The latest edition of The Monitor, a monthly analysis of trends in the U.S. construction and cement industries published by the Portland Cement Association, notes that cement consumption projections calling for a 1.9 percent increase are in need of adjustment to reflect stronger 2004 growth rates. Key to the revision is higher-than-expected cement intensity levels.

PCA still anticipates a cooling later this year cement demand brought on by brought on be higher interest rates interest rate growth. Demand for 2004 may be somewhat larger than previously forecast. This suggests that strong first half conditions may be partially countered by a cooling in residential construction later this year. Moreover, negative year-over-year growth in cement consumption may materialize in the second half of 2004.

The report also provides an assessment of current cement shortage conditions.

Key statistics from The Monitor:

• Portland cement demand increased 14.8% in February followed by a 23.8% gain in March. On a seasonally adjusted annualized basis, March’s reading of 125.9 mmt is a single month record. Year-to-date consumption is tracking 12% above last year.
• Blended cement was rather flat in March at -0.3%. Year-to-date consumption is down 12.3%.
• Masonry cement increased 28.3%, following significant gains in January and February. Year-to-date consumption is 21.3% above 2003 levels.
• In an effort to support demand, cement and clinker imports continued to grow at 7.9% in February and 11.5% in March. Year-to-date, imports are up 13.7% from the first three months of last year.

Reflecting on the latest data from several government-issued reports including the U.S. Geological Survey, The Monitor breaks down national economic trends, reports on cement consumption, and provides an in-depth analysis of construction activity for the residential, commercial, and public sectors.

The Monitor is available to PCA members and the media upon request.

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.

# # #