SE Asia towards oversupply?

Published 20 June 2016

The southeast Asian cement market has seen rapid demand growth in recent years. Backed by favourable macroeconomic trends, it is likely to remain one of the fastest-growing cement markets. Many cement producers, both local and international, performed very well in this region and are keen to expand their existing capacity, while for others entering these enticing markets has become a priority. By The Jakarta Advisory Group, Indonesia.

Fast-growing southeast Asian markets are attracting new entrants with plans for expansion

On a regional level, southeast Asia has experienced a supply surplus for the past two years. While overcapacity is mainly concentrated in Vietnam and Thailand, almost all other countries in the region import clinker and cement to meet local demand. The remaining surplus is exported to Bangladesh, Sri Lanka, eastern parts of Africa and even South America.

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