Cement makers expect flat growth this year
Cement manufacturers have turned optimistic and now expect this year demand to match last year’s level, banking on higher infrastructure spending in the final quarter.
MANILA, Philippines — Cement producers anticipate flat demand growth for the year, relying on improved infrastructure spending in the final quarter. CeMAP president John Reinier Dizon stated this to reporters, adding that demand is expected to remain flat or drop slightly due to inadequate government spending. Last year, the industry saw 34 million metric tons of cement demand.
From January to September, demand declined by 2-3% year-over-year. The sector faces challenges such as the Middle East conflict and ensuing energy crisis, as well as stricter standards following last year’s flood control corruption revelations. Cement makers are also monitoring the peso’s decline against the dollar, given that fuel imports contribute to production costs.
Nonetheless, optimism exists for the fourth quarter, with hopes for increased government infrastructure spending. Dizon expressed confidence that CeMAP anticipates a stronger fourth quarter than last year's. The organization remains hopeful for next year, which precedes an election, when government infrastructure expenditure typically surges.
With the economy projected to grow by 5-6% in 2027, cement demand is expected to expand proportionally. However, high inflation poses a significant hurdle. Despite projected demand being below the local cement industry’s production capacity, companies are advancing with expansion initiatives.
Written by urgent.news from Philippine Star Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
