Indonesian rainy season causes cement sales to fall

Indonesian cement sales saw a 1% y/y decrease in January 2014 to 4.65 million t, compared to 4.68 million t in January 2013 due to severe flooding brought about by particularly high rainfall. The rainy season has resulted in a decrease in construction activity, impacting negatively upon cement demand, and has interrupted cement shipments.

Widodo Santoso, Chairman of the Indonesia Cement Association (ASI), told local press that cement sales have declined by approximately 1% in Sumatra (to 1 million t) and 2% in Java (to 2.5 million t), which together accounted for some 75% of total cement sales in the country in January 2014. The regions of Sulawesi and Kalimantan, however, saw a rise in sales by 21.5% (to 348 000 t) and 7.2% (to 374 000 t), respectively.

Indonesian cement sales saw a 5.6% y/y increase in 2013, totalling 58 million t, and sales for 2014 are anticipated to experience a growth rate of 6% (to approximately 61.5 million t). Furthermore, the country’s production capacity has expanded from 61 million t in 2013 to 68.2 million t in 2014.

Edited from various sources by Rosalie Starling

Read the article online at: https://www.worldcement.com/asia-pacific-rim/10022014/indonesian_rainy_season_causes_cement_sales_to_fall_718/