Spanish cement demand drops 19% in 2013

Spanish cement demand drops 19% in 2013
29 January 2014

The Spanish cement market contracted by a further 19.2 per cent in 2013, bringing national cement consumption to 10.981Mt from 13.597Mt the previous year, according to Oficemen, the cement association of Spain.

The country’s cement producers, who experienced the sixth-consecutive year of double-digit decreases, were forced to rein in output by 14.9 per cent, producing 13.17Mt during the year.

Exports, which provided a lifeline against slinking domestic sales, saw a notable slowdown in the final months of the year. "While until September 2013 exports grew, thanks to the efforts of the industry, at an average rate of 34 per cent, in the last quarter there has been a slowdown, reducing volumes by 12 per cent against the 2012 figure. It is a percentage clearly insufficient to offset the decline in domestic demand, "explains Oficemen CEO, Aniceto Zaragoza.

For 2014, the cement association forecasts a 7-8 per cent decline with positive changes to the market expected only from 2015 onwards. However, any market growth is dependent on a commitment by the country’s government to increase public investment and provide a stable environment in terms of electricity pricing. “We also expect a recovery in the housing segment, which has fallen to extremely low levels for a country like ours, " adds Mr Zaragoza.

Published under Cement News

Tagged Under: Spain Consumption