Australia's changing dynamics

Published 27 May 2014

As rising energy costs and the introduction of the carbon tax impose plant rationalisations, Australian cement producers look overseas for their clinker supply. While the country’s cement consumption shows a strong upside trend, market dynamics are expected to change. By Marilyn Gardner, M Gardner Consultancy, Australia.

Australia’s extensive geography and its high immigration level are forecast to sustain

a long-term demand for new housing and infrastructure

Australia survived the turmoil of the global financial crisis largely due to mining-related investment and the strong demand for resources from China and India. However, Australian consumers have remained cautious and investment has been subdued due to concerns regarding the recovery in the US economy, stability in the eurozone and sustained growth in China. This trend may now be changing.
Lower interest rates and financial incentives introduced in 2013 are starting to show signs of success with GDP growth forecast to rise to 2.75 per cent this financial year with a further increase in FY15.

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