Scotiabank forecasts 6% growth in Peru’s cement demand

Cement consumption in Peru is predicted to expand by around 6.5 per cent in 2019, according to Scotiabank. The bank attributes the third-consecutive annual rise to a higher level of real estate investment.

This positive evolution would be supported by increased private and public investment expected for this year, said Carlos Asmat, senior analyst of the Department of Economic Studies of the bank. "Private investment would grow partly driven by the performance of mining investment during 2019, which would grow around 14 per cent according to our projections," he said in the bank's weekly report.

“Likewise, public investment would grow again in 2019, but at a slower pace than in 2018, because although we anticipate greater investment from the national government, this would be partially offset by lower investment by subnational governments in the first half of the year. year, due to the learning curve of the new authorities,” he added.

Investment would grow through the concessioned transported infrastructure such as Line 2 of the Lima Metro, the Jorge Chávez Airport expansion and the ports of Salaverry and San Martín.

Last year, cement demand in Peru increased by 3.7 per cent YoY, according to the country’s cement association, Asocem.