Markets
Currently, slag cement is used mostly on the East Coast of the US where steel producers are found. Some is imported through New Orleans from South American sources and relatively small quantities have come in to the West Coast from Asian sources. From 1998 to 2012, slag cement use rose from 1.5 to 4.0 million metric tons, and continues to gain market share over cement. Slag now holds 3.2% of the overall US cement market and the share is growing.
- Approximately 70% of cement goes into ready mixed concrete; 30% is used in concrete products: roof tiles, pipes, utility vaults.
- All these products are dependent on construction activity in residential, commercial and public works.
- In most concrete mixes, GGBFS can replace cement by up to 50%,
- The projected infrastructure construction activity will increase market penetration.
California cement market in 2016 will be close to 10.0 million tons
California Cap & Trade Legislation
Market-based tool to lower greenhouse gas emissions
- 1 ton of cement production emits equivalent of 1 emission credit (pollution allowance for 1 tonne CO2 emission).
- Tightening emissions cap in California will ultimately force cement producers to purchase emissions credits.
- Cement producers’ output in excess of their emissions cap will climb 30% from 2016 to 2019.
- Emission credit costs will be passed on by cement producers to their customers through higher cement prices.
Higher cement prices facilitate GGBFS price increases.