Recently, the 20th telephone video conference of the Global Aggregate Information Network (GAIN) was held, with the participation of more than 10 international sand and gravel associations and industry organizations, including the China Sand and Gravel Association. The conference discussed and shared the sand and gravel production situation, industry problems and challenges, and the prospects of the sand and gravel industry in various countries and regions in early 2023. Sand and gravel representatives from
various countries shared the latest sand and gravel information one after another:
Xu Beibei from the International Department of China Sand and Gravel Association was entrusted by President Hu Youyi to attend the meeting. She said that the overall supply and demand of sand and gravel in China in 2022 was weak, and the supply side was affected by factors such as high inventory, epidemic prevention and control, and transportation obstruction. The production line operating rate and capacity utilization rate are generally low. In terms of demand, in 2022, the infrastructure investment will increase by 9. However, in 2022, the real estate investment will be sluggish, and the development investment will decrease by 10% throughout the year, which will provide weak support for the demand for sand and gravel. On the whole, the overall supply and demand of sand and gravel in 2022 is weak, and the output of sand and gravel is also higher than that in 2021.
The supply of sand and gravel in 2023 may increase steadily. Influenced by many factors such as epidemic prevention and control, shrinking demand and so on, sand and gravel enterprises generally have high inventory and insufficient operating rate, and the overall supply of sand and gravel in China has declined considerably compared with previous years. In 2023, with the gradual liberalization of epidemic prevention and control and the gradual release of production capacity of new and existing sand and gravel production lines, the supply of sand and gravel may increase steadily. In 2023, the demand for sand and gravel will decline steadily. In the long run, the real estate market has many strong conditions, but the possibility of recovering rapid growth in the short term is small, and the supporting role of the real estate market in the demand for sand and gravel in 2023 is still weak. Infrastructure demand will continue to grow rapidly in 2023, forming a strong support for sand and gravel demand. Wayne, CEO of the
New
Zealand Sand and Gravel Association, said that the construction industry in New Zealand is booming and has reached an all-time high. Flooding in the North Island has created challenges, in stark contrast to the South Island's well-run summer industry. Infrastructure has been given high priority, but there is still a housing shortage. There is also good news that the backlog of permits for new quarries is being actively resolved. Previous estimates of production growth for 2022 and 2023 remain unchanged. In 2022, New Zealand produced 48 million tons of sand and gravel, an increase of 9.1% over 2021, and in 2023, it is predicted that the production of sand and gravel will increase to 50 million tons, compared with last year
. There was no further update on production for 2022, other than to say that construction activity on Australia's east coast has been disrupted for much of the year due to unprecedented wet weather and flooding. However, the demand for sand and gravel is large and is expected to continue until the first half of 2023. Australia produced 213 million tons of sand and gravel in 2022, an increase of 4.4% over 2021, and production is expected to decline by 0.9% in 2023. 2.
Meena, a consultant to the Korea Sand and Gravel Association, reported that the Korea Sand and Gravel Association estimated that production in 2021 would be 390 million tons. The production in 2022 is slightly lower than previously expected. The outlook for 2023 is still optimistic, and it is expected to rise to 4 as the economy moves forward under positive stimulus.
India
Sandstone Manufacturing Association Deven reported that in the second half of 2022, Construction growth in India is very strong and will approach pre-pandemic levels by 2023. Aggregate supply is now under significant pressure, as is cement and concrete production. It is estimated that the national output of sand and gravel will be 5.3 billion tons in 2022 and will rise to 5.6 billion tons in 2023. Recent budget commitments
will 3.MalaysiaThe
Malaysian Quarrying Association Hock Soon said that with the recent democratic election of new Prime Minister Anwar Ibrahim, there is now more optimism that the economy will return to growth, with a new national budget expected in the coming weeks. Malaysia will update the national sand and gravel production data as soon as possible.
South Africa
Although construction output in the third quarter of 2022 was very positive, as was the Afrimat Construction Index (ACI), Letisha reported that, unfortunately, the economic outlook for the first quarter of 2023 has deteriorated due to a large number of ongoing electricity restrictions. It could last up to three years. Although diesel generators are used in some quarries, the investment costs are high and the cost of diesel is high, making this option beyond the reach of small operators. Sand and gravel production is also expected to decrease in 2023.
In 2022, South Africa produced about 159 million tons of sand and gravel, an increase of 2.6% over 21 years; In 2023, it is expected to fall by 2.5% to 1.
Daniel of the United Arab Emirates
has previously said that strong oil prices are pushing forward economic and infrastructure development, especially around Abu Dhabi. About 40-50% of production is exported, with recent strong demand from India and Bangladesh. In the wider Middle East, Saudi Arabia is embarking on the NEOM project and Bahrain continues to be active. Despite the sanctions, Iran is actively seeking to develop and export aggregates throughout the region. Mitchell of the
American Sand and Gravel Association reports that the aggregate market in the United States will be very strong in 2023, driven by the Infrastructure Act and the Inflation Reduction Act. The US Geological Survey is counting the final data of primary aggregates in 2022, and the results are expected to be available in the near future. The American Sand and Stone Association is also analyzing the production capacity of recycled aggregates and other related data. U.S. production data for 2022 and an updated outlook for 2023 will be finalized.
According to incomplete statistics, the production of sand and gravel in the United States will reach 2.61 billion tons in 2022, an increase of 6.6% over 21 years, and is expected to reach 2.8 billion tons in 2023, an increase of 7
% over last year. Aggregate data for sand and gravel from Canada will be reviewed at the upcoming Asia-Pacific meeting. In Ontario, the provincial government recognized the need to approve new quarries as a result of the positive medium-term outlook, driven by the demand for housing and infrastructure from a growing immigrant population. Canada produces 435 million tons of sand and gravel in 2022, an increase of 2.4% over 21 years, and is expected to reach 445 million tons in 23 years, an increase of 2 over last year. This year, Brazil's sand and gravel industry is expected to earn 34.3 billion reals (excluding taxes) to achieve a recovery since 2018. However, it is still much lower than in 2013. The market is expected to grow by about 3% in 2023. In the state of Sao Paulo, the largest aggregate producer in the country, the production of crushed stone in the metropolitan area of Sao Paulo reached 30 million tons, and the production of sand and gravel in the whole region of Sao Paulo reached 63 million tons.
According to statistics, the annual output of sand and gravel in Brazil is as follows: 535 million tons in 2019; 580 million tons in 2020; 628 million tons in 2021; and 6 tons in 2022. It is estimated that the output in 2023 will increase by 3% compared with that in 2022. In addition to the good performance of the market, progress has also been made in the policy system. The management of sand and gravel aggregates is decentralized to the States, which means that permits can be issued by the States themselves. The original license was concentrated in the capital of Brasilia, resulting in a delay in its issuance. Another development is propose legislation aimed at establish "perimeter security precautions" for mines. Carlos Fernando, general manager of the Colombian Stone & Sandstone Association
in Colombia
, said that a thorough review of the demand for sand and gravel in the six metropolitan areas was under way and that the sand and gravel outlook would be updated when the review was completed. It was previously expected to grow by 15% year-on-year to 1 by 2022. Stronger growth is expected from 2023 to 2024, driven by major investments in roads, railways, subways and other infrastructure. Antonis, president of the European Sandstone Association in
Europe
, said the situation in Europe was still uncertain and related energy prices had soared, although they were now easing. The EU27 + UK + EFTA data for 2021, driven
by a post-pandemic rebound, showed a 2.3% increase from 2020 to 30. However, geopolitical uncertainties could reverse this growth, while continued difficult markets could negatively impact performance in 2023. Bringing it to just under 3 billion tons.
Summary:
In 2022, the main trends are a sharp decline in China, the world's largest market, and a slight decline in Europe, the third largest market; these are somewhat offset by continued growth in India, the second largest market, and the United States, the fourth largest market. Global sand and gravel production in 2022 is slightly more than 40 billion tons, down from 2021. 4. Despite global geopolitical uncertainties, the overall outlook for 2023 is slightly more positive than that for 2022.