MANILA, Philippines – Cement manufacturers are anticipating higher demand in 2012 amid government’s pronouncements that infrastructure spending will be prioritized this year.
In a recent interviews with reporters, Ernesto Ordonez, president of Cement Manufacturers of the Philippines (CEMAP) said they are pinning their hopes on more road projects from the Department of Public Works and Highways (DPWH) this year after most government infrastructure projects were put on hold in 2011.
“The budget of the DPWH would be bigger this year. Last year, some of its budget was unspent,” he said.
In 2011, cement demand inched up by only 1% to 15.599 million metric tons from 15.449 MMT in 2010.
Had it not been for last minute construction activities in the last quarter of 2011, when the government fast tracked spending of its budget for infrastructure projects, cement demand would have likely been in the negative.
Cement products had a sudden surge in demand in the 4th quarter of 2011, making up for the lackluster performance in the first three quarters. Cement demand rose 20% in the last quarter compared to the same period in 2010.
Ordonez said cement demand should improve even further this year as infrastructure projects come on stream. – Rappler.com