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ANALISYS: Increase of 5%, estimated for the cement based products market

Due to the favorable climatic conditions in the first quarter of this year, the cement market was quite dynamic, with an increase of approximately 10.4% compared to the same period in 2014, according to data from CIROM, the specialized professional association in Romania. The experts of the association assert that the weather conditions are not comparable, and this is why evolution is, at first sight, spectacular. In 2015 the analyzed market is expected to increase between 3% and 5%. Regarding the concrete additives, the sales rose by about 5% in 2014, compared to the previous year, while estimates for the first half of this year indicate a 15% sequential growth in the field. In the precast concrete was registered a quantitative increase of 4%, from 1.28 million cubic meters in 2013, to 1,330,000 cubic meters in 2014. At the same time, revenues reached 220 million euro (+5%). According to the National Statistics Institute (INS), in the first three months of this year the cement market recorded sales of 1.076 million tons, an increase compared to the 975,000 tons recorded in the same period of 2014. In the analyzed period was an impetus of the construction works both on residential sector (+19.9%), non-residential (+15%) and civil engineering projects (+10.5%). Since the large infrastructure projects will not be launched this year, the CIROM specialists believe that growth vectors will be given, as in 2014, by the specific works on the buildings. The main issues which will affect in the next period the competitors in Romania are the same which influence the entire economy, namely: lack of predictability and stability in legislative field, uncertainty concerning the prices of raw materials, underfunding of public investment, frequent changes in the General Transport Master Plan, lateness payment of invoices for public works and the absence of promptness of Economic and Social Council. The local market of cement, valued at about 2.3 billion lei (520 million euro) in 2013 grew by about 5% in last year, reaching 560 million euro. For the current year, is estimated an increase between 3% and 5%, which means that the value could reach 590 million euro to the end of 2015.

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