SKOKIE, Ill.—Led by an expected 8.5% growth in China, world-wide portland cement consumption will increase 5.6% this year followed by a rise of 5.5% in 2007—an average of nearly 130 million metric tons annually—according to a new forecast by the Portland Cement Association (PCA).

The report cites growth conditions in the developing world, particularly China, as playing a critical role in consumption trends. Roughly 20% of cement consumption growth will occur outside of China and the industrialized world, mostly in other Asian countries, the Middle East, Eastern Europe, and South America.

“While the major developed economies like the U.S. and Western Europe have generally performed well,” PCA Chief Economist Ed Sullivan said, “world economic growth has been characterized by buoyant growth outside these industrial countries.”

Sullivan predicts the world economy will increase 3.2 % in 2006, with a 2.9 % increase expected in 2007.

Growth in cement consumption is expected to be in par with estimates for planned capacity expansions and paralleling usage, most expansions and plant updates will occur in China.

About PCA
Based in Skokie, Ill., the Portland Cement Association represents cement companies in the United States and Canada. It conducts market development, engineering, research, education, and public affairs programs.

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Note to editors: Note to editors: To obtain a copy of PCA’s International Forecast report contact Patti Flesher at newsroom@cement.org.