Adocem reports fall in domestic demand

Adocem reports fall in domestic demand
19 November 2012

The Dominican cement association Adocem reports that this year to date has seen a decline in cement consumption. In the first 10 months of the year, cement demand in the Dominican Republic totalled 2.2Mt, down 8.2% when compared with the equivalent period in 2011. It forecasts a full-year figure of 2.6Mt.

The contraction is attributed to several factors, including lower activity in the construction industry, which was down 0.4% in the first half of 2012, according to the Central Bank.

"Our industry is operating at 40% capacity as it is related to the local market. Moreover, the forecasts for 2013 will largely depend on the state of the economy on situations like the revival of demand for housing and interest rates, "said Mr. Osvaldo Oller, President of Adocem.

The large cement plants in the country continue to increase their efforts to export to minimise the negative impact of declining domestic demand on their operations. So far this year, cement exports have expanded by 35% when compared with 2011. The industry exports around a third of its output every year, mainly to Haiti, but also Jamaica, the Virgin Islands, Guyana and other locations in the Caribbean.

Published under Cement News