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Overview of global cement price 2012

Overview of cement price in the world 2012

Several days ago, I posted that the global cement output is decreasing in the first half of 2012. So how about the price trend of cement worldwide? Is it increasing or not?

Information from different sources shows the prices of cement varies worldwide. For instance, prices of cement in South Africa had been retailing at US $186-230/ton in March of 2012. Due to an acute shortage of cement in Ghana, cement price has rapidly risen over the latest 12 months by 25% in the capital Accra and by up to 35% in rural areas.

Compared with the expensive price in Africa, cement price in Asia except China is more or less similar to that of United States. e.g. the price in Pakistan is US $96/ton, while it is US$101/ton in US.

In the biggest construction market China, cement price has been decreasing in the first two quarters of 2012, now varying at US $55/ton and still much cheaper than that in other places.

The price above is for Portland cement, and conversion of US dollar from local currencies is based on the rates at time of publication.

There is a possibility that cement price will increase soon because of increased public sector spending in the coming fiscal year that normally starts on 1 July 2012, in the meanwhile, the shrank production of cement in 2012 may account for the risen price in the coming months as well.

The worldwide cement output is decreasing in 2012

As reported by China Daily, the official Chinese newspaper in English, China’s cement output growth drops sharply in the first five months. The output grew 5 percent from a year earlier to 793.98 million tons; however, the growth rate represented a sharp decrease of 14.3 percentage points from the same period of last year, showed by the National Development and Research Commission.

The reason accounting for the dropped output of cement is the economic slumps both at home and abroad, which dampened market demands. The strict regulation and control on domestic real estate by the government further reduced the demand of building materials as well. The latest news of Sany company (Sany Group loses 30% of workforce: report) also confirmed the harsh situation of construction industry in China.

Construction everywhere in China.

Since China is a fast growing market of construction industry, the cement output decrease in China may also indicates the cement drop of the whole world. Because of the struggling economy worldwide and the increasing demand of less CO2 emission of cement, scientists of cement industry should spare no effort to focus on the research of cementitious materials, such as slag, fly ash and limestone blended cements, which have economic and environment benefits.