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1 [1] (November 3, 2023)

handle is hein.crs/govenja0001 and id is 1 raw text is: Congressional Research Service Informing the legislative debate since 1914 November 3, 2023 Cement: Background and Low-Carbon Production Though cement and concrete are often used interchangeably, they are two different yet related materials. Concrete is the finished composite that contains cement, along with other ingredients, with extensive use in the built environment in buildings, bridges, dams, and roads. Concrete is the world's most consumed material after water, and global demand for one of its necessary inputs- cement-is expected to increase from 4.2 billion metric tons (MT) today to 6.2 billion MT by 2050. Cement manufacturing contributes approximately 7% of global carbon dioxide emissions, making it one of the highest-emitting industrial sectors. Given the size of the global cement sector, its transition to low-carbon production is expected to play an important role in reducing the industry's global carbon dioxide emissions. The Cement Manufacturing Process Cement production begins with the mining of materials, such as iron ore, limestone, and shale. Once quarried, these materials are mixed together, placed in a kiln, and heated at extremely high temperatures (approximately 27000F), yielding what is called clinker-small grey balls roughly the size of marbles. Cement mills then grind clinker down to a fine power and mix in additives to produce cement. Cement comprises 10%-15% of concrete mix (Figure 1). Figure I. Cement Production Chain Raw Materials limestone-, ar le, dlay, and other maerials in small00 quantities, such as alumina, iron ore, and shale Kiln Output ,inker heated at ~-2700 degrees Fahrenheit Crushers & Raw Mill Cooler Cement Concrete clinker gypsum, 101 5% cement, supplementary 60-75% Aggregates cementitious materials rock and sand), (SCMsi, fillers 15-20% water US. Production, Consumption, and Use In 2022, the United States produced 95 million MT of cement, making it the fourth-largest producer, representing 2% of the 4.1 billion MT produced globally. China is the world's largest cement-producing country, accounting for more than 50% of global supply. In 2022, the United States imported 25.1 million MT of cement, supplying 21% of the U.S. market, which totaled 120 million MT. The U.S. Geological Survey indicates that between 2018 and 2021, the four largest import sources of cement were Canada, Turkey, Greece, and Mexico, in that order, accounting for a combined 75% of total cement imports. Over the past decade, U.S. cement consumption increased each year. U.S. cement production also increased yearly, albeit at a slightly slower pace (Figure 2). Figure 2. U.S. Cement Production and Consumption Million metric tons 120 100 80 40 2 OD Ni ml - t W1 r-- CC c' r N t ,-l x- t-4 t. ,- ,4 r-4 r4 c-1 N N -N N N NJ - N4t9 N N } Ni, N ' N N ' Production U Consumption Source: U.S. Geological Survey, Mineral Commodity Summaries, Cement Statistics and Information. Demand for cement is cyclical and depends on the level of new construction-an interest-rate sensitive sector. Ready- mix concrete producers account for up to 75% of the industry's annual shipments. Ready-mix concrete is used in varied construction and infrastructure activity (e.g., industrial, residential, and transportation-related). Recent data trends in demand for cement have provided conflicting results. For example, U.S. durable goods shipments of nonmetallic mineral products-an indicator of cement and concrete demand-rose 1.8% year-to-date in September 2023, compared with the same period in 2022. By contrast, the value of U.S. residential construction spending- another determinate of demand for building materials-fell 2.1% year-to-date in September 2023, compared with the same period in 2022. Economic forecasts from the Portland Cement Association (PCA) estimate cement demand to decline 2.9% through 2023-the first time in over a decade-as the U.S. 0 Source: CRS from Ankit Kalanki and Dongyi Wang, Bringing Low- Carbon Cement to Market, Third Derivative, June 30, 2022.