Rise in Cement sales indicates construction uptick

Cement-intensive infrastructure projects such as the new Eskom power stations and dams, cited as main reason behind surge.

The 7.7% increase in cement sales volumes in 2015 to 13-million tons after a 0.8% drop in 2014 suggests a booming construction sector.

This is because the cement-intensive infrastructure projects such as the new Eskom power stations and dams are beginning to gain traction.

The cement data show that some sectors of the South African economy are coping with load shedding‚ but this has not come through in terms of general public perceptions.

This is in part due to the long lag on cement sales data imposed by the Competition Commission‚ so the good news in terms of the first quarter’s 15.6% year-on-year surge in cement sales was only available in the third quarter.

Prior to April 2012‚ cement sales data were released on a monthly basis a few days after month-end‚ but the Competition Commission then ruled that the cement data could only be released on a quarterly basis after a minimum of 90 days.