Industry Trend Analysis - Challenging Sand Production To Keep Prices Elevated, Incentivise Substitution - OCT 2017

BMI View: Construction sand and gravel production will struggle to keep pace with rising global demand, due to regulatory constraints and the fragmented and informal nature of the market. As a result, we expect sand prices to remain elevated, pushing consumers to explore substitutes, particularly in developed markets.

Strong construction industry outlooks in key countries will drive both construction and increasingly industrial sand demand. The USGS categorises sand and gravel as industrial (end-uses include hydraulic fracturing and glassmaking) and construction (predominantly used as concrete aggregates and road building). The latter market is significantly larger, given the amount of concrete used in construction, with the US construction sand and gravel mining industry totalling an estimated USD8.9bn in 2016.

Construction Sand In High Demand

Solid Construction Outlook To Drive Sand Demand
US - Apparent Construction & Industrial Sand/Gravel Consumption By Use (%), 2016
Note: Construction uses in blue shades; industrial uses in pink. Source: USGS, BMI

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