Cement sales, a barometer of the construction market, are slowly returning to growth after the steep declines recorded since the start of the crisis, but representatives of the top three producers–Carpatcement, Holcim and Lafarge–are reluctant to make triumphalist declarations and their forecasts are cautious, while awaiting the start of the big infrastructure projects promised by the state, writes Business Construct magazine.
Holcim and Lafarge, the top two players who fight over the local cement market, ended the first quarter on the rise in terms of volumes delivered.
Switzerland’s Holcim posted 15.7% higher sales and France’s Lafarge recorded a 4.7% increase. Germany’s HeidelbergCement, which operates in Romania under the name Carpatcement Holding, said its first quarter volumes were similar compared to the same period of last year, but deliveries varied widely from region to region.
Representatives of Holcim Romania say deliveries were mainly influenced by the favorable weather, which allowed for works overdue from past years to be continued.
On the other hand, Lafarge representatives say the weather was an impediment for constructions. “In 2011, results for the first few months of the year were influenced by a prolonged winter, unfavorable to constructions, but overall our visibility is not better than in the last few years,” said Philippe Questiaux, president and general manager of Lafarge Ciment (Romania).
Cement production fell by 11% last year, from 7.8 million tons to 6.92 million tons, and domestic sales fell 12%, to 6.85 million tons. Producers say although the cement market is showing signs of recovery, the sector will stagnate this year and they even do not rule out a slight decline.
“The cement market is showing signs of revival, but they are rather modest and we think it is much too risky to talk about a sound return of construction materials spending,” Holcim representative.