Domestic demand for cement likely to dip 5%

Domestic demand for cement is expected to drop 5 per cent this year, because of a delay in construction of residential and government projects due to the country's slow economic growth and political turmoil.

Chantana Sukumanont, deputy chairman of Siam City Cement's executive committee for marketing and sales, said demand for cement dropped 8 per cent year on year in the third quarter.

Given the current market trend, Chantana estimates domestic demand for cement this year to be about 26.3 million tonnes, a drop of 5 per cent from 27.7 million tonnes last year.

However, demand for cement in the exports market stayed the same as last year at 17.5 million tonnes.

Thai Condominium Association president Atip Bichanond said the property market was expected to drop 510 per cent, because homebuyers had delayed their purchases decisions.

With a decline in the property market, demand for construction raw materials, especially cement, will also fall, he said.

Real Estate Information Centre directorgeneral Samma Kitsin said his agency estimated the number of new houses registered this year might drop 35 per cent or stay at last year's level of 80,00088,000 units.

"Fall in demand for construction raw materials is a clear indicator of a decline in the property market," he said.