cent contraction in China (which accounts for over 70 per cent of global demand) and just a two per cent global rise excluding China. The mid-single digit rise projected in the USA appears unable to offset contractions in Europe and negligible growth in emerging markets (EM).