UK increasingly dependent on imports as cement output falls

UK cement production in 2024 hit its lowest level since 1950 as high energy, regulatory, and labor costs stifled the sector's competitiveness, according to a Sept. 4 report from the Mineral Products Association (MPA).

The UK made 7.3 million mt of cement in 2024, around half of what it produced in 1990, MPA said.

"Our latest MPA data shows that UK cement production has dropped to its lowest point in 75 years, putting the government's growth missions and housebuilding and infrastructure plans at risk," Diana Casey, Executive Director for cement and lime at the MPA said in a Sept. 4 Linkedin post.

Meanwhile, cement imports to the UK nearly tripled over the past 20 years, rising from 12% of all sales in 2008 to 32% in 2024, leaving construction supply chains increasingly exposed to the risks of volatile international markets, the MPA said.

"Without continued support to address high energy prices and uneven carbon regulation, domestic producers won't be able to compete and we'll see this trend continue," Diana added.

According to the MPA, the UK's cement manufacturers were battling some of the highest industrial electricity prices among developed nations and uneven carbon taxation, which meant importers – especially those outside of the EU – didn't pay the same costs for their emissions.

"The UK's Carbon Border Adjustment Mechanism is intended to address this from 2027, but it needs to be supported with a procurement policy that prioritizes domestically produced materials."

Platts, part of S&P Global Energy, assessed the CEMDEX Turkey price, reflecting Ordinary Portland Cement CEM I 42.5R (bulk), at $57/mt FOB Aug. 28.