Asphalt in China

Demand in China to rise 5% annually through 2012
Demand for asphalt in China is expected to rise 5.0 percent annually through 2012 to 16.8 million metric tons. Growth will be supported by increasing construction expenditures fueled by continuing urbanization and modernization. In particular, nonbuilding construction spending will be the leading driver of asphalt demand growth going forward. Central and local governments will continue to invest extensively in asphalt consuming infrastructure projects such as highway and other paved surface construction. Such investment is part of longer-term development plans, but will also be accelerated by spending included in China’s stimulus package designed to offset the effects of declining trade volumes and urban real estate market corrections on the domestic economy.

Gains in paving market to outpace roofing
Asphalt consumed in the manufacture of paving products in China is forecast to increase 5.4 percent annually through 2012. Rising expenditures on new road construction, as well as the maintenance and repair of a large and rapidly expanding stock of paved roads, will boost paving asphalt demand.

Demand for asphalt used in roofing products in China is expected to expand 4.0 percent per year through 2012. Growth will be driven by increases in building construction expenditures. Asphalt shingles represent the fastest growing material used in sloped-roof applications in China, and will benefit from the ongoing Flat to Slope roof conversion project. Rising construction expenditures on residential, office and commercial, and industrial buildings will benefit demand for low-slope asphaltic roofing, such as modified bitumen membranes and built-up roofing. However, short-term gains will be restricted as urban real estate markets experience a correction following a period of overheating and the Chinese manufacturing sector adjusts to lower levels of global demand.

Southwest, Northwest regions to see fastest gains
Asphalt markets in the six regions that make up China vary considerably, reflecting differences in levels of construction activity, demographics, industrial output and economic development. The Central-East is expected to remain the largest regional asphalt market in China through 2012, fueled by increases in regional construction expenditures. However, asphalt consumption is forecast to climb at a much faster pace in the Southwest and Northwest, benefiting from the government’s Great Western Development strategy, which aims at improving the infrastructure and overall economic development in these areas.

 INTRODUCTION                    
 
I. EXECUTIVE SUMMARY
 
II. MARKET ENVIRONMENT
      General
      Economic Overview
       Recent Economic Performance
       Economic Outlook
      Demographic Overview
       Population
       Households
      Industrialization & Manufacturing Trends
      Labor Force & Employment Trends
      Personal Income & Expenditures
      Banking System & Regulations
      Currency Exchange
      Nonbuilding Construction Outlook
       New Construction
       Improvements & Repairs
       Transportation
      Building Construction Outlook
       Residential
        New Housing
        Additions & Alterations
        Maintenance & Repairs
        Housing Stock & Living Space
       Nonresidential
        New Construction
        Additions & Alterations
        Maintenance & Repairs
        Building Stock
      The Eleventh Five-Year Plan
      Legal & Regulatory Issues
      Technology Trends
      Competing Materials
      World Outlook
      Foreign Trade
     
III. PRIMARY ASPHALT
      General
      Supply & Demand
      Primary Asphalt Types
     
IV. ASPHALT PRODUCTS
      General
      Paving
       Asphalt Cement
       Asphalt Emulsions
       Cutback Asphalts
       Other Paving Asphalts
      Roofing
       Built-Up & Roll Roofing
       Modified Bitumen Roofing
       Asphalt Shingles
       Other Roofing Asphalt Products
      Other Asphalt Products
     
V. ASPHALT PRODUCT MARKETS
      General
      Nonbuilding Construction
       New
       Maintenance & Repairs
      Nonresidential Building Construction
       New
       Improvements & Repairs
      Residential Building Construction
       New
       Improvements & Repairs
      Other Markets
     
VI. REGIONAL TRENDS
      General
      Regional Demographic & Economic Trends
       Population Patterns
       Economic Outlook
      Construction Expenditures
       Nonbuilding Construction Expenditures
       Nonresidential Building Construction Expenditures
       Residential Building Construction Expenditures
      Regional Asphalt Demand
       Central-North
        Overview
        Asphalt Demand
       Northeast
        Overview
        Asphalt Demand
       Central-East
        Overview
        Asphalt Demand
       Central-South
        Overview
        Asphalt Demand
       Southwest
        Overview
        Asphalt Demand
       Northwest
        Overview
        Asphalt Demand
       
VII. INDUSTRY STRUCTURE
      General
      Industry Composition
      Market Share
      Foreign Participation in the Chinese Market
       Legal & Regulatory Issues
       Joint Ventures                      164
       Wholly Owned Foreign Enterprises
       Representative Offices
       Exporting to China
      Cooperative Agreements
     

Company Profiles
       Anglo American plc
       Bouygues SA
       Caltex Corporation, see Chevron Corporation        
       Chevron Corporation
       Colas SA, see Bouygues SA                 
       China National Offshore Oil Corporation
       China National Petroleum Corporation
       China Offshore Bitumen Company Limited,
        see China National Offshore Oil Corporation      
       China Petroleum & Chemical Corporation
       China Petroleum Sales Jiangsu Company Limited,
        see PetroChina Company Limited             
       CNOOC Bitumen Sichuan Limited,
        see China National Offshore Oil Corporation      
       Dalian West Pacific Petrochemical Company Limited,
        see PetroChina Company Limited and Total SA      
       Exxon Mobil Corporation
       Foshan Zhongyou Gaofu Petroleum Company Limited,
        see China National
        Petroleum Corporation                        
       Guangyuanfa Elf Bitumen Company Limited, see Total SA
       Neste Oil Oyj
       Panjin Northern Asphalt Company Limited
       Panjin Nynas North Bitumen Company Limited,
        see Panjin Northern
        Asphalt Company Limited                       
       Panjin PetroChina Liaohe Asphalt Company Limited,
        see PetroChina Company Limited             
       PetroChina Company Limited
       Qinhuangdao Zhongyou Petrochemicals Company Limited,
        see PetroChina Company Limited             
       Rizhao Lanshan Caltex Asphalt Company Limited,
        see Chevron Corporation                
       Royal Dutch Shell plc
       Sanshui Yihao Asphalt Company Limited
       Shandong Befar Group Company Limited
       Shandong Huifeng Petroleum & Chemical Company
       Shandong Qingyuan Group Company Limited
       Shanghai Pusheng Asphalt Concrete Limited,
        see Anglo American plc                 
       Shell China Limited, see Royal Dutch Shell plc      
       Shell Road Service Shanghai Company Limited,
        see Royal Dutch Shell plc               
       Sinopec Corporation, see China Petroleum & Chemical Corporation
       SK Energy Company Limited
       Tipco Asphalt Public Company Limited, see Bouygues SA
       Total SA
       Weifang Hongrun Petrochemical Auxiliary Company
       Wenzhou Zhongyou Fuel Petrochemical Company Limited,
        see China National Petroleum Corporation        
       Xinjiang Bazhou Tianyuan Petrochemical Company
        

LIST OF TABLES               

SECTION I -- EXECUTIVE SUMMARY
         Summary Table
 
SECTION II -- MARKET ENVIRONMENT
        1 Gross Domestic Product of China
        2 Population of China
        3 Households in China by Region
        4 Manufacturing Value Added in China
        5 Urban Labor Force & Employment Trends in China, 1997-2007
        6 Personal Income & Expenditures in China
        7 Interest Rates in China, 1997-2007
        8 Chinese Currency Exchange Rates, 1997-2007
        9 Nonbuilding Construction Expenditures in China
        10 Paved Roads in China by Region
        11 Building Construction Expenditures in China
        12 Residential Building Construction Expenditures in China
        13 Housing Stock & Living Space in China
        14 Nonresidential Building Construction Expenditures in China
        15 Nonresidential Building Stock in China
        16 World Asphalt Demand by Region
        17 Asphalt Foreign Trade in China
 
SECTION III -- PRIMARY ASPHALT
        1 Primary Asphalt Supply & Demand in China
 
SECTION IV -- ASPHALT PRODUCTS
        1 Asphalt Demand in China by Product
        2 Paving Products in China -- Asphalt Demand by Type
        3 Asphalt Cement Demand in China
        4 Asphalt Demand in Asphalt Emulsions in China
        5 Asphalt Demand in Cutback Asphalts in China
        6 Asphalt Demand in Other Paving Products in China
        7 Roofing Products in China -- Asphalt Demand by Type
        8 Built-Up & Roll Roofing -- Asphalt Demand in China
        9 Modified Bitumen Roofing -- Asphalt Demand in China
        10 Asphalt Shingles -- Asphalt Demand in China
        11 Other Roofing Products -- Asphalt Demand in China
        12 Other Asphalt Products -- Asphalt Demand in China
 
SECTION V -- ASPHALT PRODUCT MARKETS
        1 Asphalt Demand in China by Market & Application
        2 Nonbuilding Construction -- Asphalt Demand in China
        3 New Nonbuilding Construction -- Asphalt Demand in China
        4 Nonbuilding Maintenance & Repairs -- Asphalt Demand in China
        5 Nonresidential Building Construction -- Asphalt Demand in China
        6 New Nonresidential Building Construction -- Asphalt Demand in China
        7 Nonresidential Building Improvements & Repairs -- Asphalt Demand in China
        8 Residential Building Construction -- Asphalt Demand in China
        9 New Residential Building Construction -- Asphalt Demand in China
        10 Residential Building Improvements & Repairs -- Asphalt Demand in China
        11 Other Markets -- Asphalt Demand in China
 
SECTION VI -- REGIONAL TRENDS
        1 Population of China by Region
        2 Gross Domestic Product of China by Region
        3 Construction Expenditures in China by Region
        4 Nonbuilding Construction Expenditures in China by Region
        5 Nonresidential Building Construction Expenditures in China by Region
        6 Residential Building Construction Expenditures in China by Region
        7 Asphalt Demand in China by Region
        8 Central-North Region of China: Asphalt Demand
        9 Northeast Region of China: Asphalt Demand
        10 Central-East Region of China: Asphalt Demand
        11 Central-South Region of China: Asphalt Demand
        12 Southwest Region of China: Asphalt Demand
        13 Northwest Region of China: Asphalt Demand
 
         SECTION VII -- INDUSTRY STRUCTURE
        1 Revenue Data: Selected Asphalt Companies, 2007
        2 Selected Cooperative Agreements
        
LIST OF CHARTS
                 
SECTION II -- MARKET ENVIRONMENT
        1 Population of China by Age, 1997-2017
        2 Urban Unemployment Rate in China, 1997-2007
        3 Interest Rates in China, 1997-2007
        4 Chinese Currency Exchange Rates, 1997-2007
        5 Building Construction Expenditures in China by Type, 1997-2017
        6 World Asphalt Demand by Region, 2007
 
SECTION III -- PRIMARY ASPHALT
        1 Primary Asphalt Flow Chart
 
SECTION IV -- ASPHALT PRODUCTS
        1 Asphalt Demand in China by Product, 2007
        2 Roofing Asphalt Demand by Type, 2007
 
SECTION V -- ASPHALT PRODUCT MARKETS
        1 Asphalt Demand in China by Market, 2007
 
SECTION VI -- REGIONAL TRENDS
        1 Asphalt Demand in China by Region, 2007
        2 Central-North Region of China
        3 Northeast Region of China
        4 Central-East Region of China
        5 Central-South Region of China
        6 Southwest Region of China
        7 Northwest Region of China
 
SECTION VII -- INDUSTRY STRUCTURE
       1 Asphalt Market Share in China by Company, 2007