Spain: November demand up, 2014 largely stable

Spain: November demand up, 2014 largely stable
19 December 2014

Cement consumption in Spain rose 2.7 per cent in November to 902,312t, according to the latest data of Oficemen.

The November data take domestic consumption in the first 11 months of 2014 to 10,009,922t, slipping by 0.3 per cent on the previous year’s figure.

The cement association expects full-year demand to reach just below the 11Mt mark, similar to consumption recorded in 2013. Although Spain’s market is showing signs of stabilisation, Oficemen president, Isidoro Miranda, said activity levels were “extremely low”, which reflects a sector that “has not left the crisis behind by much”. He predicts a “modest recovery”, with a rise of around five per cent in volumes, although the market remains “extremely volatile”.

He also called upon the government to support the industry, which generates some 20 per cent of GDP. He emphasised the importance of stability in energy prices, and in particular the price of power. Spain’s electricity price has seen a cumulative increase of 40 per cent in the past few years, including the 15 per cent that comes in force on 1 January after the country’s energy reforms. The price rises have affected the industry’s ability to compete in the export markets, which have provided a lifeline to cement producers in the face of the domestic downturn. They have strongly developed their export business to offset losses in their home market. Spain represents 29 per cent of all European exports outside the EU, according to Mr Miranda.

Published under Cement News

Tagged Under: Exports Consumption Spain