Colombian cement market expands 6% in March

Grey cement dispatches in Colombia increased 5.7 per cent to 1.257Mt in March 2022 from 1.189Mt in March 2021, according to the country’s statistics office, DANE. When compared with demand in March 2020, they were up 70 per cent from 0.74Mt.

Bulk sales increased by 6.9 per cent YoY while bagged sales saw a more moderate growth of 5.2 per cent in March 2022. Sales to the ready-mix concrete segment saw a 10.1 per cent hike while retail sales increased 6.2 per cent YoY. However, construction companies and contractors reduced their offtake by 4.7 per cent.

Demand in Bogotá and Antioquia was up 5.2 per cent YoY in March 2022 while in Cundinamarca sales picked up 7.7 per cent. Norte de Santander saw a 4.5 per cent YoY uptick. Valle del Cauca reported a 14.6 per cent increase in sales when compared with March 2021. Other significant YoY growth was noted in Tolima (+29.8 per cent), Cesar (+23.4 per cent), Huila (+21.4 per cent), Quindío (+19.9 per cent), Bolívar (+18.4 per cent) and Nariño (+10.1 per cent). The Sucre market contracted the most in March 2022, by 21.7 per cent YoY, while Casanare sales decreased by 10.7 per cent. Atlántico saw March sales shrink by 6.6 per cent YoY while in Magdalena, Meta and Caldas sales were down by 5.1, 5.5 and 5.8 per cent, respectively.

Production of cement advanced 14.9 per cent to 1.379Mt in March 2022 from 1.2Mt in March 2021. When compared with production in March 2020, output was up 62.2 per cent from 0.85Mt.

January-March 2022
In the first three months of 2022 national dispatches edged up by 2.2 per cent YoY to 3.328Mt from 3.257Mt.

Bulk sales in the 1Q22 were up by eight per cent YoY, but bagged sales slipped by 0.3 per cent. Ready-mix companies increased 9.4 per cent YoY while retail sales remained level. Construction firms and contractors reduced their demand by 6.6 per cent YoY.

In terms of regional markets, the largest expansion was noted in Tolima where 1Q sales were up 18 per cent YoY, followed by Huila (+15.2 per cent), Valle del Cauca (+9.9 per cent) and Cundinamarca (+8.2 per cent), Cesar (+7.6 per cent) and Bolívar (+7.2 per cent). Cement sales in the January-March 2022 period also edged up YoY in Quindío (+4.4 per cent), Bogotá (+3.7 per cent) and Antioquia (+3.5 per cent). Both Norte de Santander and Atlántico saw negligible YoY growth of 0.1 per cent in the 1Q22. However, Meta reported a 0.3 per cent YoY slip in sales while Santander and Boyacá saw sales fall by 3.6 and 4.7 per cent, respectively, when compared with the 1Q21. The market also contracted YoY in Casanare (-5.6 per cent), Caldas (-6.6 per cent), Magdalena (-8.9 per cent) and Nariño (-10.3 per cent). The strongest YoY drop in sales in the 1Q22 was reported in Sucre (-27.7 per cent).

Domestic production in the 1Q22 saw a 5.4 per cent uptick to 3.555Mt from 3.375Mt in the 1Q21.