Global demand for hydraulic cement is forecast to rise 4.1% per year to 3.5 billion metric tons in 2013, valued at $246 billion. These and other trends are presented in World Cement, a new study from The Freedonia Group.

The gains will be fueled by rising investments in infrastructure among the developing countries, driven by economic growth and increasing per capita income levels. Additionally, an improvement in the market for cement in developed areas, particularly the United States but also Western Europe and Japan, also will benefit world cement demand.

However, gains in demand through 2013 will lag the robust advances seen from 2003 to 2008. Many of the fastest-growing markets for cement during this period, including China, Russia, Brazil and other large consumers, will experience a substantial deceleration in cement demand. The global economic recession, which began in 2008 led to a notable slowdown in construction activity, and increases in construction spending and cement sales will rise at a more moderate pace through 2013.

Nonetheless, a number of countries will continue to see strong gains in demand for cement, particularly in the Asia/Pacific region. China, which accounts for nearly half of world cement demand, will see a slowing rate of growth through 2013 as construction spending decelerates, but gains will remain above the global average. India, the world’s second largest cement market, will see some of the most rapid advances of any country in the world. Other fast-growing markets for cement in the region will include the Philippines, Taiwan and Vietnam, all with growth rates exceeding 6% per year. In the developing nations of Latin America, Eastern Europe and the Africa/Mideast region, however, advances in cement demand will slow considerably from the robust gains seen during the 2003-2008 period.

Increases in cement demand in the developed areas of the United States, Western Europe and Japan will lag the average global pace of growth, although improving substantially from their 2003-2008 performance. In the United States, cement demand plummeted in the wake of a residential building slump and economic recession from 2006 to 2008, but a solid rebound is expected through 2013. In Western Europe, improvement in construction activity will fuel a turnaround in the region’s three largest cement markets, Spain, Italy and Germany. Similarly, a modest rise in construction spending in Japan will drive increases in cement consumption after a long period of decline.