Asphalt Market in China

• Publication date: April 2009

Demand in China to rise 5% annually through 2012 Demand for asphalt in China is expected to rise 5.0 percent annually through 2012 to 16.8 million metric tons. Growth will be supported by increasing construction expenditures fueled by continuing urbanization and modernization. In particular, nonbuilding construction spending will be the leading driver of asphalt demand growth going forward. Central and local governme...

Demand in China to rise 5% annually through 2012





Demand for asphalt in China is expected to rise 5.0 percent annually through 2012 to 16.8 million metric tons. Growth will be supported by increasing construction expenditures fueled by continuing urbanization and modernization. In particular, nonbuilding construction spending will be the leading driver of asphalt demand growth going forward. Central and local governments will continue to invest extensively in asphalt consuming infrastructure projects such as highway and other paved surface construction. Such investment is part of longer-term development plans, but will also be accelerated by spending included in China’s stimulus package designed to offset the effects of declining trade volumes and urban real estate market corrections on the domestic economy.





Gains in paving market to outpace roofing





Asphalt consumed in the manufacture of paving products in China is forecast to increase 5.4 percent annually through 2012. Rising expenditures on new road construction, as well as the maintenance and repair of a large and rapidly expanding stock of paved roads, will boost paving asphalt demand. Demand for asphalt used in roofing products in China is expected to expand 4.0 percent per year through 2012. Growth will be driven by increases in building construction expenditures. Asphalt shingles represent the fastest growing material used in sloped-roof applications in China, and will benefit from the ongoing Flat to Slope roof conversion project. Rising construction expenditures on residential, office and commercial, and industrial buildings will benefit demand for low-slope asphaltic roofing, such as modified bitumen membranes and built-up roofing. However, short-term gains will be restricted as urban real estate markets experience a correction following a period of overheating and the Chinese manufacturing sector adjusts to lower levels of global demand.





Southwest, Northwest regions to see fastest gains





Asphalt markets in the six regions that make up China vary considerably, reflecting differences in levels of construction activity, demographics, industrial output and economic development. The Central-East is expected to remain the largest regional asphalt market in China through 2012, fueled by increases in regional construction expenditures. However, asphalt consumption is forecast to climb at a much faster pace in the Southwest and Northwest, benefiting from the government’s Great Western Development strategy, which aims at improving the infrastructure and overall economic development in these areas.



Study coverage



This new industry study, Asphalt in China, presents historical demand data (1997, 2002 and 2007) plus forecasts for 2012 and 2017 by product, market and region. The study also considers market environment factors, details industry structure, evaluates company market share and profiles industry competitors.

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