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Cement consumption in 2022 revised downwards
By: CW Group
2021 was marked by economic recovery after the Covid slump in 2020, which was also reflected in terms of cement consumption. In the 2H2021 update, CW Research estimated that global cement consumption would increase by 2 percent in 2022. However, in the 1H2022 update of the GCVFR, this forecast was revised downward to just over 1 percent.
Cement consumption growth prospects for 2026 revised downwards
Global cement consumption is projected to increase by an annual percentage of around 2 percent from 2021 to 2026, while global ex-China consumption is likely to grow by almost 4 percent.
CW Research has downgraded its outlook for 2026, as the Russia-Ukraine conflict has caused global energy prices to skyrocket adding to existing supply chain disruptions. Additionally, high energy prices are taking a toll on cement manufacturers, resulting in kilns being shut down and adding to already exorbitant freight rates and logistical costs.
Cement consumption in the US to grow this year
CW Research has revised downwards its 1H2022 forecast for the United States, as energy costs, shipping, and inflation rise. In 2022 consumption is expected to increase by more than 1 percent year-on-year. Meanwhile, in the next five years, cement consumption in the country is projected to exhibit growth at an average of more than 2 percent annually.
Cement consumption in Canada in 2022 is expected to grow by almost 3 percent year-on-year, as big investments are planned in the construction sector across the country, both from the public and private sectors. By 2026, consumption is forecast to have increased by almost 2 percent annually.
Consumption in Latin America to grow despite challenging inflation
In 2022, Latin American cement consumption is projected to increase by almost 3 percent, remaining essentially flat from CW Research's 2H2021 forecast.
The increase in the price of cementitious products, caused by rising energy prices and inflation across major regional countries, poses the main risks to cement consumption growth this year.