National demand for cement is up over last year’s record levels, heightening shortages in several regions of the country.
The shortage hasn’t affected Colorado as severely as other states, but industry experts say that could change soon.
“There have been steady price increases; we’re just paying a little bit more,” said Dick O’Brecht, president of the Associated General Contractors of Colorado.
At least two Colorado companies – Holcim (US) Inc. in Florence and Ready Mixed Concrete in Denver – are cashing in as the country’s demand for cement outpaces supply. In the past year, Ready Mixed Concrete Co. has raised its prices 10 percent.
On new projects, Ready Mixed no longer guarantees pricing because it can’t guarantee it will be able to provide the product, said Don Yale, the company’s chief accountant.
“The projects that are going to be impacted are the ones that are just getting ready to start,” he said.
Holcim is importing cement to meet the demand, spokesman Tom Chizmadia said. He declined to discuss whether Holcim has raised its prices.
Through the first quarter of this year, U.S. cement consumption increased 7 percent over record levels set in 2004, according to the Portland Cement Association, a Skokie, Ill., trade group representing cement companies in the U.S. and Canada.
Cement consumption in the United States grew to a record 119.9 million metric tons in 2004, an increase of 6.8 percent over 2003.
Greater demand for cement abroad – particularly in Asia and South America – means there is less cement for the U.S. to import. The nation’s industry is trying to compete by pressing the U.S. Commerce Department to lift tariffs on Mexican cement imports.
“Chinese economic growth has been at 10 percent annualized for almost 10 years,” said Ed Sullivan, chief economist with the Portland Cement Association. “That can exert considerable demand on the world’s economy.”
The shortage isn’t likely to affect the Transportation Expansion Project, or T-REX, one of Colorado’s largest projects using concrete. The $1.67 billion highway widening and light- rail construction on Interstates 25 and 225 is scheduled for completion next year. Aggregate Industries, which has operations in Golden, supplies all of the project’s concrete.
“We have set a price we negotiated from the beginning,” said Hunter Sydnor, spokeswoman for T-REX builder Southeast Corridor Constructors. “We are their priority client, so we’ve not had any availability issues.”
Staff writer Margaret Jackson can be reached at 303-820-1473 or mjackson@denverpost.com.
