Peru domestic cement consumption

Peru domestic cement consumption
Published: 04 June 2004

Peru’s domestic cement consumption will rise by around 6% this year, according to a report released by local bank Banco Wiese Sudameris (BWS). Although public expenditure will not contribute significantly to sector growth, what will be important is the steadily improving performance of the private sector, especially private construction, said BWS.

BWS said government housing programs have reactivated the cement industry, which grew 13.8% in 2002, 1.9% in 2003, and 8.2% in the first four months of this year.

The report went on to say that this recovery has increased the cement companies’ gross profits, but it has not changed their market share, with Cementos Lima holding 44% followed by Cemento Andino (21%), Cemento Pacasmayo (18%), Cemento Yura (12%), Cemento Sur (3%) and Cemento Selva (2%).

In the medium term, BWS expects that private sector infrastructure projects and government concession projects for the highway, ports and airport sectors, as well as housing programs, will continue to benefit the industry, which will seek to diversify revenue sources through new foreign markets and a greater product offering.