Cement market hit by property slump
Indonesia's cement consumption in May shrank 14.4% year-on-year to 3.05 million tons amid a slump in the property and construction sector, Asia Pulse reported.
It was the steepest contraction in monthly consumption from 3.56 million tons in April, the association of cement companies said.
Association chairman Urip Timuryono said private sector property projects and government infrastructure projects have been the largest consumers of cement in the country.
A 0.5 percentage point cut in the bank credit interest rate was not enough to boost the real sector, Timuryono said.
Sales in 2008 were especially high when the people in the regions enjoyed high prices of commodities like rubber and palm oil, which are unlikely to be repeated this year, he said.
It was the steepest contraction in monthly consumption from 3.56 million tons in April, the association of cement companies said.
Association chairman Urip Timuryono said private sector property projects and government infrastructure projects have been the largest consumers of cement in the country.
A 0.5 percentage point cut in the bank credit interest rate was not enough to boost the real sector, Timuryono said.
Sales in 2008 were especially high when the people in the regions enjoyed high prices of commodities like rubber and palm oil, which are unlikely to be repeated this year, he said.