In the first half of 2019, cement demand recorded conflicting trends across selected markets, according to CW Research’s Cement Country Market Data reporting.
Whereas consumption of cement rose in Peru, it contracted in markets such as Saudi Arabia and Argentina.
“With an expected GDP growth of 3.9% in 2019, Peru offers good perspectives for the cement industry. Private investment, particularly in the mining industry, is replacing large infrastructure projects such as the Pan-American Games, as the main propeller of the construction sector”, notes Carolina Pereira, Business Analyst at CW Group.
In Peru, cement demand increased a little over three percent over the first five months of the year, to just over four million tons, propped by positive macroeconomic conditions. Investors are overall bullish on the country’s construction industry, with business sentiment being overall positive and spending in infrastructure and housing showing a healthy growth. Peru’s mining sector is a leader in terms of construction activity, with a healthy pipeline of projects lined up in this area for 2019.
Conversely, consumption of cement in Saudi Arabia declined over 11 percent year-on-year in the January-May period. While the country’s construction sector is expected to continue a positive performance as the government focuses on diversifying its economic output, the cement sector is still struggling with overcapacity. Moreover, tensions in the region remain high, especially with the ongoing spat between the United States and Iran, and headwinds from the trade war could also affect economic output.
In Argentina, cement demand declined by around eight percent in the first six months of the year when compared to the equivalent year-ago period. The country has been facing a challenging backdrop due to the ongoing recession, with most of the economic indicators performing negatively, including construction. Overall forecasts also remain grim, as the country grapples with high inflation and low investment and consumption.
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.
Find out more about Cement Country Market Data here
Photo Credit: Deensel/Flickr