Peru cement sales fall 4.9% in Feb 2015

Peru’s cement market contracted by 4.9 per cent YoY as dispatches fell from 816,000t to 775,000t in February 2015, according to Asocem, the country’s cement association. In January, cement dispatches increased 1.7 per cent.

"This is mainly due to climatic factors, low public spending, weak private investment and low trust in the government. As in January, heavy rains during February in the highlands and jungle witnessed, "said the cement association.

Public expenditure fell 23 per cent YoY in the first two months of 2015 as regional and local governments cut back spending by 42 and 61 per cent, respectively. This was only partly offset by the national government which raised spending by 27 per cent.

Total cement deliveries (including exports) fell 4.1 per cent to 797,000t when compared with February 2014. In terms of cement exports, 22,000t was shipped to Bolivia, doubling the February 2014 total and a further 3000t to Chile, representing a 25 per cent fall in exports to this country. As a result, total exports reached 25,000t, 68 per cent higher than the15,000t noted the previous year. In addition, 23,000t of clinker was exported to Chile.

Producers supplied four per cent less YoY or 799,000t in February. To bridge the demand-supply gap in the market, Peru imported some 100t from Chile. In February 2014, imports were significantly higher as the country imported 41,000t of cement from Vietnam and 11,000t from Colombia.The level of clinker imports remained roughly stable at 41,000t, which all came from South Korea.

For 2015, Asocem forecasts a 3.5 per cent rise in domestic consumption to 10.707Mt and a similar rise in production, which it expects to reach 11.051Mt.