Cement sales rise 13% in January-March

MANILA, Philippines - Local cement sales posted a double-digit jump in the first quarter behind continued robust construction activities around the country.

Cement Manufacturers Association of the Philippines (CeMAP) president Ernesto Ordoñez said sales in the first three months of 2016 rose 12.8 percent to 6.43 million tons from 5.7 million tons recorded during the same period last year.

“Demand will continue to be strong, especially with presumptive president Duterte saying that infrastructure will remain a high priority during his administration,” he said.

Ordoñez said the cement industry benefitted from the higher infrastructure budget being allocated for the Department of Public Works and Highways (DPWH).

This year, DPWH’s budget for capital outlays is 33 percent more than last year at P364.7 billion.

“Private sector cement demand will likewise be strong because of post election indicators showing continued confidence in government,” Ordoñez said.

Last year, the CeMAP official said public construction grew 21 percent compared to private construction growth of five percent.

Ordoñez said private construction constituted 76 percent of all construction nationwide while that from the government accounted for 24 percent.

“The positive growth forecast for construction for both the public and private sector will result in the continuing strong demand for cement this year,” Ordoñez said.