Morocco October cement sales down 18.6% YoY

Morocco’s cement market continues to contract with October sales falling by 18.63 per cent YoY, according to data from the Ministry of Housing, Planning and Urban Policy.

While the Doukkala-Abda region noted the largest increase in cement sales of eight per cent to 887,179t in October, the key Greater Casablanca market registered a 12.3 per cent YoY drop to 1.637Mt.

The slide is closely related to the slowdown in activity in the real estate and public works markets. The government’s MAD15bn cut in its capital budget and the tightening of licensing relating to self-construction projects have impacted the construction industry significantly. It is expected that public works investment will decline by six per cent to MAD114.4bn in 2013.

In addition, new taxes on sand and concrete rebars in early 2013 as well as a special tax on cement the previous year have seen construction costs soar.