Colombia’s cement market contracts 9% in June 2024

Grey cement dispatches in Colombia fell 8.7 per cent YoY to 943,500t in June 2024 from 1.033Mt in June 2023, according to the country’s statistics agency, DANE. Bulk deliveries fell by 9.2 per cent YoY while bagged cement deliveries were down by 8.4 per cent.

There was an 11.8 per cent YoY decline in purchases by ready-mix cement companies while supplies to construction companies and contractors fell by 11.1 per cent YoY in June 2024. The off-take by the retail sector decreased by four per cent YoY in June 2024. Deliveries to other market segments dropped by 30 per cent YoY.

Output from domestic cement plants slipped by 4.1 per cent YoY to 1.071Mt in June 2024 from 1.117Mt in June 2023.

January-June 2024
In the first six months of 2024 cement dispatches declined by 6.5 per cent to 5.89Mt from 6.297Mt in the 6M23. Bagged cement deliveries were down by 6.8 per cent YoY while bulk deliveries fell 5.8 per cent YoY in January-June 2024.

The off-take by construction companies and contractors contracted by 10.6 per cent while ready-mix companies reduced their purchases by 6.3 per cent from the 6M23 level. Sales to the retail segment slipped by 3.6 per cent over the same period. Dispatches to other markets dropped by 21.6 per cent YoY.

The areas of Cundinamarca and Bolívar saw the largest market contraction with total dispatches down by 12.2 per cent. Dispatches to Atlántico and Antioquia declined by 11.0 and 5.4 per cent, respectively. Bulk cement sales declined significantly in Cundinamarca (-16.9 per cent) and Atlántico (-8 per cent) while bagged cement sales fell mainly in Huila (-17.6 per cent), Norte de Santander (-14.5 per cent), Santander (-11 per cent), Valle del Cauca (-9.9 per cent) and Antioquia (-6.3 per cent).

Cement production was down 5.3 per cent YoY to 6.523Mt in the 1H24 from 6.885Mt in the year-ago period.