2011 global consumption reaches 3.6bnt

2011 global consumption reaches 3.6bnt
22 February 2012

Global cement consumption amounted to around 3.6bn tones in 2011 of which China accounts for approximately 2.0bn and India approximately 0.2bnt, according to FLSmidth in its latest annual report.

The Danish engineering group expects annual growth in global cement consumption is expected to be 3-4% in the coming years. Capacity utilisation on a global scale. meanwhile, remains relatively subdued around 75% but is expected to increase in the coming years.

The global market for contracted new kiln capacity (excl. China) amounted to approximately 46Mta in 2011 (2010: 65Mta), of which FLSmidth achieved a market share of 31% (2010: 36%). The lower market share is due to the weak markets in two of FLSmidth’s traditional strongholds: India and North Africa.

“Demand for equipment and services in the cement industry was relatively weak in 2011 due to the hard-pressed economies in the Western World, unrest in North Africa and a temporary growth pause in India. On the other hand, a positive trend was seen in demand from particularly Russia, Central Africa and South America," the company said in a statement.

In 2012, FLSmidth says the overall cement market is expected to grow slightly compared to 2011. With respect to investment in new capacity, it states that "2012 is expected to be a mixed picture. The trends from 2011 with relatively strong markets in, for example, Russia, parts of South America and Indonesia are expected to continue, while India is only expected to make slow recovery. Parts of the Middle East and Africa are expected to show good signs in 2012."

Overall, 2012 is expected to see global demand for new cement kiln capacity (exclusive of China) at 50-60Mt (2011: 46Mta), according to FLSmidth.

Published under Cement News

Tagged Under: New project FLSmidth