Cement sales rose 14.3 percent in 2015 to 24.36 million metric tons from 21.3 million MT in 2014, amid a surge in public works and infrastructure projects.
The Cement Manufacturers Association of the Philippines said warm weather proved to be good for construction works and contributed to the uptick in sales of cement.
Cement sales in the fourth quarter alone surged 16.6 percent to 6.08 million MT from 5.21 million MT a year ago, while third-quarter quarter sales showed an 18.6 percent increased to 6.37 million MT from 5.376 million MT.
CeMAP president Ernesto Ordoñez said the increased sales was brought about by the large budget of the Public Works Department, the private sector’s confidence in government and new housing projects with low interest rates.
Cement sales have been on an upswing since 2011, hitting a record of 21.3 MMT in 2014, before it was surpassed by the 2015 level.
Cement manufacturers also increased their capacity utilization to 85 percent in 2015 from 65 percent in 2014 as demand for the product continues to rise amid a growing economy. The gross domestic product grew 5.8 percent last year.
The construction sector expanded 8.4 percent year-on-year in 2015, according to the Philippine Statistics Authority. At current prices, construction spending reached P1.44 trillion last year.
The Trade Department said there was enough volume to supply the requirement of the construction sector.
“There is no volume shortage and cement plants in the country have provisions to produce higher volume, if needed,” said Trade undersecretary for consumer protection Victorio Dimagiba.
The Philippine government has no prohibitions on the entry of cement imports. A big portion of the country’s cement imports comes from Vietnam.
CeMAP members include the Cemex Group of Companies Philippines, Lafarge Holcim Philippines, Republic Cement (a CRH-Aboitiz company), Northern Cement and Taiheiyo Cement Philippines.