Peruvian market acceleration

Peruvian cement shipments have shown strong increases for the third month in a row indicating a recovery in public investment and an acceleration in domestic sales.

Shipments reached 418,824t in February 2012, representing an 11.67 per cent YoY advance from 270,562t, the cement producers association (Asocem) reported.

Cement production for the month was 448,199t, up 10.3 per cent on February 2011 (313,013t).

Total shipments (domestic plus exports) for the first two months of 2012 reached 445,707t, an advance of 12.89 per cent over the same period last year when they totalled 280,667t.

Scotiabank analyst Paul Nano said cement showed a double-digit growth for the third consecutive month in February, implying an acceleration of consumption since December.

"This would have as much to do with a recovery of public investment, which has become more visible in February, and with the continued strength of private investment, particularly in real estate," he told Andina news agency.

"This result is in line with previous estimates and in line with our forecast of growth of the construction of nine per cent this year," he said.

Finally, public investment is projected to grow 23% this year and eight percent private investment, and that both would support the expansion of consumption of cement and construction sector. (Source: Gestión, Peru)