Japan: Domestic cement demand in Japan is projected to fall to 30Mt in the 2026 financial year, below the 31Mt recorded in 1964, when Tokyo hosted the Olympic Games for the first time, according to the Japan Cement Association. Demand reached a peak of 86.3Mt in 1990 and has reportedly been declining since then. In the 2024 financial year, it fell for the sixth year running to 32.7Mt, driven by reduced construction activity, labour shortages and work reforms that limited overtime. The industry said that construction projects now take longer to complete, reducing cement consumption and demand.
According to the Japan Times, Mitsubishi Ube Cement will halt production at part of its Kyushu plant in March 2027, converting the area into a recycling hub for waste plastics and other materials. Tokuyama is also suspending some facilities at its Tokuyama plant in Yamaguchi Prefecture, and plans to sell its cement sales business to Taiheiyo Cement.
The association said that lower production could reduce the sector’s ability to respond to a sudden increase in demand for reconstruction supplies following a natural disaster, such as the 2011 earthquake and tsunami.
Masako Sasahara, a senior research analyst at Meiji Yasuda Asset Management, said “The drop in shipments caused by work-style reforms will probably persist for a while. However, replacement demand and new demand tied to public infrastructure and other projects should eventually help put a floor under the decline. Cement demand is expected to increase in the US, Australia and Southeast Asia," adding that expanding exports will be essential to sustaining domestic cement production.
