After a subdued period in the cement market between April and May, the German cement industry expects a 1.6% decline in cement consumption for 2015 compared to 2014 figures, falling to a total sum of approximately 26.7 million t.
Cement producers anticipate that the latter half of the year will be unable to make up for the poorer development of the first quarter by the end of 2015, reducing the total annual consumption to lower than last year. Early indicators suggest further gloom, particularly in the industrial construction sector.
A lower level of investment in new commercial buildings
Speaking on behalf of the German Cement Works Association and President of VDZ, Gerhard Hirth said: “At present there seems to be a lower level of investment in new commercial buildings than in other areas. At least in this highly important construction sector the positive overall economic situation is not reflected by the cement market."
In contrast, the demand for multi-storey residential buildings is continuously increasing. Hirth continued: "We are expecting the situation in this segment to remain positive. What's more, the investment campaign announced by the federal government leads us to believe that in the medium term the civil engineering branch will also provide positive impulses for the cement market.”
VDZ member companies in the domestic market
So far this year, the VDZ member companies have supplied approximately 8.7 million t of cement to the domestic market – a figure that is 8.9% below the corresponding period in 2014.
Read the article online at: https://www.worldcement.com/europe-cis/14072015/cement-consumption-decreases-in-germany-162/