Boral sees US housing recovery

Australian market conditions have remained difficult in the quarter to the end of September, though weather conditions have been somewhat better. 

While infrastructure investment has been strong, this has not been sufficient to offset the continued negative impact coming from the residential market. Cement pricing has been weak because of low import parity costs that reflect low bulk shipping rates and a strong Australian dollar. A review of the cement operations is currently underway to reduce costs and to increase flexibility. 

In the United States, the housing market continues to recover from an exceptionally low base. A 28 per cent increase in housing starts in the quarter should begin to show through in increased sales volumes for roof tiles and bricks in the coming months. In Asia, plasterboard volumes wave been disappointing as the growth in Indonesia and Thailand was offset by weaker demand in South Korea and China.