More public construction means more cement sales in US

Expected increases in public construction activities will mean greater demand for cement in the back half of 2010, the latest Portland Cement Association forecast says.

The association said it anticipates a 5 percent increase in sales over 2009 levels, but the gain will materialize during the second half of the year.

Then, a 13 percent jump is predicted for 2011, followed by a nearly 19 percent increase in 2012, the group said.

"The 2010 recovery in cement consumption lays largely on expectations for public construction activity," Edward Sullivan, the industry group's chief economist, said in a statement. "Spending from the stimulus bill will more than double to $12 billion and that spending is expected to reflect an increased share of major highway construction and bridge projects -- high cement-intensive projects."

Oil and farm construction will also contribute to this year's increase. Commercial sector sales are expected to decline 29 percent.

From China Cement (2010-5-17)