Falling Real Estate Activity Weighing Heavily on Cement Deliveries by August

Cement deliveries tumbled during the 8 months of 2015, dropping by 12.20% to 3.24M tons compared to a higher level of 3.69M tons by August 2014.  This plunge could be partially attributed to the weakening construction activity as the number of construction permits downturned by a yearly 13.27% to reach its lowest level in 6 years at 9,814.

The fall in overall construction activity in the past few years, in

itiated after 2011 following the Arab spring and the Syrian unrest. Furthermore, construction activity persisted to its lowly level this year given the continuous political deadlocks and security development.

 In fact the six-month moving averages of the number of cement deliveries illustrated an 8.58% decline since August 2010. Worth mentioning, some surges in cement deliveries came about from either higher public spending on infrastructure or illegal construction.

In the month of August alone, cement deliveries remained relatively stable, down ticking by 0.31% to 473,989 tons compared to a slightly higher level of 474,479 tons in August 2014.

 

Total Monthly Cement Deliveries

Falling Real Estate Activity Weighing Heavily on Cement Deliveries by August

Source: BdL

 

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