Cement exports may reach 11 million tons this year<\/p>\n
JAKARTA (JP): Indonesia saw over a 450 percent increase in its
\ncement exports in 1998 and this trend is likely to continue this
\nyear as most local cement producers have shifted their focus to
\noverseas markets.<\/p>\n
According to data from the Ministry of Trade and Industry,
\ncement exports rose to 4.5 million tons in 1998 from 800,000 tons
\nthe previous year.<\/p>\n
This year, cement exports are projected to increase to some 11
\nmillion tons.<\/p>\n
A senior official at the ministry said here on Tuesday that
\ncement exports could exceed 11 million tons this year because of
\nan increase in orders received by local producers.<\/p>\n
\"Some producers, like Semen Gresik and Semen Padang, have
\nupgraded their port facilities while other producers are ready to
\nraise their production capacity to fill the higher export
\norders,\" Peter Sampe told The Jakarta Post.<\/p>\n
Poor transportation and loading facilities have been the most
\ncommon problems hampering producers' ability to meet overseas
\norders, he added.<\/p>\n
\"If these problems are solved, export activities would be
\nsmoother because the country's production capacity and output are
\nfine and the price of its cement is good,\" he said.<\/p>\n
In 1998, the country's total cement production dropped to 22.3
\nmillion tons from 27.5 million tons the previous year due to a
\nsharp decline in demand for the commodity on the domestic market.<\/p>\n
Last year's total cement production was only about 55 percent
\nof the industry's production capacity.<\/p>\n
Peter said production was expected to increase to 33.2 million
\ntons this year to meet the projected rise in demand from both
\noverseas and local markets.<\/p>\n
He said about 11 million tons of the projected cement output
\nwould be exported while the remainder would be sold domestically.<\/p>\n
\"We hope to be able to export at least six million tons in the
\nfirst quarter and expect to export at least five million tons in
\nthe second quarter,\" he said.<\/p>\n
He said nearly one million tons of cement were sold overseas
\nin January, about 750,000 tons in February and some 900,000 tons
\nin March.<\/p>\n
In the last few months, demand for Indonesian cement has been
\nvery encouraging, he said.<\/p>\n
\"The delivery of new orders may have to be rescheduled until
\nJune because we are already busy trying to meet previous orders,\"
\nhe added.<\/p>\n
Indonesian cement currently is sold for between US$22.00 and
\n$24.00 per ton in bulk, he said, adding that the price is
\nexpected to rise to $26.00 per ton in bulk in the second quarter.<\/p>\n
Indonesia exports its cement to more than 20 countries in
\nAsia, South America, the Middle East and Africa, with Bangladesh
\nthe biggest importer. Mexico, Chili and Egypt are emerging as new
\nmarkets for Indonesian cement.<\/p>\n
Indonesia's cement producers currently rely on overseas
\nmarkets to offset the slump in the local market, according to a
\nsource at the Indonesian Cement Association.<\/p>\n
\"We cannot reduce our production output just because there is
\nmuch less local demand because that will only affect the
\ncondition of our machines and increase production costs,\" said
\nthe source, who asked for anonymity.<\/p>\n
\"Ideally, 80 percent of the total cement output should be
\nabsorbed by the local market and the remaining 20 percent by
\noverseas markets. But now this is almost reversed,\" the source
\nsaid.<\/p>\n
Local demand for cement has dropped due to the prolonged
\neconomic crisis. A 30 percent drop in demand was seen in the
\nfirst quarter of 1998 and the slump in demand is projected to
\nexceed 30 percent in the first quarter of this year, said the
\nsource<\/p>\n
Data from the ministry shows this year's local demand for
\ncement is projected at 20.8 million tons, only slightly higher
\nthan 1998's 19.2 million tons and 6.6 million tons less than the
\n27.4 million tons in 1997.<\/p>\n
An executive at the association predicted total cement exports
\nin the first quarter of this year would double the exports
\nrecorded in the same period last year. (cst)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/cement-exports-may-reach-11-million-tons-this-year-1447893297",
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