Cement market rebound in the second half of the year

The market will see an increase of around 8% this year in terms of volume, boosted by reconstruction works following the floods. The prognosis for 2006 stands at around 3-5%.

Last year, the cement market registered a record growth of 10%, reaching an estimated value of 300 million euros, according to the representatives of the Cement Industry Employers Association (CIROM).

“According to our estimations, the market has this year surged by 6-8% across different regions and different evolutions, and on average by 8% at the level of the entire country. Sales advanced considerably, particularly in the second half of the year and consumption is quite solid at present, too. Works launched following the floods probably generated a consumption plus,” stated Mihai Rohan, CIROM chairman.

Demand between July-December generated a market rally, after the first half of the year witnessed a stagnation trend. However, the floods that hit Romania this summer boosted cement orders and overall construction materials demand. This is why, during the July-September period, cement producers had difficulties in meeting demand. “We are influenced by various climatic effects, floods, drought, but we hope that the year 2006 will witness normal development and an increase of 3-5%. Should major infrastructure works be started, however, the growth rate may increase to 10%,” Rohan specified. CIROM urged the authorities to draw up a normative document indicating the technical solutions to be used in highway construction, either concrete or asphalt, proposing the solutions be used depending on the specific demands of the projects. Should the Transport Ministry take into account the concrete technical solution next year, the cement market will again post a spectacular leap, of around 10%, according to cement producer representatives.