For the Quarter Ending September 2025
North America
• In the United States, Portland Cement Price Index fell in Q3 2025, driven by weakened construction.
• Production costs faced upward pressure from a 2.6% PPI increase in August 2025.
• Demand softened due to contracted residential construction activity in Q3 2025.
• US industrial production increased 0.1% year-over-year in September 2025, limiting demand.
• Natural gas prices strengthened year-over-year in Q3 2025, despite easing in September.
• Consumer confidence declined to 94.2 in September 2025, indicating bearish housing sentiment.
• Low 4.3% unemployment and 5.42% retail sales increase in September 2025 supported some commercial demand.
• US exports of Cement Articles decreased in July 2025; imports increased, affecting supply.
• Data center construction surged in Q3 2025, providing a specific growth area.
• A 3.0% CPI increase in September 2025 suggested higher interest rates, impacting construction financing.
Why did the price of Portland Cement change in September 2025 in North America?
• Weakened nonresidential construction starts in September 2025 reduced overall Portland Cement demand.
• A 3.0% CPI increase in September 2025 suggested higher borrowing costs, dampening construction.
• Natural gas prices eased in September 2025, offering some relief to Portland Cement production costs.
Europe
• Germany's Portland Cement Price Index remained stable in Q3 2025, influenced by mixed demand and easing energy costs.
• Portland Cement production costs were mixed; natural gas eased in Q3 2025, but thermal coal prices strengthened in August.
• Industrial producer prices decreased 1.7% in September 2025, from lower energy costs, impacting Portland Cement.
• Portland Cement demand was bearish; industrial production declined 1.0% in September 2025, and Manufacturing Index contracted.
• Overall construction output declined in September 2025, but dwelling permits increased in July and September, suggesting future demand.
• Retail sales rose 0.2% in September 2025, supporting consumer construction; unemployment remained stable at 6.3%.
• Robust European natural gas storage, over 80% full by September 2025, stabilized Portland Cement energy feedstock.
• German cement manufacturing faces long-term business decline; broader European chemical market restructuring is predicted for 2025.
Why did the price of Portland Cement change in September 2025 in Europe?
• Industrial producer prices decreased 1.7% in September 2025, driven by lower energy costs.
• Industrial production declined 1.0% in September 2025, signaling reduced industrial demand.
• Natural gas feedstock costs eased in Q3 2025, stabilizing in September, reducing operational expenses.
APAC
• In China, the Portland Cement Price Index fell quarter-over-quarter, influenced by deflationary pressures and weak construction demand.
• The Portland Cement Price Forecast suggests continued downward pressure from contracting manufacturing and sluggish real estate.
• Portland Cement production costs saw declining thermal coal prices; natural gas prices stabilized in Q3 2025.
• Portland Cement demand outlook is bearish, with CPI -0.3% and PPI -2.3% in September 2025.
• Despite industrial production growing 6.5% in September 2025, the Manufacturing Index was contracting, impacting construction.
• Consumer confidence at 89.6 in September 2025, with plummeting property viewings, impacted residential construction.
• Retail sales grew 3.0% and unemployment was 5.2% in September 2025, but sentiment remained cautious.
• Cement producers curbed production capacity in Q3 2025 to align with weaker demand, preventing oversupply.
Why did the price of Portland Cement change in September 2025 in APAC?
• Deflationary pressures, with CPI -0.3% and PPI -2.3% in September 2025, weakened overall demand.
• Sluggish real estate market activity and plummeting property viewings reduced construction materials demand in Q3 2025.
• Cement producers curbed production capacity in Q3 2025 to address oversupply from contracting manufacturing.
