[Original] World white cement consumption is expected to accelerate growth from 2014 to 2020

   White cement is recognized as a niche product in the global cement market with excellent aesthetic and thermal properties, accounting for about 0.5% of the total global cement in 2014. The main reason is that white cement is mostly used in projects with design significance to enhance the heat dissipation of residential buildings. However, the higher quality of raw materials and specialized equipment have at least tripled the price of white cement compared to common grey cement.

   Global consumption of grey cement increased fourfold from 2011 to 2014, compared to the weak growth of white cement consumption, partly due to the dependence of white cement demand on developed markets such as Germany, Spain, the Netherlands and Italy, where consumption will fall sharply in the event of an economic collapse. China, which accounts for more than a quarter of global consumption, uses almost exclusively home-grown white cement. Although it can get some protection when the external market fluctuates, China will be affected by the reduction of local demand in regional trade. In this case, some local white cement production capacity must be considered under the regional market with a potentially significant impact on the global trading landscape. In all, about 26% of the world's white cement production is located in China.

   Demand is also expanding in the Middle East. For years, when these regional economies sought culturally compatible, innovative and design-friendly architectural styles, white cement led the way. The reflective properties of white cement also support the increase in demand, and it has a naturally cooled structure, which is an important feature in the high temperature environment of the Middle East. Despite the low usage of white cement in India, white cement consumption is also expected to increase significantly as the country continues to promote the recovery of the construction industry.

New production capacity is being launched .

   At the end of 2014, there were more than 100 white cement plants in operation worldwide, mainly in China, the Mediterranean Basin and the Middle East, with 38% of the plants located in China (accounting for 26% of white cement production capacity). According to the production capacity of white cement in the market, there are four major producers in the world: Aalborg (Cementir), Cemex, Lafarge and Cimsa, and others include some big giants. Such as JK Cement, Heidelberg Cement, Italcementi, Holcim and independent producers RAK White Cement, Federal White Cement. Many of these global producers have extensive trading networks that coordinate white cement operations around the world through centralized trading or product management teams.

   The trade environment may change in the Middle East, Eastern Europe and CIS countries, and new capacity is being launched in the United Arab Emirates and Uzbekistan. The Middle East is not only a major consumer of white cement, but also an important production centre. JK Cement's New White Cement Plant in Fujairah, UAE, was commissioned in March 2014. The capacity expansion of the RAK White Cement Plant has enabled the UAE to bring more products to the market, relying on large production bases in Saudi Arabia, Iran and other countries. Regions like the Middle East have the potential to change the existing supply, demand and trade environment, as well as Africa and the Mediterranean region, which can influence Turkey's export trade to the region. In addition to China, other capacity expansion projects are under way or have begun operation in Uzbekistan, Tanzania, Brazil and Saudi Arabia.

   Global white cement manufacturing is not the same as global consumption and demand across continents. Therefore, global trade plays an important role in meeting the needs of importing countries. In the past nine years, although the trade volume has fluctuated, it has generally remained around 1 million tons. Global trade in 2014 was 2% higher than in 2005, partly because white cement was entering new markets after the Spanish property market went down, and partly because new factories were coming on stream in countries such as the United Arab Emirates, adding capacity beyond current demand, meaning they needed export markets to keep growing.

   Although cement is traded globally, for most exporting countries, most of their export markets are regionally focused. Regional operations are cost effective for manufacturers seeking to build a regionally based customer base, where low transportation costs are advantageous to drive business.

   The three largest white cement importers in the world are the United States, Saudi Arabia and the United Kingdom, of which the demand for white cement in the United Kingdom is entirely dependent on foreign supply. From 2010, UK imports and its share of global white cement imports have been growing. The largest importer is the United States, which accounted for 16.6% of white cement trade in 2014. There is a gap between the production of white cement in the United States and demand, which is widened by the emphasis on safety and aesthetics in the transportation sector (increasing the use of white cement in highway and bridge construction). The United States mainly imports from Canada and Mexico, which is one of the world's largest exporters.

   In 2014, the top five white cement exporters were Turkey, Denmark, Spain, the United Arab Emirates and Mexico. In 2014, the world's top 11 white cement exporters accounted for 83% of global exports, while the top 13 white cement importers accounted for 67% of global imports. Trade between 11 major white cement exporting countries and 13 major white cement importing countries accounted for 43% of global white cement trade. The largest trade flows in 2014 were Canada-US, Egypt-Saudi Arabia, Mexico-US, and Turkey-Israel.

Look to the future

   Driven by demand in North America, the Middle East, Asia (excluding China) and Africa, white cement consumption will continue to grow over the next five years. However, there are regional differences, with consumption expected to decline in China and Eastern Europe, while demand in Africa (especially North Africa) will grow, and demand in the Middle East will be stable. With the growth of consumption, production capacity will also show an upward trend, and new investment and new equipment will be used for white cement production. In 2014, the utilization rate of global white cement production capacity was 70%, and the supply could well meet the demand. However, in some countries, capacity utilization is higher than 90%, and if demand continues to increase, new factories must be built or existing factories must be upgraded.

   Up to now, gray cement is still the largest cement demand variety, while white cement is an important and distinctive variety. As a niche market, white cement accounts for only 0.5% of the cement market. The trend of using white cement has been increasing over the past few years and this increase will continue over the next five years.