Heidelberg Materials expects global construction demand to stabilize amid economic challenges

Heidelberg Materials expects global construction demand to stabilize at a low level amid inflation and high financing costs -- particularly affecting residential construction -- while volatility in energy and raw materials markets is likely to continue, the building materials and solutions company said in its half-year financial report July 31.

"Even though demand is still volatile in some regions, we expect that stabilization in our core markets is continuing," said Dr. Dominik von Achten, chairman of the managing board of Heidelberg Materials.

In the first half of 2025, the company saw slightly positive volume growth in most areas despite ongoing political and economic uncertainties, adverse weather conditions and varying trends across group divisions.

"Overall, the Group's cement and clinker deliveries were slightly above the previous year's level," the company said.

In Europe, cement business volumes declined year over year as construction activity remained subdued across many countries.

"Higher interest rates, a loss of purchasing power and the considerable rise in construction costs, as well as influences such as changes in funding for new construction and tax increases, had a dampening effect on the construction industry [in Europe]," the company added.

In North America and Asia-Pacific, cement and clinker volumes rose slightly in the first half of 2025, though regional differences persisted.

Thailand experienced a recovery in domestic cement demand, boosting deliveries from the company's plants, while Indonesia saw a slight decline due to weak demand for bulk cement amid reduced infrastructure spending.

Bangladesh also faced a decline, attributed to a challenging macroeconomic environment and low construction activity.

The Africa-Mediterranean-West Asia region saw a significant increase in cement and clinker volumes, driven by improved construction activity.

"At our Turkish joint venture Akcansa, cement and clinker volumes decreased slightly in the first half of 2025 due to the general economic situation, but the increase in clinker exports mitigated the decline," the company said.

Platts, part of S&P Global Energy, assessed CEMDEX Turkey at $55/mt FOB on July 24.