Spain’s cold spell continues as January demand drops 21.5% YoY

Spanish cement producers have had a frosty start to the year as cement consumption continues to fall. January 2013 data show a 21.5 per cent decrease to 892,783t from 1.138Mt recorded in January 2012, according to the country’s cement association Oficemen.

Local cement producers have also cut output by 30.7 per cent to 948,443t when compared to the 1.369Mt manufactured during January 2012.

“If 2012 was one of the worst years ever known the cement industry in our country, starting in 2013 does not improve expectations, as we started the year with consumption levels that confirm the forecast fall by around 20 per cent, " according to Aniceto Zaragoza, Oficemen’s CEO.

News from the construction industry confirms this view as competitive bidding on public works fell by 45.5 per cent last year to a record low of EUR5.196bn, according to Seopan. The Ministry of Development has also published data that through November 2012, 41,606 new housing permits were granted when Spanish property market is expected to stabilise at around 275,000 new homes annually.