German cement consumption is expected to decline by 1.6 per cent YoY in 2105 to around 26.7Mt, as local cement producers no longer anticipate being able to compensate for lower market demand recorded in the first quarter of this year.
The forecasts released by the German Cement Works Association VDZ yesterday show that due to subdued markets in April and May, volumes are unlikely to regain enough ground to make up for the slower performance so far in 2015.
Lower level of industrial construction investment
The VDZ goes on to note that early indicators also present a gloomy picture, particularly in the industrial construction sector. "At present there seems to be a lower level of investment in new commercial buildings than in other areas," said Gerhard Hirth, president of VDZ. "At least in this highly important construction sector the positive overall economic situation is not reflected by the cement market," he adds.
Housing and civil engineering positives
In contrast is continued dynamic developments in the German housing sector. In particular, demand for multi-storey residential buildings is constantly increasing. "And we are expecting the situation in this segment to remain positive. What's more, the investment campaign announced by the Federal government leads us to believe that in the medium term the civil engineering branch will also provide positive impulses for the cement market," Hirth highlights.
