Siam City Cement Co (SCCC) maintains a positive outlook for cement demand in its domestic market of Thailand despite government infrastructure project having been delayed due to current political instability.

Thailand’s second-largest cement producer expects cement demand to increase by five per cent as government-supported infrastructure should resume following next year’s general election, according to a report by Asia Plus Securities.

An increase in demand through 2013 has helped lift cement prices, SCCC noted. Meanwhile, in terms of production costs, the company has made a forward contract for 80 per cent of its coal purchase in 2013 at a 10 per cent lower price than last year.

SCCC’s four kiln lines ran at full capacity in the first nine months of the year. The reopening of Kiln 1, which has been inactive since 2008, has just completed test runs and commercial production is expected in 2014. This will enable SCCC to increase capacity by 1.5Mta.