From January to September 2019, cement consumption recorded mixed trends across selected markets, according to CW Research’s Cement Country Market Data reporting.
Whereas consumption remained flat in Japan, it slipped in Thailand, and rose in Indonesia.
“In Indonesia, the investment in major infrastructure plans – particularly President Joko Widodo’s announced mega-project for a brand-new national capital in the province of East Kalimantan, on the island of Borneo – continues to provide a solid incentive for domestic cement consumption,” underlines Carolina Pereira, Business Analyst at CW Group.
Cement demand in Japan continued unchanged between January and September after experiencing a solid increase of 3.3 percent in the first quarter compared to the same period in 2018. As the Tokyo 2020 Summer Olympics close in, Japan continues to invest in related infrastructure and in the improvement of its transportation network. To accommodate the flux of tourists and fans coming for the Olympic Games, the hospitality industry is also investing in new accommodations.
In Thailand, consumption of cement recorded a slight contraction in the first nine months of the year compared to the same period of 2018. Volatility caused by the March 2019 elections had a negative impact on the construction sector, while the consolidation of the new government after a protracted coalition-building period has debottlenecked public investment in infrastructure. In the coming years, the Thai construction sector is expected to revolve around the infrastructure sector, as government investment in air and land transportation and affordable housing continues.
Conversely, Indonesia witnessed a 1.3 percent annual expansion in cement demand from January through September 2019. After a significant decline in the second quarter, caused by the election period and the Eid al Fitr holiday, demand bounced back in the beginning of the third quarter, only to stabilize in August. Public investment in mega infrastructure projects and affordable housing remains the main driver of construction activity in that market.
CW Research’s Cement Country Market Data reporting covers monthly cement volume trends across the globe. The service provides data and statistics on monthly demand and supply volumes for the largest cement producing and consuming markets around the world. Presented in an objective, easy-to-understand format, the Cement Country Market Data is an indispensable tool for producers, suppliers, traders, investors and end-users that need to quickly understand developments in the world cement markets.
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