Cement is the basic binding agent used to bind water, aggregates, and sand in the production of ready mix concrete. The principal sources of demand for cement are public infrastructure, commercial construction, and residential construction, with public infrastructure accounting for nearly 50% of cement demand. Because of cement’s low-value-to-weight ratio, transportation costs limit the geographic area in which each producer can market its products profitably. Therefore, the U.S. cement industry comprises numerous regional markets rather than a single national market.
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