The Mineral Products Association’s (MPA) latest quarterly report shows that the construction mineral market is showing signs of recovery
The MPA’s latest industry survey covers five key areas of the construction mineral market: crushed rock, sand & gravel, asphalt, ready-mixed concrete, and mortar.
The report shows a modest growth in Q3 2024 after a large downturn starting in 2022.
Sand and gravel saw the biggest rise
The survey shows a 0.9% rise in sales of ready-mixed concrete, as well as a rise of 3.7% in sand and gravel and a 2.2% rise in mortar.
Ready-mixed concrete sales also grew in 5 of the 11 reasons across Great Britain, and the South East and West Midlands saw the greatest growth.
This suggests that the market is stabilising, in spite of overall levels remaining low. On a yearly basis, 2024 levels are remaining below 2023 levels, including ready-mixed concrete sales 14.1% lower than 2023, sand and gravel 10.5% lower, and mortar 20.1% lower.
The state of the construction mineral market reflects the whole industry
The housebuilding sector drives sales of around 30% of ready-mixed concrete sales. The lower sales from 2023 are related to how the housebuilding market continues to struggle in its recovery.
Interest rates and pressure on affordability are keeping buyer demand low, which has an effect on the whole industry.
However, government housing targets, along with large projects such as HS2, Hinckley Point C, and Sizewell C are good signs of recovery.
Aurelie Selannoy, director of economic affairs at MPA, said: “The latest data suggests that construction mineral markets may have reached a low point, with early signs of recovery in some regions and markets. Yet, the demand environment remains challenging, with prospects hinging on a recovery in housing, progress on infrastructure delivery, and sufficient funding for local road maintenance.
“As we look toward 2025, we remain cautiously optimistic that an improving economic backdrop will support a gradual return to growth across the industry.”
