Cement and Concrete Cement and concrete are an essential material for construction industry as they are used to make different structures like buildings, dams and others. Usually the words Cement and concrete are used in place of each other but there is a little bit of difference between them as cement is an ingredient to concrete, which further requires gravels, sand and water to be made but they are considered as same industry because it’s the cement that constitutes as the main ingredient. The process is that; sand, gravels and Portland cement are mixed with the help of water that makes a paste, which is applied at the area where required and it gets harder as the time passes and strongly holds the surface where applied. The proportion of the materials used to make concrete is of utmost importance because it will determine that how hard and strong will be after getting dry. Uses and Application of Concrete and Cement:
There are several applications where cement and concrete are applies some of which are:
Grades and Types of Cement:
- General Construction.
- Structural binding
- They are also used to make beams and water reserving structures.
- Manufacturing of blocks and bricks
- Plastering and Mortar making
There are different kinds of grades of cement that are used in different applications; there is a three question matrix that will help you to decide which kind of cement grade should be used:
- What structure has to be made?
- Where it has to be made?
- How will it be used after construction?
These three questions will help you to draw conclusion that which type of cement is to be used and to get answer of these questions you check the technical properties of all the grades of cement because a kind of cement that is used in domestic purposes like house building cannot be used for marine structures because the purpose of that structure is totally different. Things that should be considered are:
Cement and Concrete Industry Analysis:
- Chemical composition
- Compression strength
- Reliability of the brand
The industry has shown a slowdown since 2015, as many countries have slowed down their developmental projects but still there is a lot more come, as many emerging markets are now investing in their infrastructure which is creating an opportunity for the cement and concrete producers to enter or further penetrate into those countries and get their share out of it. The market is divided into different regions because different regions have different dynamics that provide diversified ooprtunities to the market players. Asia Pacific region:
APAC of Asia-Pacific region is expected to by the main region that will drive the growth of cement and concrete sector it includes countries like India, China, Malaysia, Indonesia, and Vietnam which are providing opportunity for this sector. It is estimated that more than 60% of the world’s cement was supplied to this region which makes it clear that there are developmental projects going on in this region. One of the positive factors is the increase in awareness of the benefits of concrete roads and prefabricated structures among the producers and users. European Region:
The cement and concrete sector is a slowed demand in the European region as the number of new developmental projects have decreased, but there is still a window of opportunity over there as different projects that were completed in the past will now be renovated or will be expanded because of rise in the population of the region. Middle East and African Region:
The Middle Eastern and African region has many under developed countries due to which still there are many countries who are building their basic infrastructure like roads and rails. The FIFA world cup 2022 will be held in Qatar which has increased the demand for cement and concrete as stadiums will be built for the grand event. Countries like Saudi Arabia are also working different projects like expansion of the Muslim holy sites, so this region will show a moderate growth in the coming years. American Region:
American region will show similar trend to the European region as there will be more projects related to renovation and expansion of the projects that have already been completed years ago. These expansion projects will take place because the expected rise in population in the coming years. The demand for prefabricated construction is also expected to grow. So, the regions that are already developed will still not close for cement and concrete producers as the rise in population will drive new projects that will ultimately benefit the sector. Key Market Players:
Cement market is a fragmented market where many producers compete each other in different markets to get the business but still there are some companies that operate on global level and produce large amount of cement and concrete. LafargeHolcim:
LafargeHolcim is a merger of two companies Lafarge based in France and Holcim from Switzerland. The merger of these companies has resulted as the largest manufacturer of cement, concrete and construction aggregates. The company has over 160 plants and claims to have a production capacity of 368.5 Million tons per year, having presence in 90 countries around the globe. Anhui Conch:
Anhui Conch is the largest cement manufacturer in China having large scale production capacity. Head quartered in Wahu, Anhui, China it has been a part of different developmental projects in South East Asian countries like Indonesia, Mayanmar, Laos and Combodia. Anhui Conch is specialized in product line of cement and clinker. China National Building Materials:
It is another big producer of Cement from China, but the company has diversified into other building material products also. It is a public company having large scale production and having a workforce of around 100,000 people. Heidelberg Cement:
It is one of the largest producers of cement and aggregates having large production capacity with help its 129 plants and work force of sixty three thousand people. Headquartered in Heidelberg, Germany the company has presence in 60 countries and has created its name on high quality cement that is used in different developmental projects. The company has rich experience of centuries as in the year 1896 Heidelberg cement produced 80,000 tons of cement. Cemex:
It is a Mexican company that is said to be the second largest building materials producing company after LafargeHolcim. Having an experience of 111 years and head quartered in Monterry, Mexico it distributes cement and aggregates in fifty countries with the help its sixty six cement producing plants, eighty marine terminals and more than four hundred distribution centers. Global Trade Statistics:
Cement is traded under the HS-code 2523, and with the help of trade statistics suppliers can identify that which markets should be targeted so that they can generate business from there because the competition in cement and concrete sector is very intense as in every developmental project local and foreign compete with each other to get the business contracts. Imprort Data:
The top five countries that are importing large amount cement are:
- United States of America
- Sri Lanka
The top five countries that are exporting cement in other nations are:
These trade statistics suggest that there are new markets that are opening for the cement producers and creating an opportunity for them to enter over there at earlier stages to gain market share because at latter stages it would require more resources to do the same. Future of the Industry:
The market for cement industry is expected to grow at a health CAGR of 9% for the upcoming three years. The established names of the industry are expected to take good business from the global market but the countries like Ghana who are investing in development of infrastructure to boost their economies create huge opportunities. The turmoil in the Middle East is also expected to slow down and the rebuilding of infrastructure would create demand for cement and concrete which can provide boost to the cement sector. The basic driving factor that is creating compulsion for the governments to renovate, expand and develop infrastructure is rise in the population as total population of the world is rising and despite of its adversities there are certain sectors who can benefit from it and cement and concrete industry will be among those. There are less chances of any ground breaking technology in the cement sector that will change the dynamics rather it is expected to be stable on the technology side, one of the main reason is the associated costs of shifting the technology. Export Hub provides great opportunities to the exporters of cement and concrete as now many huge projects are advertised on-line and procurement methods have now changed as deals worth millions of dollars take place through b2b portals. So, export hub will help its premium members to generate business deals using its vast data of cement and concrete industry.