Morocco’s 2013 consumption forecast to fall 8%

The Moroccan cement market is expected to end the year significantly down. At the end of 2012, the country noted an 11.5 per cent decline in housing starts, impacting on cement demand going forward, according to a report by BMCE Capital. In late April, cement sales fell 16.5 per cent and this figure was followed by a 14.5 per cent cut one month later.

For July, consumption is not expected to recover as the country enters Ramadan and other religious holidays will further depress demand until September. The research house forecasts total consumption in 2013 to register an eight per cent fall.

The decrease comes at a particularly inopportune moment for cement producers. Between 2006-12, they increased production capacity to 8.2Mta, reflecting a CAGR in capacity of 8.8 per cent during the period and today, this build-up has led to overcapacity and a squeeze on EBIT margins.