National cement production declines by 5.6%, Indonesia

National cement production declines by 5.6%, Indonesia
Published: 23 October 2006

Total volume national cement production has declined by 5.6% to 24.27Mt during January-September this year from 25.7Mt during the same period of last year.

The lower production was due to the lower domestic demand until last August.

The data of Indonesian Cement Association (ASI) shows that the national cement consumption during the first nine months has declined by 2.4% to 23.55Mt from 24.13Mt during the same period of 2005.

The export sales have declined by 31.8% to 1.75Mt from 2.56Mt during that period.

But the export of clinker has jumped by 57.1% from 2.35Mt to 3.69Mt.

The national clinker production has increased by 1.2% from 25.57Mt to 25.88Mt.

The lower national sales of cement was partly due to the lower cement demand in Java during the first nine months of 2006 to 14.21Mt from 15.34Mt during the same period of 2005.

Even though the market has not recovered, the industrial players are optimistic the market will be better next year.

It can be seen from the investment in this industry to anticipate the possible scarcity of demand in 2009.

The Chairman of ASI Urip Timuryono said presently that PT Semen Gresik Tbk and PT Holcim Indonesia Tbk keep planning to develop their new facilities.

ASI predicted that the national cement production will decline by 2.2% this year to 30.80Mt from 31.49Mt last year.