Cement demand in Malaysia will continue to flourish in the medium-to-long term, supported by major infrastructure projects across the country, reports RHB Investment Bank Research (RHB IB). A sector report by RHB IB listed current low inventory levels, the push towards solar panels and electric vehicles, and the recovery in demand on the back of an anticipated upturn in China’s manufacturing and property sectors in the second half of 2024, as the main drivers of its demand growth projections.

According to RHB IB, bulk cement prices in Malaysia have also remained high, recording a 24.7 per cent increase YoY in August 2023, reaching MYR380/t (US$80.33/t). The three-year average for bulk cement prices in 2019-21 was approximately MYR216.80/t, reports The Edge Malaysia.

“Key sector downside risks include a decline in LME aluminium prices, deceleration of global economic growth, higher-than-expected raw material costs, lower-than-expected cement average selling prices, and lower-than-expected cement production,” added RHB IB.