Panama cement market forecast to contract by 13%

Cement consumption in Panama is expected to fall by 13 per cent this year due to the economic slowdown, the strike by the trade union of construction workers, Suntracs, and a decline in construction permits.

"We are seeing a 13 per cent drop this year and we perceive that next year will not be a good year either," explained José Luis González Habas, Cemex's planning director.

In previous years, cement demand in Panama was close to 2Mta, peaking during the expansion of the Panama Canal but housing construction and the building of hotels and shopping centre, which also underpinned demand, have since slowed. At present consumption is estimated at 1.6Mta. A pick-up in residential housing is not expected until 2020.