Cement price May 2023 and forecast (see chart below)
- USA:US$0.14/KG, unchanged
- Europe:US$0.16/KG, unchanged
- China:US$0.09/KG, unchanged
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Cement price index
This post is a summary of the Cement price developments. The price developments of Cement are expressed in US$ prices converted FX rates applicable at the time when the price was valid. Cement price index developments are calculated from multiple separate sources of data to ensure statistical accuracy.
The outlook for Cement prices, on the second tab, is generated from different inputs including:
- Very recent price developments of immediate cost drivers of Cement prices
- Recent price developments of underlying feedstocks which drive the price of Cement
- Market futures for both cost drives and feedstocks of Cement prices
- Adjustment of current supply/demand imbalances in the Cement market
- Longer term trends in likely demand conditions
Further information on the Cement price index
What is cement
Cement is a powdery substance made from a mixture of minerals, such as limestone and clay. It is used as a binding agent in construction materials, such as concrete, mortar, and grout. When mixed with water, cement reacts chemically and hardens over time, providing a strong and durable material. Cement is commonly used in the construction of buildings, bridges, roads, and other infrastructure. It is also used in the production of precast concrete products, such as blocks, pipes, and tiles.
How is cement produced
Cement is typically produced through a process known as “dry process” or “wet process.” In the dry process, raw materials are crushed and ground into a fine powder, which is then mixed together in the correct proportions. The dry mixture is then fed into a kiln, where it is heated to a high temperature (around 1450°C) to produce “clinker,” which is a hard, grayish-black material. The clinker is cooled and ground into a fine powder, which is then mixed with a small amount of gypsum to produce cement.
In the wet process, the raw materials are ground into a slurry, which is then fed into a kiln. The wet process is less energy-intensive than the dry process and is typically used in areas with abundant water resources. However, it is more complex and requires more equipment, making it less commonly used than the dry process.
Regardless of the process used, the production of cement involves several stages, including quarrying and crushing raw materials, preparing the raw materials for the kiln, and grinding and storing the finished product. Cement production can be a resource-intensive process, requiring large amounts of energy and raw materials. It also generates significant amounts of greenhouse gas emissions. As such, efforts are being made to reduce the environmental impact of cement production through the use of alternative raw materials and more efficient production processes.
What drives the cost of cement
The cost of cement can be influenced by several factors, including:
The cost of the raw materials used to produce cement, such as limestone, clay, and gypsum, can impact the cost of cement production.
The production of cement requires a significant amount of energy, including both electricity and fuel for the kilns. Therefore, fluctuations in energy prices can also impact the cost of cement.
Cement is often produced in one location and then transported to other areas for use. The cost of transportation, including fuel prices and logistics, can affect the final price of cement.
The cost of labor can also impact the price of cement, as production facilities require skilled workers to operate and maintain the equipment.
Finally, the supply and demand for cement can also affect its price. If demand for cement is high, prices may increase due to the limited supply. Conversely, if demand is low, prices may decrease as producers try to attract customers.
What is cement used for
Cement is used in a wide variety of construction applications. It is most commonly used to bind together the various materials used in the construction of buildings, bridges, roads, and other infrastructure. When mixed with water, sand, and gravel, cement forms concrete, which is a strong and durable building material. Concrete is used to make a wide range of products, including concrete blocks, pipes, and precast panels, as well as to create foundations, floors, and walls.
Cement is also used to make mortar, which is used to bond brick, block, and other masonry materials together. Mortar is typically made by mixing cement, water, and fine aggregate, such as sand. It is commonly used in the construction of walls, both load-bearing and non-load-bearing.
In addition to its use in construction, cement has a number of other applications. It is used in the production of concrete products, such as pipes and blocks, and can be used as a grouting material for filling voids and sealing joints. Cement is also used in the manufacture of certain types of insulation and as a component of concrete blocks and other building materials.
What types of cement are there
There are several types of cement that are used in construction, including:
Ordinary Portland cement (OPC)
This is the most common type of cement and is used in a wide range of construction applications. It is made from a mixture of limestone and clay and is known for its strength and durability.
This type of cement sets and hardens faster than OPC, which makes it useful in situations where time is of the essence. It is often used in the construction of roads and other infrastructure projects.
This type of cement generates less heat during the hydration process, which makes it useful in situations where thermal expansion is a concern, such as in the construction of massive concrete structures.
This type of cement is resistant to attack by sulphates, which makes it suitable for use in areas with high levels of sulphates in the soil or groundwater.
This type of cement is made from raw materials that are low in iron and other impurities, which gives it a pale gray or white color. It is often used in decorative applications where a light-colored finish is desired.
This type of cement is made by blending OPC with other materials, such as fly ash, slag, or limestone. Blended cements can have improved properties and are often used in specific applications, such as in the construction of marine structures or in mass concrete placements.
How big is the cement market
The global cement market is a large and growing industry. According to data from the World Cement Association, the global cement industry produced 4.2 billion metric tons of cement in 2020. The demand for cement is driven by the construction industry, which is a major contributor to the global economy. Cement is a vital component of concrete, which is used in a wide range of construction applications, including buildings, roads, bridges, and other infrastructure.
The Asia-Pacific region is the largest market for cement, accounting for more than half of global demand. China is the largest producer and consumer of cement, followed by India, the United States, and Indonesia. Other significant markets for cement include Europe, Latin America, and the Middle East.
The cement industry is characterized by a high level of consolidation, with a few large multinational companies accounting for a significant share of global production. However, there are also many smaller, regional cement producers that serve local and national markets. The cement industry is facing a number of challenges, including rising raw material and energy costs, increasing environmental regulations, and competition from alternative construction materials. Despite these challenges, the demand for cement is expected to continue to grow in the coming years, driven by population growth, urbanization, and infrastructure development.
According to https://oec.world/ :
Cement are the world’s 257th most traded product.
In 2020, the top exporters of Cement were Vietnam ($1.48B), Turkey ($1.28B), United Arab Emirates ($578M), Thailand ($574M), and Germany ($528M).
In 2020, the top importers of Cement were United States ($1.3B), China ($1.2B), Bangladesh ($513M), Philippines ($464M), and France ($452M).
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Notes on the price-data
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