Dominican cement sector to near 6 million tons on infrastructure projects and exports

According to CW Research's 2018 update of the Dominican Republic Cement Market Report, domestic cement demand is projected to increase to 5.8 million tons a year in 2023, rising at an annual average rate of almost six percent.

This positive trend will be supported by increasing cement exports to neighboring Caribbean markets, coupled with cement-intensive infrastructure projects, both road- and energy-related.

The promising outlook for cement consumption in the coming years follows a growth cycle that dates back to 2013. Over that period, the construction sector accounted for almost a double-digit share of the GPD. From 2013 through 2018, it has grown at a yearly average of almost four percent, despite a 2017 plagued by a slump in investments in mega projects.

A compact and saturated market

The Dominican cement market landscape can be described as consolidated, with most manufacturers being part of large cement companies. There are eight cement manufacturers in the country (including a white cement plant) ÔÇô each operating only one cement plant (both integrated and grinding ones) ÔÇô with a combined cement capacity of 7.7 million tons per years, and a clinker production of 4.5 million tons. The largest cement manufacturer operating in the country is Cemex, which owns a cement plant and export terminals.

"The market is currently struggling with overcapacity. With cement production levels outstanding that of domestic consumption, Dominican Republic is a net exporter of cement, and one of the few at the regional level. That makes it the preferred import source for countries in the region where production does not meet demand,ÔÇØ observes Raluca Cercel, CW Group's Associate.

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