Morocco’s November cement sales up 29.7%

 Morocco’s November cement sales up 29.7%
23 December 2013

Cement sales in Morocco increased by 29.7 per cent in November 2013 compared to November 2012. However, on a year-to-date basis, sales continue to decline by 6.52 per cent.

The fall in cement consumption has been attributed to several factors. The National Federation of Developers points out that the major factor impacting the sector is the lack of liquidity due to the banking crisis. The continued weakness in real estate demand and the slowdown in public works have affected the demand for cement in the country. Public works have been affected by a MAD15bn (US$1.8bn) cut in the government’s capital budget.

In addition, following tight licensing in self-construction, there has been less building in this segment.

Furthermore, since January 2013, taxes on sand and rebars as well as an increase in taxes on cement dating from the Finance Act 2012 have led to a slowdown in cement demand. As a result, the market is not expected to pick up in December 2013.

When broken down by region Guelmim-Es-Smara recorded the largest decline in cement sales. During the Jan-Nov period, they fell 42.9 per cent from 250,343t to 143,021t YoY. Greater Casablanca, Morocco’s largest market saw a 9.8 per cent contraction to 1,987,000t over the period. At the other end of the spectrum, Doukkala-Abda noted a market expansion of 10.9 per cent to 981,133t.

Published under Cement News

Tagged Under: Morocco Consumption