Spanish cement industry contracted in 1H24
Cement consumption in Spain shrank 4.2 per cent YoY in June, coming in at 1.254Mt, down from 1.309Mt in June 2023, according to the latest data from Infocemento.
Exports were down 157,882t or 27.1 per cent YoY in June, falling to 424,708t.
January-June 2024
In the first half of 2024 cement consumption was down 3.3 per cent YoY to 7.268Mt, when compared with 7.513Mt in the same period a year earlier. Exports fell by 601,914t or 20.2 per cent YoY in the January to June period, coming in at 2.378Mt.
12-month moving average
The data show that in the last 12 months (July 2023-June 2024) cement sales fell 4.4 per cent YoY to 14.228t, 660,66t less than the previous period, while exports contracted 19.5 per cent YoY to 4.616Mt, a loss of 1.116Mt.
Outlook
Spain’s cement industry continued to contract through the 1H24, after shrinking 2.9 per cent in 2023. Both domestic and foreign cement sales are underperforming amid lingering weaknesses.
Construction output in Spain grew just 0.1 per cent QoQ in the April to June period, according to the latest GDP data. The monthly construction sector survey by the Ministry of Industry and Tourism declined in June and is below year-ago levels, with new orders also slipping. Meanwhile, the number of new mortgages contracted 4.5 per cent YoY in the January to May period, and mortgage rates are at their highest level since 2014, averaging 3.7 per cent so far this year.
The general director of Spanish cement association Oficemen, Aniceto Zaragoza, notes “a change of trend towards more positive data in the second half of the year” and that “there is a consensus among public and private organisations that our country needs to considerably increase the housing stock to meet the growing demand”. However, a strong uptick in cement demand would be needed for cement sales to report better than no growth for 2024 as a whole. As such, Spanish cement production is expected to contract this year, adding to the 3.1 per cent YoY fall recorded in 2023.
