Cement sales up 3.4%

MANILA, Philippines - Total volume of cement sales rose by 3.4 percent in the first quarter due to higher demand, the Cement Manufacturers Association of the Philippines (CeMAP) said.

In a telephone interview, CeMAP president Ernesto Ordonez said total cement sales reached 4.787 million tons in the first three months of the year, slightly higher than the 4.631 million tons sold in the same period last year.

While cement sales went up by only 3.4 percent this year, he said the increase was good enough after sales last year posted double-digit growth.

“We are coming from a high base,” he said, noting that first quarter sales in 2012 jumped by 20.3 percent year-on-year.

Compared to the previous quarter’s sales of 4.409 million tons, sales in the January to March period climbed by 8.6 percent.

The increase in sales was supported by higher demand given election-related spending for projects.

The positive economic performance is likewise encouraging the private sector to take in more construction projects, creating demand for cement.

Earlier, Ordonez said the CeMAP sees significant growth in sales this year as the government hiked its budget for infrastructure projects.

As of end-February, the Department of Budget Management said spending for infrastructure and other capital outlays increased by 40 percent to P32.3 billion from last year.

Sustained business confidence is likewise expected to support higher sales this year.

The volume of cement sales jumped 18 percent to reach 18.4 million tons last year from the 15.6 million tons sold in 2011.

The CeMAP is composed of the following: Cemex Philippines Group of Companies, Holcim Philippines, Inc., Lafarge Associated Companies, Northern Cement Corp., Pacific Cement Philippines, Inc. and Taiheiyo Cement Philippines, Inc.