Philippines: robust sales expected to continue

Philippines: robust sales expected to continue
14 March 2016

Robust cement sales are expected to continue this year, with the industry seen growing another 14 per cent on the back of election-related construction expenditure and government spending on public works, Republic Cement and Building Materials Inc president, Renato Sunico, told The Star.

“We in the industry feel that the growth will continue specially being an election year. When we look at the pattern in the demand over the years, every time there is an election year, there is a pickup in demand. This time, it’s not only because of the election year but the government is really pushing for a higher budget for infrastructure,” Mr Sunico said.

Last year Philippine cement sales continued their strong rise, advancing by 14.4 per cent to 24.36Mt, according to data from the Cement Manufacturers’ Association of the Philippines (CeMAP). The rise was attributed to large budget funds from the DPWH development and private sector confidence in the government’s plans, as well as new housing projects with low interest rates. Favourable weather conditions also helped drive cement sales.

CeMAP President, Ernesto Ordoñez, has since commented that the positive trend is expected to continue through 2016. Demand is forecast to reach 26.43Mt this year, up 8.5 per cent YoY, according to ICR Research.

Published under Cement News