Aggregate materials encompass a wide range of grained substances crucial to contemporary construction. This category includes sand, gravel, crushed stone, and recycled concrete. Builders highly prize these aggregates for various uses, from ballast to layering. Recently, their demand has surged unexpectedly high.
As a result, shortages of materials like sand (as detailed in this NPR story) have become commonplace, so much so that there are now entire criminal enterprises based on their harvest and distribution. But what exactly has caused this runaway demand, and how should builders prepare themselves if its growth continues?
Aggregates are granular materials used in construction, derived from natural rock materials or recycled by-products. They are fundamental to the construction industry, forming the backbone of concrete, asphalt, and other building materials. Common types include sand, gravel, crushed stone, and recycled concrete.
Aggregates are chosen for their durability, strength, and ability to withstand weathering. They are classified by size and are pivotal in providing stability and support in construction projects, ranging from roads and bridges to buildings and infrastructures. Their selection and testing are crucial for ensuring the structural integrity and longevity of construction projects.
A Whole New World for Aggregate Materials
The new demand for aggregate materials seems simple at first glance. Many countries are rapidly modernizing, needing huge amounts of aggregate for construction growth and infrastructure. Indonesia, Vietnam, and India are all modernizing, but China’s growth has particularly skyrocketed the demand. This won’t surprise anyone familiar with how quickly modern Chinese cities have developed. The increasing use of various construction materials, such as concrete and asphalt concrete, has been pivotal in this rapid development.
In achieving that astonishing rate of construction projects, China used more cement than the United States had throughout the entire 20th century. In the US, the issue isn’t about new players entering the aggregate market, but rather the persistence of old ones. Experts predict the US will increase its aggregate materials consumption by 2.9% annually, reaching 2.8 billion metric tons by 2019. Despite higher demands from other world markets, the US still accounts for about 8% of global aggregates. These materials are crucial for concrete, asphalt, and drainage in construction, underscoring their industry importance. This percentage is likely to stay stable or grow as the US recovers from the 2008 to 2012 Great Recession.
Crushed stone, extracted from quarries, is also facing similar depletion, impacting its availability for concrete mixes and road subbases.
Keep Reading: Is Mercury Illegal to Own? Understanding Regulations.
Prices and Demand for Aggregate Materials
Multiple players at the bargaining table drive up demand and prices for materials. The situation gets more complicated with the worldwide supply of aggregate materials rapidly diminishing. This is evident in the recent astonishing consumption of sand. Moreover, some groups are resorting to dangerous, illegal means to procure the material. Gravel reserves have also hit unprecedented lows. Coarse aggregate, such as gravel, plays a crucial role in determining the size and strength of concrete mixes, making its depletion particularly concerning. Crushed rock, extracted from quarries, is also facing similar depletion, impacting its availability for concrete mixes and road subbases.
The issue in maintaining supply is two-fold. For one, there’s no getting around the fact that the Earth only has so much to offer in terms of sand, gravel, and other aggregates. Though the planet naturally produces these substances, it does so far too slowly to keep up with global demand. The second part of the problem revolves around the fact that mining for granular materials is terrible for the environment, making the use of recycled aggregate increasingly important. The NPR story linked above describes how certain countries – like the United States – are responding to this by scaling back on the creation and maintenance of aggregate mining facilities.
Aggregate Materials in Other Countries
Other countries see their riverbeds, forests, and farmlands destroyed for aggregate materials. Many trying to stop such mining lack the necessary infrastructure. They can’t effectively prevent it. Resource stripping happens dangerously, ignoring environmental harm. Some propose creating more fill material to meet demand. Yet, artificial aggregates are more expensive and of lower quality. The recycling rate of aggregates doesn’t meet demand. Consider this: a building constructed today might stand for 20, 50, or even 100 years. During that time, its aggregates are out of use, making recycling an unrealistic solution.
Looking Forward to Global Demand for Construction Aggregates
Global demand for aggregate materials continues to rise, with no end in sight until depletion. Experts predict global consumption will surpass 66 Gt by 2022. Consequently, builders worldwide should anticipate more frequent shortages and price increases each year. While this outlook may seem bleak for businesses dependent on aggregates, preparedness can brighten the future. Recycled concrete offers a sustainable, cost-effective alternative to traditional aggregates, reducing waste and meeting the construction industry’s need for affordable substitutes. Aggregates are combined with cementing agents to form concrete, which is essential in enhancing the strength and functionality of the final product in various construction applications.
Did you know some airlines buy fuel in bulk when prices drop? Take American Airlines in 2014. They bought hundreds of millions of gallons at low prices, saving over $600 million. Your business may not buy as much, but stocking up on aggregates now, while cheap and plentiful, could be wise. As availability drops and costs rise, procuring the Portland cement concrete aggregates you need for your projects is going to become more and more difficult; therefore, it would be wise to stockpile as much as you can while it’s still possible to do so.
Summary
We hope that this overview of the current aggregate market has given you valuable insight into the best material-purchasing path for you and your business, including the importance of natural sand in various construction applications. This is a topic of great importance to Certified MTP, as many of our products assist in aggregate testing and processing of materials. If you have any further questions about the aggregate market, please feel free to get in touch with one of our friendly and knowledgeable industry experts.
