What are cement companies doing about the shortage?
Cement companies are deeply concerned about the inconvenience the shortage is causing to the construction industry and to consumers. The companies are working closely with their customers to meet their supply requirements, including expanding production and storage capabilities, reconfiguring distribution networks, and increasing imports where necessary. What are cement companies doing to bolster supply? U.S. cement plants are operating at maximum levels, as they did throughout 2004. To meet market demand last year, cement producers drew 4 million tons from inventory. This year, inventory levels are at historic lows and a further draw-down is not likely. To meet demand, additional cement is also being imported. Imports’ share of the total market rose from 20.6% in 2003 to 22.7% in 2004. PCA expects imports will reach more than 25% during 2005 through 2007. However, higher shipping rates and a shortage of cargo ships might hinder the ability to bring in imported cement. In spite of thes
