China and Cement
A bubble that will soon burst?
Exhibit 1 below needs little commentary. In 2007 Spain’s construction industry consumed 1,300kg of cement per capita. That bubble burst, big time.
“Our analysis indicates that such high cement consumption is unsustainable and all countries where cement consumption has exceeded 1000kg per capita for a number of years has [sic] gone through a construction crisis sooner or later,” said Société Générale. Quote is from this article on Cemnet.
Exhibit 1: Chart courtesy of Goldman Sachs via Zerohedge.