Iraq’s cement consumption is forecast to increase to over 30 million tons by 2024, according to CW Research’s 2019 update of the Iraq Cement Market Report.
Cement consumption figures in the country are being boosted by strong reconstruction demand.
Between 2010 and 2018, national construction activity registered sustained growth, positively influenced by the country’s reconstruction and rehabilitation programs after defeating ISIS, as well as by ongoing large infrastructure projects. However, Iraq’s economic dependence on crude oil exports could prove challenging.
According to Prashant Singh, CW Group’s Associate Director: “Although Iraq’s GDP is expected to experience an annual growth rate of over of 2.5 percent over the next five years, that is dependent on the outlook for crude oil prices over the same time horizon. Most crucially for Iraq, it is expected to increase production once the OPEC production quota is set to expire in mid-2019, leading to an improvement in potential revenue”.
A young and recovering market
Up until 2003, the 50-year-old Iraqi cement industry was state-owned. From that year onwards, the cement sector split into state plants and private operators. An important milestone was reached when the Lafarge Group entered the domestic cement industry in 2008, with the acquisition of Orascom Industries.
Currently, the status of the Iraqi cement sector reflects all the military conflicts and the international sanctions inflicted during a long period that began in 1990 until recently, which severely impacted the sector. Now, the industry is struggling to pick up after more than a decade of low performance. Cement production, which has been growing robustly in the past five years, is forecast to experience a reduced albeit still impressive expansion until 2024.
Southern Cement State Company, Lafarge Iraq, and Faruk Holding are some of the companies with operating facilities installed in the country. Recently, producers such as Attock Cement and Lucky Cement from Pakistan have expressed interest in entering the Iraqi cement market in the forthcoming years.
The Iraq Cement Market Report, part of CW Research’s Cement Industry Country Report series, meets the country-level cement market research needs of small and large businesses, analysts and governments. The reports cover cement volume trends in detail, analyzing trade flows, cement demand and production (historical and a five-year outlook), per capita consumption, and the competitive landscape, including company profiles, cement production facility details, including past and announced brownfield production increases and greenfield projects. Cement Industry Country Reports also cover demand drivers, including macro-economic and construction sector dynamics, for the specific country. Industry reports are presented in an objective, easy-to-understand format, providing hard-to-find answers to top market research questions.
More information about the report can be found here: https://www.cwgrp.com/cemweek-reports/product/289-iraq-cement-market-report-forecast-through-2024