Thanks to increased domestic demand, Taiwan’s leading cement producers, including Taiwan Cement Corp. and Asia Cement Corp, saw sales increase by over 15% YoY in April.
Of them, Taiwan Cement’s consolidated sales in April rose over 50% YoY thanks to its acquisition of Prosperity International Holding in mainland China.
By contrast, Chia Hsin Cement was the only producer to register a sharp sales decline in the month.
Thanks to a low comparison base, Lucky Cement Corp. and Hsing Ta Cement Corp. saw April sales jump over 40% YoY.
Taiwan Cement chairman Leslie Koo said domestic cement prices will be hiked at the end of the second quarter of this year at the earliest, by at least 10% to reach between NT$2200 (US$76) and NT$2,300/t. The prospective price hike will help domestic cement producers boost both sales and earnings in the second half of this year.
Because of the growing domestic demand, Taiwan Cement has recently slashed cement exports and focused more on domestic sales. Based on the 13% annual growth in domestic sales of cement, the company expected the local cement industry to see a 10% YoY sales growth.