Worldwide Cement Production from 2015 to 2019
China produces the most cement globally by a large margin, at an estimated 2.2 billion metric tons in 2019, followed by India at 320 million metric tons in the same year.
China currently produces over half of the world’s cement. Global cement production is expected to increase from 3.27 billion metric tons in 2010 to 4.83 billion metric tons in 2030. In China, the cement production in 2018 amounted to some 2.17 million metric tons.
Cement is used to bind material together and is categorized as either non-hydraulic or hydraulic. Hydraulic cements are composed of silicates and oxides that can set and harden even when exposed to water. Cement today is mostly used as stucco for buildings in wet climates, as mortar for applications near sea water, and as part of developments for strong concretes.
Cement consumption in the United States decreased after the 2008 economic downturn, down to 71.5 million metric tons in 2009.
Since then however, consumption has gradually increased to an estimated 102 million metric tons in 2019. In the U.S., most cement is consumed between May and October.
In Europe, CRH, a top cement manufacturer headquartered in Ireland, generated 30.21 billion euros in revenues in 2018.
Cement is counted among the key building materials both in the residential and nonresidential sector. In 2018, China’s CNBM (China National Building Material Co., Ltd.) nudged past Dublin-based cement producer CRH plc (Cement Roadstone Holdings) to the top of the list of leading cement manufacturers worldwide, reporting 2018 revenue of around 26.8 billion euros (or around 30 billion U.S. dollars).
Cement is mostly used for the production of concrete: in the United States, some 70 percent of cement sales went to producers of ready-mixed concrete and around 10 percent of sales went to concrete product manufacturers. In 2018, the U.S. production volume of cement came to around 88.5 million metric tons. That year, about 87.8 million metric tons of Portland and masonry cement was produced here.
The cement industry in China is the largest in the world, producing 2462 Mt in 2014, an annual increase of 2.6%. China roughly yields 60% of global production of cement. In 2017 China produced 2,400,000 metric tons of cement where as other countries produce cement about 1,728,300 metric tons of cement.
During the first five months in 2020, China produced about 768.8 million metric tons of cement, around 8.2 percent lower compared with the same period last year.
China-The cement leader
As a common construction material that is used to bind other materials together, cement belongs to the essential materials that make modern life possible. Few construction projects can take place without the use of cement. Cement is especially important for fast-growing economies. Since 2000, China’s cement production had experienced a remarkable growth. In 2010, the second-largest economy in the world accounted for more than half of global cement production. China has by far the largest cement industry in the world.
China-The driving forces
The explosive growth in cement production correlates with China’s economic expansion. While industrialization and urbanization advanced in the country, the demand of cement rose sharply. According to the National Bureau of Statistics of China, the net output of the construction industry grew constantly in the previous decade. Houses, roads and bridges had been built here with phenomenal speed over the past three decades.
China-Infrastructure is the key
Since extensive roads and railways are indispensable for a modern economy, installing and upgrading physical infrastructure were intensive in China. Over the last decade, the total length of public roads in China was expanding gradually. A major benefit, particularly in rural areas, has been the modernization of domestic transportation infrastructure. To counteract sluggish economic growth, Chinese local and central government also boosted public investment in infrastructure.
India is the second largest cement producer in the world and accounted for over 8 per cent of the global installed capacity as of 2019. Cement production reached 334.48 million tonnes (MT) in FY20. The cement production capacity is estimated to touch 550 MT by 2020. Of the total capacity, 98 per cent lies with the private sector and the rest with public sector. The top 20 companies account for around 70 per cent of the total cement production in India.
The demand of cement industry is expected to achieve 550-600 MT per annum (MTPA) constantly by 2025 because of the expanding requests of different divisions, i.e., housing, commercial construction and industrial construction.
A total of 210 large cement plants account for a combined installed capacity of 410 MT in the country, whereas, 350 mini cement plants make up for the rest. Of the total 210 large cement plants in India, 77 are in the states of Andhra Pradesh, Rajasthan and Tamil Nadu. Sales of cement in India stood at Rs 58,407 crore (US$ 8.29 billion) in 9MFY20. India’s export of cement, clinker and asbestos increased at a CAGR of 6.44 per cent between FY16-FY19. In FY20 (till January 2020), it reached US$ 1.66 billion. To enhance the source of capital for infrastructure financing, Credit Guarantee Enhancement Corporation, for which regulations have been notified by the RBI, will be set up in FY20.
According to the data released by Department for Promotion of Industry and Internal Trade (DPIIT), cement and gypsum products attracted Foreign Direct Investment (FDI) worth US$ 5.28 billion between April 2000 and March 2020.
The Government of India is strongly focused on infrastructure development to boost economic growth and is aiming for 100 smart cities. The Government also intends to expand the capacity of railways and the facilities for handling and storage to ease the transportation of cement and reduce transportation cost. These measures would lead to an increased construction activity, thereby boosting cement demand. As per Union Budget 2019-20, the Government expected to upgrade 1,25,000 kms of road length over the next five years, which would boost the demand for cement.
The Vietnam National Cement Corporation (VICEM) has reported that Vietnamese producers exported 13.6Mt of cement between 1 January 2020 and 31 May 2020, down by 1.4% year-on-year from 13.8Mt in the corresponding five months of 2019.
Producers exported 7.07Mt of cement to China, up by 26% from 9.55Mt, 2.08Mt to the Philippines, down by 29% from 2.93Mt, and 1.36Mt to Bangladesh, down by 9.9% from 1.51Mt.
The total value of exported cement fell by 14% to US$505m from US$590m.
According to the market research, compared to China or other developed countries, low human resources cost is one of advantage of Vietnam cement industry. Besides, Vietnam possesses rich ore resources, which are raw materials of cement. The production cost of cement is mainly influenced by coal price.
Construction of infrastructure and booming property industry contributed to increasing domestic consumption of cement in Vietnam in recent years. Several large infrastructure projects are also underway. However, urbanization rate of Vietnam is still very low, only approximately 38% in 2018, which means the consumption of cement is not currently at the peak.
The cement industry in the United States produced 82.8 million tonnes (81,500,000 long tons; 91,300,000 short tons) of cement in 2015, worth US$9.8 billion, and was used to manufacture concrete worth about US$50 billion. The US was the world’s third-largest producer of cement, after China and India (it’s 4th rank now). The US cement industry includes 99 cement mills in 34 states, plus two plants in Puerto Rico. The industry directly employed 10,000 workers in 2015. Ten percent of the cement used in the United States in 2015 was imported.
The types and amounts of cement produced in 2015 were:
- Portland cement 80.4 million tons
- Masonry cement 2.4 million tons
- Other hydraulic cement 0.6 million tons
Cement production is predominantly portland cement, which is mostly used in concrete. Cement for concrete is an essential material for construction, and demand is a function of construction spending. Single-family residential construction is considered only moderately cement-intensive; multifamily residential somewhat more intensive. Nonresidential construction and government construction projects are considered the most cement-intensive.
In 2013, 70.8 percent of portland cement was sold as ready-mix concrete, such as is delivered in cement-mixer trucks. 11.5 percent was sold dry to contractors and construction materials stores; 11.3 percent was sold to manufacturers of concrete products; 4.6 percent was sold for oil and gas wells, and 1.8 percent was sold to government agencies and others.
Because cement is a bulk commodity, transportation can be a significant part of the cost. To minimize transportation costs, cement plants are ideally located close to the market, with access to efficient transportation such as ship or railroad. Most cement plants are located close to the limestone deposits.
Thirty-four states have cement manufacturing plants. In 2013, the five leading cement-producing states, in descending order, were: Texas, California, Missouri, Florida, and Alabama. Together, the five accounted for almost half of US cement production. The list of top five cement-consuming states is similar: Texas, California, Florida, Ohio and Pennsylvania.
In 2015, about 10 percent of US cement consumption came from imports. The largest sources of US cement imports were Canada and Greece.
In 2013, the top producers of portland cement in the US were:
1 – CEMEX
2 – Holcim (now LafargeHolcim)
3 – Lehigh Hanson Inc.
4 – Buzzi Unicem
5 – Ash Grove Cement Company (to be acquired by CRH plc in early 2018)
6 – Lafarge North America (merged with Holcim in 2015)
7 – Texas Industries Inc
8 – Eagle Minerals Inc.
9 – Essroc Cement Corp.
10 – St. Marys Cement Group
In 2013, the top 5 companies produced 54 percent of US portland cement; the top 10 companies produced 78 percent.
The cement industry in Egypt has remained stable over the last several years although data indicates that there may be an increase in production over time. In 2018, Egypt’s cement production was considerably higher than expected at som 81 million metric tons.
Global cement production
Cement is a milled mineral powder commonly composed of limestone, clay and marl. It is used as a binding agent as well as for construction. It is one of the most widely used construction materials across the planet. The worldwide production of cement is anticipated to continue growing. Globally China, India, and Vietnam are the top three cement producers as of 2019. Similarly, China, India and the U.S. are the top three countries for clinker capacity worldwide.
Egyptian cement industry
The Egyptian cement industry is dominated by some companies more than others. In 2012, the top cement company in Egypt was Suez Cement Group, followed by Lafarge Cement Egypt. Egypt is among the countries with the highest demand for cement worldwide as of 2018, and that demand is expected to increase through 2020.
Suez Cement has recorded a loss of US$18.0m in the first three months of 2020, compared to a profit of US$11.0m in the first three months of 2019. Sales fell by 27% year-on-year to US$80.6m from US$110m in 2019.
Domestic demand in relation to Egypt’s production overcapacity fell in March 2020 due to the coronavirus outbreak. Daily News Egypt has reported that the second quarter 2020 results will carry greater losses for Suez Cement due to corona virus lock-down measures and seasonal factors such as Ramadan, with cement volumes down by 27% year-on-year in May 2020.
Between the years 2011 and 2013 Indonesia’s cement industry seemed to be a goldmine. Double-digit growth in annual domestic cement sales – supported by strong growth in the country’s property sector, particularly on the islands of Java and Sumatra – attracted new foreign investment in cement production facilities, while established cement producers in the Archipelago invested in expansion of their cement production facilities.
Once these foreign and domestic investments had materialized (in the 2014-2017 period), it resulted in very strong growth of Indonesia’s national cement production capacity. But, problematically, growth in domestic demand for cement suddenly dropped heavily as the property sector cooled significantly. Yes, domestic cement sales continued to grow after 2013, but the annual growth pace slowed from double-digits to very low single digits.
The result was a rapidly rising excess of the cement supply (or glut) that put great pressure on cement prices.
And considering cement exports from Indonesia are still very limited, albeit growing, the cement plants of cement producers across Indonesia cannot operate at full capacity, hence the national capacity utilization rate has declined drastically in the 2014-2017 period.
Cement exports could be a solution to offset the negative impact of very modestly growing cement demand at home. However, it is difficult for Indonesian cement players to compete with their stronger (more competitive) counterparts in China, Thailand and Vietnam on the global market.
Semen Indonesia is the country’s largest cement maker with a production capacity of about 38.2 million tons a year, while Holcim is the third with a production capacity of 14.8 million tons a year.
The US$917 million acquisition thus expands Semen Indonesia’s installed production capacity to more than 50 million tons annually and increases its market share to 57 percent from previously 39 percent.
The takeover of an 80 percent share in Holcim from Swiss multinational company LafargeHolcim Ltd. has allowed Semen Indonesia to benefit from Holcim’s 30 ready-mix facilities and distribution terminals in Sumatra and Kalimantan to boost its market share outside Java.
Indonesia has the ‘fortune’ to be only the second largest producer in South-East Asia, after Vietnam. China, the world’s largest producer, is not too far away either. As can be seen above this can be a mixed blessing for local producers as the market changes.
Overcapacity abounds, a major multinational has moved out, a local firm has consolidated the market as a result and Chinese influence grows steadily. Indonesia could well be an example of things to come for other markets.
The Islamic Republic of Iran is located in the west of Asia and shares borders with Iraq, Turkey, Armenia, Azerbaijan, Turkmenistan, Afghanistan and Pakistan. It covers a total of 1.65 million km2, has 82.8 million inhabitants and has the eighth-largest cement sector in the world, according to active capacity listed in the Global Cement Directory 2017.
It was previously as high as fourth-largest in 2014/2015, and is aiming to improve its ranking in the near future.
The Iranian cement industry has 79 integrated cement plants.i Of these, 10 are under construction or planned, leaving 69 that are currently producing cement. These share 85.0Mt/yr of capacity. Of this, around 1.8Mt/yr (2.1%) is white cement capacity.
The recent explosion in Iranian cement capacity translates into a fairly modern cement production infrastructure, with around 65% of the country’s cement kilns commissioned since 2000.1
The vast majority of cement plants in Iran are domestically-owned, as is typical in the region. However, unlike in some other countries, foreign investment has been further limited in the past due to US, EU and UN sanctions. A substantial proportion of the cement sector is ultimately controlled by the government. No major multinational producers or regional players are present in the market.
An additional >10.4Mt/yr of cement capacity is listed as non-operational, due to being either mothballed, closed, under construction or at the planning stage.
The largest Iranian cement producers are:
Fars & Khuzestan Cement: Founded in 1950 as Fars Cement Company, Fars & Khusestan Cement is the largest producer of cement operating in the Iranian market. It has grown substantially from a capacity of just 200t/day in 1955, when production began. In 2017 the company has 18 subsidiaries and, together with its partner Ta’min Cement Investment Company, which has a further five cement plants, it operates nearly 32% of Iranian cement production capacity.
CIDCO: Cement Investment and Development Company (CIDCO) controls the cement sector assets held by Bank Melli Iran Investment. It has 8.0Mt/yr of capacity across five integrated plants.
Ghadir Investment: Founded in 1992, Ghadir Investment is a publicly-listed company engaged in a variety of industrial projects, including oil and gas, financial activities and cement production. Its cement operations began in 2005, at the peak of Iranian cement plant construction. Today it is the third-largest producer of cement in Iran, operating a total of 7.3Mt/yr via five cement subsidiaries. This is enough to give the company around 8.5% of the national market. It is also building a further 1.2Mt/yr of capacity at Mondashti.
Tehran Cement: Founded in 1954, Tehran Cement produced its first cement, from a 300t/day (0.1Mt/yr) kiln, in 1957. It launched numerous other lines over the next 30 years, bringing capacity to 3.1Mt/yr by 1987. In 2007 it replaced three of its older lines with a single line of 3400t/day(1.1Mt/yr), bringing its capacity to 4Mt/yr. Further capacity has since come online, bringing capacity up to 6.1Mt/yr. This gives it around 7% of Iranian capacity.
A total of 6.7 million tons of cement and 10.8 million tons of clinker were exported during March 2019-20 mainly to Iraq, Kuwait, China, Bangladesh, India, the littoral states of Persian Gulf and Central Asian countries
The Russian cement industry is actively developing by increasing the production and consumption of cement, in combination with a large-scale modernization. Producers have the necessary reserve capacity to meet the demands of the building industry. By 2020, the country will build new production lines for the production of cement in a total volume of 30-40 Mt to meet the growing demand of the building industry for cement.
The modern Russian cement industry currently includes 58 cement plants with a total combined capacity of more than 95 Mt. The largest cement companies in the Russian market are the “Euro-cement group”, with a market share of more than 30 %, the Holding Company “Sibirskiy cement” (11 %), “Novoroscement” (more than 8 %). The Russian cement industry is a dynamic field. After the crisis in 2009, a steady increase in the production of cement has been observed
The National Cement Industry Union (SNIC) has estimated a 3.7% year-on-year increase in total cement sales to 26.9Mt in the first half of 2020 from 25.9Mt in the corresponding six months of 2019. Export sales rose by 56% to 84,000t from 54,000t. Sales increased by 7.7% month-on-month in June 2020, however SNIC president Paulo Camillo Penna expressed worries about demand going forward into the second half of 2020.
“The cement industry is responsible for more than 70,000 jobs, generates an income US$4.94bn and an annual net collection of US$562m. We are very sensitive to the macroeconomic scenario and government stimuli. For this reason, the cement industry is anxiously awaiting the launch of the new government housing project, ’Casa Verde Amarela,’ which is expected to leverage the real estate and renovation market more strongly, and resta
Brazil spans 8,515,767km2 of land divided into 26 states, is the largest country in South America and the fifth-largest country in the world. With a population of 204 million in 2015, it is the sixth most populous country world-wide. As one of the biggest global emerging and developing markets, Brazil is home to a large and busy cement sector with local and international players alike.
Brazil is one of the BRICS economy countries (Brazil, Russia, India, China and South Africa) and is characterized by newly-advanced economic development.
In 2015, the Brazilian cement industry is dominated by nine companies that possess a total production capacity of 70.75Mt/yr from 64 integrated cement plants. This represents 92.5% of the entire country’s production capacity and 80% of the country’s cement plants.
|Rank||Company||Plants||Cement capacity (Mt/yr)|
|2||InterCement Brasil SA||14||16.5|
Brazil’s major cement producers, plants and production capacity in 2015. Source: The Global Cement Directory 2016
Votorantim Cimentos- Leader Producer in Brazil
is the industry leader in Brazil, with a total installed capacity of 24.6Mt/yr from 20 cement plants. This excludes four cement plants that are under construction and its mothballed cement plant in Ribeirão Grande, São Paulo, but includes the three active cement plants and 2.25Mt/yr of cement capacity of Mizu Cimentos Especiais, in which it holds a 51% stake. This gives it a market share of 32.1%. Aside from being Brazil’s largest player, Votorantim is also the ninth-largest global cement producer, according to the Global Cement Directory 2016 and the Top 100 Global Cement Companies Report 2015.
The statistic shows the production volume of cement in South Korea from 2006 to 2017. In 2017, around 62.64 million tons of cement were produced in South Korea, increased from around 61.55 million tons in the previous year.
In 2015, the amount of cement produced in Japan was approximately 54 million metric tons, down from around 57 million tons in the previous year.
As of April 2017, the industry’s production scale spanned 30 plants owned by 17 companies, supporting clinker production capacity of 55 million tons.
Cement plants are located around Japan. There are particular high concentrations, however, in the Kyushu region (6 plants) and Yamaguchi Prefecture (4 plants), both areas known for their rich limestone resources, and the Kanto district – the nation’s largest cement consumption market (6 plants). At present, there are large-scale plants with annual clinker production capacity of over 6 million tons. Furthermore, around clinker production capacity per plant stands at approximately 1.8 million tons.
These plants continue to advance mechanization and computerization with the average number of full-time workers at each plant now slightly over 100 persons.
Turkey has 50 active integrated cement plants and 84.6Mt/yr of production capacity , according to the Global Cement Directory 2015 and Global Cement research. A further three integrated plants are under construction, one grinding plant is having its first clinker line installed to become an integrated cement plant and another plant is being relocated in Afyon.
Turkey also has 17 active grinding plants (excluding the soon-to-be integrated cement plant) and >8.56Mt/yr of grinding capacity. The production capacities of some of the grinding plants is unavailable.
The Turkish Cement Manufacturers’ Association (TCMA) claims that Turkey has significantly higher cement and clinker production capacities than Global Cement can verify.
Cement producers in Turkey
The majority of cement producers in Turkey are Turkish companies. Akçansa Çimento, Oyak Group, Çimsa Çimento, Limak Batı Çimento, Aşkale Çimento and Limak Çimento are the country’s major Turkish cement producers. There are also many companies that have one or two cement plants each. Multinational producers like Votorantim Çimento, Lafarge, Cementir Holding and Vicat are also active in Turkey’s cement market.
Oyak Group is Turkey’s largest cement producer by installed integrated cement production capacity.
|Rank||Company||Plants||Cement production capacity (Mt/yr)|
|5||Limak Batı Çimento||5||5.41|
|11||Bursa Çimento Fabrikası||1||3.00|
|12||KÇS Kahramanmaraş Çimento||1||2.80|
|13||Göltaş Göller Bölgesi Çimento||1||2.00|
|14||Batıçim Batı Anadolu Çimento||1||2.00|
Turkey’s largest cement producers in 2015 by installed active integrated cement production capacity. Source: The Global Cement Directory 2015 and Global Cement research.
Data from the Turkish Cement Manufacturers’ Association (TÇMB) shows that domestic cement sales have been rising steadily to 72.2Mt in 2017 after a blip in the late 2000s. So far 2018 has not kept the trend, with a drop of 2.01% year-on-year to 50.8Mt for the first nine months of 2018 from 51.8Mt in the same period in 2017.
Turkey is also a major exporter of cement so these are the other figures to watch. After hitting a high of nearly 18Mt in 2010 they dropped for five years before rising again. The ratio of clinker in the exports total has also been growing recently. Like domestic production ,exports were down at the nine month mark in 2018, by 1.8% to 9.9Mt, but the ratio of clinker exports has continued to grow.
A clip about Top Cement Producing Countries 1960 to 2019
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