JAKARTA. The consumption of cement in the domestic market from January to October (10M) 2019 is still 1.1% lower compared to consumption in the same period last year.
Mimi Halimin, an analyst from Mirae Asset Sekuritas, said that the demand for cement this year is still relatively low, because investors chose to wait and see attitude. This trend is also expected to continue until 2020. "For 2020, we still have not seen strong catalysts that can increase cement consumption," Halimin explained through a written statement on Friday (22/11) today.
Meanwhile, PT Semen Indonesia Tbk (SMGR) estimates that industry growth in 2020 will only be around 2% to 2.5%. On the other hand, PT Indocement Tunggal Prakarsa Tbk (INTP) estimates growth in the next year to reach 3% to 4%.
For information, Mirae Asset Sekuritas estimates that the total capacity of the cement industry in Indonesia this year will reach 114.8 million tons. Meanwhile, the gap between demand and supply of cement is predicted to remain wide at the end of the year. "However, margins are likely to improve supported by weak coal prices," Halimin explained. (KR/AR)