Colombia’s cement demand decreases 5% in September

Cement consumption in Colombia declined 4.9 per cent to 1.131Mt in September 2023 from 1.19Mt in September 2022, according to DANE, the country’s statistics office.

The Valle del Cauca market saw the largest contraction, by 18.8 per cent YoY, followed by Norte de Santander (-16.5 per cent), Caldas (-13.7 per cent) and Colima (-13.4 per cent). Meta, ear and Sucre were the only markets that showed growth – by 4.1, 2.1 and one per cent, respectively, in September 2023. Sales in the capital market of Bogotá slipped by 0.1 per cent YoY.

Production slipped 1.4 per cent from 1.28Mt in September 2022 to 1.261Mt in September 2023.

Output was dispatched to customers both in bulk and as bagged cement, but bulk volumes were down 5.8 per cent YoY while bagged cement dispatches fell by 4.4 per cent YoY in October 2023.

Dispatches to building companies and contractors dropped 13.5 per cent YoY while ready-mix concrete reduced their off-take by 2.3 per cent. Retail sales were down 2.3 per cent YoY. Dispatches to other segments dropped 14.1 per cent YoY in September 2023.

January-September 2023
In the first nine months of 2023 cement demand fell 5.5 per cent YoY to 9.583Mt from 10.142Mt in the 9M22. The market contraction was particularly apparent in Nariño, where sales contracted by 30.7 per cent. Caldas reported a 14.7 per cent drop in sales, followed by Valle del Cauca with a 12.6 per cent drop and Bolívar, which saw 10.3 per cent fall. However, Sucre saw a 10.3 per cent increase, Casanare a 2.2 per cent advance. Bogotá reported a 1.9 per cent uptick. Minor gains were also seen in Cundinamarca (+0.6 per cent) and Atlántico (+0.3 per cent).

Production decreased by 3.1 per cent YoY to 10.546Mt in the January-September 2023 period from 10.886Mt in the equivalent period of the previous year.

Bulk volume dispatches from cement producers contracted by 2.9 per cent YoY while bagged dispatches were down 6.8 per cent YoY. In terms of market segments, construction companies and contractors reported a 16 per cent reduction in off-take, but ready-mix concrete companies increased theirs by 1.6 per cent. Sales to the retail sector were down 5.2 per cent YoY in the 9M23. Other segments reported a 5.8 per cent YoY drop in their purchases.