Bright 2007 prospects for European cement sector

Bright 2007 prospects for European cement sector
Published: 31 January 2007

Analyst Imran Akram of Deutsche Bank says that the 2007 prospects for the European cement sector are bright, with a 6%-10% price hike anticipated in Western Europe.

In a research note published this morning, the analyst mentions that cement is uniquely positioned among building materials to withstand the decline in US housing via the reduction of low-margin imports.

The analyst says that the key cement producers, namely Cemex, Lafarge, Holcim and HeidelbergCement, are benefiting from robust market positions, pricing power, control over trading networks as well as the high level of consolidation and are likely to continue to do so in 2007.

Deutsche Bank expects cost inflation to be more than offset by prices in the cement sector globally in the current year.