Malaysian Cement sector to see 5% consumption growth in 2021

Malaysia's cement industry is expected to see modest growth in 2021 as operating conditions improve. Cement sales prices are forecast to rise by eight per cent to MYR260/t (US$64.7/t)in 2021 from MYR240/t in 2020, according to a local research house.

There is an easing of supply pressure on the domestic market after Malayan Cement and Cement Industries of Malaysia Bhd took a plant each offline, effectively removing 2Mta of cement capacity.

Meanwhile, we project cement consumption in Peninsular Malaysia to only improve by five per cent to 4.4Mt in 2021 from 4.2Mt estimated in 2020, driven by the gradual resumption of construction activities.