Notwithstanding its deceleration in growth, China still represents the fastest growing major national market in the world, according to the report.

Increases will be bolstered by a growing domestic economy, ongoing industrialization, rebounding foreign investment funding, continuing efforts to expand and upgrade physical infrastructure, rising income levels, and further population and household growth. These and other trends are presented in Construction Outlook in China, a new study from the Beijing office of The Freedonia Group, Inc., a Cleveland-based industry research firm.

Nonbuilding construction will be the fastest growing sector, advancing 10.0 percent annually in real terms through 2014. Government spending initiatives are the predominant drivers of nonbuilding construction activity. Growth will benefit from state-led efforts to expand and upgrade China’s transportation infrastructure. Utilities construction will also contribute to nonbuilding construction spending gains, as the government continues to increase power generation capacity and improve electricity transmission networks.

Residential building is the largest market for construction services in China, accounting for 37 percent of total construction spending in 2009. Residential building construction expenditures are expected to increase at an annual pace of 8.4 percent through 2014, primarily supported by rising personal income levels. Government efforts to improve living conditions for low-income earners (including the construction of affordable and low-rent houses in urban areas and subsidies for alterations of dilapidated farmhouses in rural areas) will also bolster residential building construction spending. However, deceleration in the overall economy and household formation will constrain residential building construction activity to some extent.

Nonresidential building construction expenditures are forecast to rise 9.0 percent per year through 2014. Growth will be driven by rebounding local and foreign investment in the manufacturing sector, following the sharp moderations associated with the global economic downturn of 2008 and 2009. Government efforts to improve public services such as health care and education will also spur gains.

This is equivalent to 169 million barrels of primary asphalt, the vast majority of which is refined petroleum asphalt.

The expected growth represents a rebound from the 2003-2008 time frame, when consumption declined sharply, according to the report.

Demand gains will derive primarily from the recovery of new residential construction from its weak 2008 levels, benefiting both roofing and paving products.

Gains will be moderated by slower than average growth in both residential and nonresidential improvement and repair applications and an outright decline in demand in new nonresidential building applications. These and other trends are presented in Asphalt, a new study from The Freedonia Group, Inc., a Cleveland-based industry research firm.

Paving products accounted for more than 80 percent of overall asphalt consumption in 2008. Demand for asphalt paving products will benefit from increased federal and state spending on highway and road construction.

Gains will advance from a weak 2008 base, when extremely high asphalt prices led to a rollback in paving activity. As paving asphalt prices moderate, the volume of paving asphalt consumed will expand. Overall, demand for asphalt in paving uses is forecast to increase 1.7 percent annually to 25.5 million tons in 2013.

Demand for asphalt in roofing and other applications is forecast to rise 1.6 percent annually to 5.3 million tons in 2013.

“This is a considerable improvement from the very weak levels of 2008, reflecting a recovery in construction of single-family housing, which will benefit asphalt roofing used in steep slope applications, primarily asphalt shingles,” The Freedonia Group notes in a written statement. “Demand will also benefit from the growing demand for modified asphaltic membranes in low-slope roofing applications, although much of this is a replacement of other asphalt products, such as standard asphalt felts and roofing asphalts.”

Growth opportunities will also continue to present themselves in maintenance and repair applications in both residential and nonresidential markets, according to the report.

For the original press release on the report and a look at U.S. asphalt demand through 2013, click here: Asphalt Report–Freedonia Group–2544

For more information on this report, go to www.freedoniagroup.com.