Spanish cement makers brace for demand slowdown after 7.5% first-half rise
Cement demand in Spain rose 7.5% in the first half, but producers expect growth to cool. With exports declining for a tenth year, industry association Oficemen is again calling for lower electricity costs.
Domestic rebound meets a weaker outlook
Spain’s cement industry is preparing for a slowdown in demand after domestic consumption increased 7.5% in the first half. The rise provided producers with a stronger home market, but the industry does not expect the pace to be sustained. Spanish business newspaper Cinco Días reported that cement companies are now anticipating cooling demand.
The change in expectations matters because cement production depends on steady volumes. A moderation in consumption would reduce the support that the first-half rebound provided to manufacturers. The available figures do not indicate how sharply demand could slow or identify a forecast for the full year, but the industry’s warning signals that the recent growth rate should not be treated as a durable baseline.
Exports decline for a tenth year
The weaker outlook is compounded by Spain’s prolonged loss of cement exports. According to Cinco Días, exports are declining for a tenth year. That leaves manufacturers with less scope to compensate for softer domestic orders by placing additional production in foreign markets.
For producers, the combination creates pressure on capacity utilization: domestic demand has improved, but its momentum is expected to cool, while the external market has been contracting over a much longer period. Export weakness also affects traders and logistics providers handling Spanish cement, although the source material does not provide shipment volumes, destination markets or the size of the annual decline.
Electricity costs return to the agenda
Against this background, industry association Oficemen has renewed its call for lower electricity costs. Energy expenses are particularly relevant when companies compete for export orders, because costs incurred in Spain must be absorbed in prices offered to buyers abroad. With exports already in their tenth year of decline, the association is presenting electricity costs as a central competitiveness issue for the sector.
The first-half increase therefore gives an incomplete picture of industry conditions. A 7.5% domestic rise supports sales in the near term, but producers are planning for weaker momentum rather than an uninterrupted expansion. If demand cools while exports continue to fall, companies will have fewer volume-based options for offsetting electricity costs. The next test for the market will be whether domestic consumption remains strong enough to cushion the continuing export decline and whether the industry’s renewed appeal on power prices produces a policy response.
