Displaying items by tag: decline

Indonesia: Cement sales fell by 2.5% year-on-year to 51.9Mt between January and October 2025, amid a reduction in the national IKN capital city construction budget to US$889m. Cement production also saw a decline of 6%, reaching 52.9Mt. The Indonesian Cement Association (ASI) said weakening demand occurred in Kalimantan, where sales dropped by 828,356t to 3.88Mt, and Java, where sales fell by 556,468t to 27.1Mt.

Secretary general Ari Wirawan said “Domestic cement sales from January to October 2025 continue to show a negative trend, affecting nearly all regions with a 2.5% decrease compared to the same period in 2024.”

Sales in Sumatra and Nusa Tenggara rose by 2% and 3% respectively due to toll road and tourism infrastructure projects. Exports rose by over 20% to 1.11Mt, with shipments going to Bangladesh, Taiwan, Australia, Timor Leste and Sri Lanka. Production dropped by 6% to 52.9Mt, with utilisation reaching 53%.

ASI chair Lilik Unggul Raharjo said a proposed increase in the home renovation programme budget to US$2.6bn could lift annual cement consumption by 6.2Mt. He said “A 4Mt increase in demand is admittedly somewhat optimistic. Nevertheless, our fervent hope is that the increased budget for home renovations will indeed come to fruition.”

Egypt: Cement exports recorded their first decline in five years in the first nine months of 2025, falling by 5% year-on-year, according to Business News Africa. Exports were 14.5Mt, down from 15.3Mt in the same period in 2024. The decline follows the suspension of regulations that had allowed producers to reduce their capacity by 10% annually and instructed companies to prioritise local sales. The decision was halted for two months in May 2025, roughly five months before the dip in exports. Exports were only permitted for surplus quantities.

The policy had initially been introduced by the Egyptian Competition Authority (ECA) in 2021, after producers complained of heavy losses due to low demand and depressed prices. Production rose to 47.8Mt from January to September 2025, up by nearly 20% year-on-year, with local sales rising to 39.2Mt and clinker output rose to 45Mt from 42Mt.

Head of the Cairo Chamber of Commerce’s Cement Division Ahmed El-Zaini said “Egypt’s exports were only 3-4Mt/yr five years ago but surged to 20Mt/yr in 2024, largely at the expense of domestic supply.”

South Korea: Gangwon-do governor Kim Jin-tae visited Halla Cement’s Gangneung Okgye plant on 13 November 2025 to discuss challenges facing the cement industry amid the country’s ongoing construction slowdown. Governor Kim reviewed progress on the government’s US$682m carbon capture and utilisation (CCU) ‘mega’ project, which aims to capture carbon dioxide from cement plants in Gangneung and Samcheok, as well as nearby coal-fired power plants. The captured CO₂ will be converted into e-methanol for eco-friendly ship fuel, lithium carbonate for secondary batteries, and new construction materials.

Kim said that Gangwon-do’s cement production accounts for 63% of nationwide production. He pledged full administrative support to ensure the project passes its preliminary feasibility study, according to local press. Halla Cement’s Okgye plant has only operated three of its four production lines since 2024, each producing 5500t/day of cement, after reducing output due to weak construction demand.

“There have been some concerns over dust and fine particles,” Kim said. “Cement and power companies have voluntarily signed an agreement to reduce emissions by 46%, and a second reduction agreement will be signed this month. As the industry continues its efforts, the province will actively support it by significantly reducing emission charges.”

Indonesia: Indocement said that it has maintained a solid performance through the first nine months of 2025, despite a slowdown in the national cement market. Data from the Indonesian Cement Association (ASI) shows that overall cement demand fell by 3% year-on-year to September 2025, driven by a 10% decline in bulk cement sales, while bagged cement volumes remained largely stable, down by 0.1%.

Indocement’s total cement and clinker sales reached 14.4Mt, representing a 2% year-on-year decrease. Domestic sales dropped by 4% to 14Mt, but exports increased by 124% to 423,000t.

“This positive performance demonstrates Indocement’s business resilience amid challenging market pressures. We continue to focus on maintaining cost efficiency, expanding export markets and strengthening sustainability initiatives and operational innovation,” said Indocement corporate secretary Dani Handajani.

The company expects domestic cement demand to decline by about 2-3% in 2025 due to infrastructure budget cuts and limited consumer purchasing power. However, it remains optimistic about a modest recovery in 2026, forecasting around 1% growth.

South Korea: The Korea Cement Association, whose members include Sampyo Cement, Ssangyong C&E, Hanil Cement, Asia Cement, Halla Cement and Sungshin Cement, reported that domestic cement demand in 2025 is expected to reach 36.5Mt, down by 16.5% year-on-year, marking the lowest level since 1991, at 37.1Mt. Next year’s forecast indicates continued stagnation, with demand projected to decline a further 1% to around 36Mt.

According to the association, the country’s cement production peaked at 61.8Mt in 1997 before plunging to 44.6Mt during the 1998 financial crisis. Although production recovered to 56.71Mt by 2017, demand has since fallen by nearly 20Mt in just eight years.

An association official said, “While the sharp decline in domestic demand is quite shocking in numerical terms, the early 1990s were a period when the industry’s production capacity was 42.1Mt/yr, and cement domestic demand was rapidly increasing due to new town construction projects being developed in the outskirts of the Seoul metropolitan area as part of national policy. Currently, production capacity has increased to 61Mt/yr, but domestic demand is plummeting, so considering the utilisation rate, there is an enormous difference beyond simple numerical comparison.”

Cement exports rose by 52% to 4.5Mt in 2025, while for 2026, domestic demand is projected at 36Mt and exports at 3.5Mt.

Vietnam: Domestic cement sales reached about 18Mt in the third quarter of 2025, equal to 79% of second-quarter levels, according to the Construction Industry Development Centre (CIDC). The decline was attributed to prolonged storms and seasonal factors that disrupted operations and transport. Rising electricity, raw material and fuel costs also put pressure on production costs and profit margins.

By contrast, cement and clinker exports rose to nearly 9.5Mt, up on both the previous quarter and the first nine months of 2024. The increase was driven by efforts to expand into new markets in the Middle East, Africa and Eastern Europe, offsetting lower demand from the US, Taiwan and the Philippines. The Vietnam Cement Market Report noted that export profit margins remain under pressure due to high logistics costs and falling prices. The US’ 20% import tax on Vietnamese cement and Taiwan’s anti-dumping duties (in place until 2030) are also prompting companies to reassess pricing and market strategies.

According to the Vietnam Association of Building Materials, the final months of 2025 will bring ‘continued challenges’ from rising energy and input costs, but improving weather, faster public investment disbursement and signs of recovery in real estate are expected to boost demand for construction materials.

Bangladesh: Most cement plants are operating at less than 30% capacity, far below the global benchmark of 70–80%, according to the Bangladesh Cement Manufacturers Association (BCMA) via The Business Standard. National consumption fell to 38Mt in 2024, less than 40% of total capacity, and has declined further in 2025, forcing producers to cut output and lay off workers.

BCMA president Amirul Haque said “After Covid-19, we began recovering in 2021, driven by renewed construction. But since 2023, the situation has worsened drastically. Entrepreneurs expanded based on government demand. When projects slowed, we faced a severe cash flow crisis. Several small plants have already shut down.”

Bashundhara Cement, which has a capacity of 7.3Mt/yr, is reportedly running at 20% utilisation, while Mir Cement has reduced output to a quarter of capacity. Premier Cement is operating at around 40% capacity and Crown Cement has 60% of its capacity idle. Only Meghna Group of Industries reports growth, though utilisation remains 65%.

Bolivia: The Santa Cruz Chamber of Construction (Cadecocruz) has warned that the 65% increase in cement prices could ‘paralyse’ public and private construction projects across the country, according to Noticias Financieras. The organisation said the increase is inflating project costs, adding pressure to an industry that is reportedly already struggling with broader material price hikes. In response, the chamber has called for cement to be included among the materials covered by Supreme Decrees 5321 and 5452 on price readjustment, arguing that the measure would help to prevent work stoppages and job losses.

Brazil: Cement sales in August 2025 fell to 6Mt, a 2.5% decline compared to 6.15Mt in August 2024 and down 2.5% from July 2025, when sales stood at 6.16Mt, according to preliminary figures from the National Cement Industry Union (SNIC). Total sales, including exports, reached 6.01Mt, also down by 2.5% year-on-year. Cumulatively, sales between January and August 2025 rose by 3% to 44.2Mt, compared to 43.0Mt in the same period of 2024.

By region, the Southeast remained the largest market, selling 2.75Mt of cement in August 2025 (down by 2% year-on-year), followed by the Northeast with 1.26Mt (down by 0.6%), the South with 940,000t (down by 7%), the Centre-West with 745,000t (down by 0.7%), and the North with 298,000t (down by 4%).

The slowdown comes despite record levels of formal employment and higher wages, as consumer debt remains high at 49%, close to the all-time peak of 49.9% in July 2022. Consumer confidence declined in August 2025 amid concerns about the economic outlook.

High interest rates, standing at 15%, continue to weigh on housing demand and the construction sector’s confidence index fell to its lowest level since May 2021, while industry confidence also declined to its weakest point since the Covid-19 pandemic. Tight monetary policy, uncertainty and new US tariffs on Brazilian products have further clouded the outlook.

Paulo Camillo Penna, president of SNIC, said “The federal government's goal for the Minha Casa, Minha Vida program to build two million homes between 2023 and 2026 will enable the consumption of 10Mt of cement during that period. Structural masonry and concrete wall construction systems have been advancing throughout the country due to their cost-effectiveness, agility, competitiveness, and the Brazilian cement industry's efforts to engage and train professionals in construction companies.”

Indonesia: Domestic cement sales dropped by 3% year-on-year to 27.7Mt in the first half of 2025, down from 28.5Mt in the same period of 2024, according to the Indonesian Cement Association (ASI). Cement production also fell by 6% to 28.8Mt from 30.5Mt a year earlier.

ASI chair Lilik Unggul Raharjo said demand had contracted across most regions, except in Sumatra and Maluku-Papua, which posted growth of 4.9% and 5% respectively. He attributed the sales decline to weak household purchasing power and reduced government spending on infrastructure projects. The market remains oversupplied, resulting in a capacity utilisation rate of 56%. However, corporate secretary at PT Indocement Dani Handajani said that the company expects volumes to increase in the second half of 2025.