Spain’s cement consumption increases 11% in 5M17

Cement consumption in Spain has increased 10.8 per cent YoY to 4,887,751t in the first five months of the year, according to Oficemen, the country’s cement association.

A significantly-improved growth rate in May of 15.3 per cent has seen the latest monthly figure reach 1,101,046t and offset the decrease seen in April. If the current growth rate is maintained, it is expected that full-year demand will reach 12.3Mt.

However, date for the rolling year from June 2016 to May 2017 show a more modest market expansion of 2.2 per cent.

"We can not deny that even as things are not going well, the sector is improving modestly,” explains Oficement Vice-President, Isidoro Miranda. "Housing is growing at a rate of 26 per cent, with 13,000 new permits in 2016, and we expect a new growth of 12 per cent – 10,000 permits more – by 2017. This, coupled with a growth of less than 10 per cent in the non-residential building segment has allowed us to start the year in positive values, a trend that we hope to continue in 2018  as some already planned civil works projects are started, "he adds.

While the forecast is positive for the domestic market, Spanish cement producers have seen exports drop by 7.6 per cent in the 5M17 to 3,762,911t. This has offset some of the positive news regarding the domestic market somewhat as plants are unable to lift capacity utilisation rates above 50 per cent, similar to the level achieved in the last five years. Isidoro Miranda attributes this partly to the uncertainty of electricity costs, which is eroding the competitiveness of Spanish producers in international trading.