Property boom, gov't infra spending boost 2012 cement sales
MANILA, Philippines - Sales of cement hit a record volume in 2012 boosted by the real estate boom and government infrastructure spending, an industry association said on Wednesday, January 23.
The Cement Manufacturers' Association of the Philippines (CeMAP) president Ernesto M. Ordoñez said 18.4 million metric tons (mmt) of cement were sold in 2012, reflecting a 17.5% increase from the previous year's 15.6 mmt.
The pace of annual growth in 2012 was fastest in 15 years, and eclipsed the 1.1% recorded in 2011, the year the government pulled back on its infrastructure spending.
The last time cement sales breached that 2012 growth level was in 1997, when volumes increased 17.7%. Cement sales after the 1997 Asian financial crisis reached 15.2 mmt, then fell to 11.6 mmt in 2005 before recovering to 15.5 mmt in 2010.
In the 4th quarter 2012, 4.4 million tons of cement were sold, higher by 10% than the same volume sold in the same period in 2011.
The group expects cement sales to remain strong in 2013, an election year. Ordoñez noted that cement demand traditionally increases during an election year.
CeMAP groups CEMEX Philippines, Holcim Philippines Inc, Lafarge Republic Inc, Northern Cement Corp, Pacific Cement Philippines Inc and Taiheiyo Cement Philippines Inc. - Rappler.com