News

U.S. population is expected to grow to 363 Million by 2030 and 438 million by 2050. U.S. cement consumption by 2030 will require a 43% increase in capacity to accommodate housing, buildings and road construction.

Significant increases in clinker capacity are expected to materialize during 2008 — 2012. The U.S. cement industry has announced plans to increase clinker capacity by nearly 25 million metric tons between 2007 and 2012. The aggressive capacity expansion reflects a $5.9 billion investment, which will increase capacity 27% compared to 2006 U.S. clinker capacity. The expansion spans seven greenfield sites and expansion of 18 existing facilities.

The likelihood of weaker near-term cement consumption, coupled with the aggressive expansion in capacity, may result in lower kiln utilization rates. During the height of the past cyclical peak (2005), PCA calculated kiln utilization rates at 95%. These rates could slip to a range of 85% to 87% during 2008 — 2009. A 1.0% reduction in utilization rates translates into a 1 million-metric ton reduction in domestic supply.

Powder import volumes are expected to show a sustained decline throughout most of the forecast — remaining at or below 20 million metric tons. Imports are expected to decline 33% during 2007, followed by an additional 17% reduction in 2008, an 11% drop in 2009, and a 5% fall in 2010. The expectation of stronger consumption leads to a small increase in imports by 2011, according to PCA's forecast, however, the likelihood of sustained high freight rates adds downside risk to these import projections.

Increases in demand for seaborne trade have pushed freight rates to record levels. Through September, rates from Asia to the United States have increased $17 per ton, or 31%, since a year ago. Transatlantic freight rates have reached nearly $16 per ton, or 52%, since 2006. While dry-bulk freight rates are highly volatile, PCA believes that further tightening may materialize during the next two years or longer.

Lehigh Cement will be moving their corporate headquarters to Dallas, Texas in the first half of 2008.

Portland Cement has a new President and CEO, Brian McCarthy. He was the chief operating officer for the largest IT association and a graduate of the University of Illinois. He says he wants to approach 2008 and 2009 years as periods of “investment.” While he acknowledges a downturn in residential markets he feels strongly that the other markets, such as bridges and public works are going to be a brisk success!

Holcims Cement's new Ste. Genevieve plant in Missouri will be a state of the art, environmentally responsible facility that will employ 200 full time workers.

State owned Coal India Ltd is making plans to join the power sector as its strategy for forward integration. Plans include the building of two new power plants with an aggregate capacity of 1,500 MW. Current estimates show both mines together have reserves of over 2 billion tons. The size of these reserves should be good enough to feed power generation at the two proposed plants for the next 30 years, said one official.

The cement industry is a significant component of the U.S. economy. At the turn of the century the United States contained 116 cement plants operated by 39 companies in 38 different states across America with annual shipments valued over $8 billion. However impressive, the United States cement production ranks third behind India and China (the world’s leading producer of cement).

EPA’s rule on coal plants mercury emissions has been challenged …source USATODAY At issue is the Environmental Protection Agency’s 2005 Clean Air Mercury Rule, which allows utilities to buy and sell emissions credits. The rule is being challenged by a coalition of environmental groups, 14 states and a number of Native American tribes. In 2000, during the Clinton administration, the EPA said coal burning power plants should be required to use the most high-tech, effective emissions available to reduce mercury emissions. During the Bush administration, the EPA officials reversed course, saying the original decision didn’t account for reductions in mercury emissions that would occur as power plants installed controls aimed at other air pollutants. Will the appellate judges overturn the EPA’s emission rule? Will a new administration require even tougher controls? Global Construction brings years of experience and the latest technology to make compliance issues manageable. Specialized crews with cutting edge equipment can be mobilized to eliminate disruption to your already overloaded work schedules. Our specialized engineering department can develop a program that can meet the ever changing requirements and provide financial planning to incorporate into your future budgets. Call us today.

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