Cement Tonnage for September Contracts
According to recently released USGS data, cement shipments to the state of Alabama for the month of September 2018 contracted by 1.6% compared to the same period in 2017. When compared to August 2018, cement shipments had a much larger contraction of 13.6%. Over the last six months, we have seen the cement tonnage experience alternating months of rising and falling demand. The 99,853 tons represents the low water mark for the state since the 93,323 tons were shipped in February. Trying to predict the economy is never an easy task, but with the multiple interest rate increases in 2018, we are bound to see a contraction in construction particularly in the residential arena. Adding credence to the interest hikes affecting the residential market, the Home Builder Index in the South region has dropped 3 of the last 4 months.
Utilizing the NRMCA conversion factor for cement tonnage used in the ready mix market, it is estimated that 369,775 cubic yards were placed during the month of September. For the year, Alabama has seen ready mix yardage grow by 11.6% over the first 9 months of 2017.
If you have any questions about this report, please contact the ACIA office.