Cement demand in Spain falls 9% in January

Cement demand in Spain falls 9% in January
26 February 2020

Spanish cement consumption declined 8.6 per cent in January 2020 to 1,035,484t when compared with the year-ago period. The latest fall represents the third-consecutive month of decreases, not seen since the last quarter of 2016, according to Oficemen.

In the rolling year until January 2020 the growth of domestic cement demand slipped 1.4 percentage points to 4.5 per cent YoY.

"The beginning of this year maintains the deceleration path initiated in the last half of 2019," explained Oficemen President, Victor García Brosa. “Housing, which has been an engine in recent years, is also slowing. Given the practical absence of public works, it seems that the cement sector, and with it the construction sector, will continue at a low level. Public works cannot continue to stop. Infrastructures must fulfill their function of economic revitalisation.”

Meanwhile,  cement exports continue to fall, resulting in a straight downward trend for 32 months. The decline in exports saw exports fall by 6.8 per cent to below the 0.5Mt mark. In the 12 months to January 2020, the drop reached 20 per cent, or 1.7Mta.

Imports have contracted by 18.5 per cent YoY in January 2020. However, this drop is expected to be only temporary as the introduction of a new phase of the EU emissions trading scheme (EU ETS) in 2021 is forecast to prompt a strong rise in imports of countries not subject to the scheme – eg Turkey and Algeria. In the rolling year until January 2020, imports continue to top the 1Mt, doubling the previous-year’s volume.

Published under Cement News