Pit & Quarry, October 2013

INDUSTRY SNAPSHOT P Q AGGREGATES INDUSTRY INDEX NOV10 DEC JAN 11 FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN 12 FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN 13 October 243 FEB MAR APR MAY JUN JUL AUG SEPT OCT Source Pit Quarry 250 200 150 The Pit Quarry Aggregates Industry Index dropped a point this month but remains above 240 Economist says more cement consumption coming An unusually wet spring and early summer dampened cement consumption for the first quarter of 2013 according to the Portland Cement Association PCA but its chief economist is optimistic for strong growth in the construction sector in 2014 and beyond According to PCAs latest forecast cement consumption will increase 4 percent in 2013 Cement consumption will approach double digit growth in 2014 and 2015 though with 97 percent consumption increases in both years Nearly two thirds of the anticipated growth in 2013 cement consumption will be caused by gains in the residential construction market says Ed Sullivan PCA chief economist Home inventories are declining signaling that it is time to start building while the lingering effects of damaged credit due to foreclosure activity have created a robust apartment demand Asphalt demand to rise each year through 2017 Demand for asphalt in the United States is forecasted to increase 37 percent annually to 279 million tons in 2017 according to a Freedonia Group Inc report Demand is expected to advance from its low 2012 base spurred by growth in highway and road construction spending and building construction expenditures Still the Freedonia Group reports that asphalt demand in 2017 will not reach the level seen in 2007 The rising use of recycled asphalt pavement RAP and increasing interest in FIRST OF MONTH OPENING SEPT AUG Cemex CX 1139 1161 CRH Oldcastle CRH 2156 2152 Eagle Materials EXP 6542 6844 Granite Construction GVA 2880 2995 Martin Marietta Materials MLM 9678 9960 Texas Industries TXI 5912 6306 U S Lime Minerals USLM 5900 5980 Vulcan Materials Co VMC 4839 5011 Source Yahoo Finance Only CRHs Oldcastle stock rose from August to September and it only grew by 4 cents Eagle Materials had the most significant one month drop at 45 percent rehabilitating and repairing older or worn surfaces instead of building new roads will serve as a check on asphalt demand advances the Freedonia Group says According to the Freedonia Group paving products accounted for 71 percent of asphalt consumption in 2012 They will remain the leading application for asphalt going forward increasing 39 percent per year through 2017 The Freedonia Group says paving products demand will be suppressed by increasing use of in place recycling road construction methods Monthly Construction Contract Value Seasonally Adjusted Annual Rates in Millions July 2013 June 2013 Change Nonresidential Building 161294 149616 8 Residential Building 204059 198172 3 Nonbuilding Construction 113788 139026 18 Total Construction 479141 486814 2 Source McGraw Hill Construction Year to Date Construction Contract Value Unadjusted Totals in Millions 7 mo 2013 7 mo 2012 Change Nonresidential Building 88257 91239 3 Residential Building 117739 91545 29 Nonbuilding Construction 75730 96669 22 Total Construction 281726 279453 1 Source McGraw Hill Construction 8 PIT QUARRY October 2013 www pitandquarry com