Siam’s cement business outlook

Analysts estimate that Siam Cement’s sales volume will grow 8% on year to 2.69Mt thanks to more construction works in the domestic market, despite the rainy season in the third quarter. However, sales value will likely fail to reflect all of the gains in volume, as cement prices were under pressure from fierce competition in the industry and government controls.

Capital Nomura Securities expects the company’s cement sales in the quarter to be around THB9.62 billion, almost flat with THB9.58 billion in the same period last year.  Kim Eng said that while petrochemical margins are likely to remain underpressure, the cement business should improve next year as the government plans to initiate infrastructure mega-projects requiring investment of a planned THB1.7 trillion over the next four years.