Colombian cement market contracts 4% in August

Colombian cement market contracts 4% in August
06 October 2020

Cement dispatches in Colombia slipped 4.3 per cent to 1.052Mt in August 2020 from 1.099Mt in August 2019, according to the country’s statistics office, DANE.

The fall in consumption was mainly driven by an 18 per cent drop in the offtake by ready-mix concrete companies, also reflected by a 11.8 per cent decrease in bulk dispatches. Bagged sales slipped by 0.7 per cent, driven by a 13.1 per cent decline in sales to the construction and contractors segment. Sales to the retail sector edged up by one per cent.

The markets of Bolivar and Bogotá saw the largest contraction with decreases of 20.4 and 18 per cent, respectively. Magdalena saw a decline of 16.6 per cent. In addition, the key markets of Cundinamarca and Atlántico reported a drop in sales of 15.4 and 15.7 per cent, respectively. The small markets of Quindio, Nariño and Casanare all enjoyed growth - 24.4, 18.2 and 17.5 per cent, respectively.

Output from Colombian cement producers reached 1.096Mt in August 2020, down 6.8 per cent YoY, from 1.175Mt.

January-August 2020
In the January-August 2020 period, domestic cement consumption declined by 17.2 per cent to 6.757Mt from 8.163Mt in the year-ago period.

Bulk sales in the eight-month period declined by 24.1 per cent while bagged sales saw a 14 per cent contraction. Ready-mix concrete sales were down 30.1 per cent, followed by construction companies and contractors, which reported an 18.9 per cent drop in sales. The retail sector reduced its offtake by 11.7 per cent.

Production fell by 16 per cent YoY to 7.12Mt in the 8M20 from 8.479Mt in the equivalent period of the previous year.

Published under Cement News