Spain: monthly demand up but slowdown noted

Spain’s cement consumption in the first nine months of 2015 increased by 4.8 per cent, but the growth rate decelerated in the past three months, according to Oficemen, the country’s cement association. At the end of June 2015, the market expanded by 8.6 per cent. The slowdown in growth has been attributed to a drop in public works.

While September demand posted an increase of 3.1 per cent to 982,379t, the CEO of Oficemen, Aniceto Zaragoza expressed his concern: "We are witnessing with great concern a slowdown in cement consumption. After a first half in which we began to glimpse some recovery, the last three months have shown some falls or such modest growth that we seem back on track to a stagnation of the sector at the lowest levels in its history, achieved after six years of sharp declines. The current situation, unfortunately, brings to mind the one experienced in the first half of 2008, when our industry was ahead of other economic indicators at the start of the recession.”

Expectations for the fourth quarter are no more encouraging, according to Oficemen. Cement consumption associated with public works has fallen in the first half by 11 per cent and it is expected that the 3Q15 fall in global consumption will lead to an even greater decline in public works. The 2016 budget by the Spanish government also offers little in terms of a way out of decline, says Oficemen.