15/07/2004 08:20
Cement sales in the Cyprus market hit a new high in June 2004, which reflects the boom in the construction activity for this period. According to CYSTAT data released on Wednesday, the two Cyprus’ cement companies disposed 151.2 thousand tons of cement in the local market compared to 117.4 thousand tons in June 2003 (+28.8%). The total quantity of cement in the Cyprus market for the first half of 2004 increased 20.7% to 761.4 thousand tons against 630.9 thousand tons in the corresponding period of 2003.
Cement companies
It is anticipated, however, that the growth rate of the cement demand will not be kept at the same levels, although this doesn’t mean that it will necessarily fall. Vasiliko Cements official, Giorgos Sideris, told StockWatch that the demand for cement will continue to grow for the next 2-3 months. “By the end of the year, demand will remain high. We expect a further increase in July in view of the holidays in August. From the large development projects we do not expect a thrust at the current stage. The only projects that are under construction are the Nicosia hospital and the interchange in Limassol”, Mr. Sideris said.
Invited to comment on the statements made by the ready concrete manufacturers for a lack of cement that affected production, Mr. Sideris said that numbers proved that these protests were unjustified.
Similarly, Cyprus Cement Company official, Stavros Galatariotis said that a possible increase in the future demand at the same pace would be surprising. “Consumption will not drop, despite the fact that certain owners in Paphos sell their villas to buy properties in the occupied territories. Also, Limassol will not be affected by the constant and stable demand for cement, which is attributable to the foreign workers employed in the city. Its infrastructure (port, tourist industry, the bases, offshore banks etc) attracts people. On the other hand, Paphos has nothing more than the tourist product”, Mr. Galatariotis said.
Despite the increased demand for cement in June 2004, CCCI Honourary Chairman and building material importer, Fanos Epifaniou anticipates a normal situation in the construction industry by the end of the year. Mr. Epifaniou said that the increased demand in cement and iron is related not only to the increased construction activity, but also to the new anti-seismic construction standards that require more cement and iron. Mr. Epifaniou did not exclude the possibility of a reduced demand by the land developers, who “felt the pressure in the property prices” in Paphos and Protaras.
Tofarides: Temporary phenomenon
Chairman of the Land Developers Association, Lakis Tofarides, expressed his disagreement on the estimates that the sector faces lower demand. “Demand has always been lower in the summer season”, he said.
Mr. Tofarides also said that the increase in the building material and the imposition of VAT on properties have contributed to the drop in demand, since developers must reconsider their costs and prices.
With regard to latest information according to which foreign owners sell their properties in the free areas to buy properties in the occupied north, Mr. Tofarides said that foreigners do not intend to buy properties belonging to the G/C in the north since they are aware of the fact that they will lose everything in case of a Cyprus settlement.
Cement companies
It is anticipated, however, that the growth rate of the cement demand will not be kept at the same levels, although this doesn’t mean that it will necessarily fall. Vasiliko Cements official, Giorgos Sideris, told StockWatch that the demand for cement will continue to grow for the next 2-3 months. “By the end of the year, demand will remain high. We expect a further increase in July in view of the holidays in August. From the large development projects we do not expect a thrust at the current stage. The only projects that are under construction are the Nicosia hospital and the interchange in Limassol”, Mr. Sideris said.
Invited to comment on the statements made by the ready concrete manufacturers for a lack of cement that affected production, Mr. Sideris said that numbers proved that these protests were unjustified.
Similarly, Cyprus Cement Company official, Stavros Galatariotis said that a possible increase in the future demand at the same pace would be surprising. “Consumption will not drop, despite the fact that certain owners in Paphos sell their villas to buy properties in the occupied territories. Also, Limassol will not be affected by the constant and stable demand for cement, which is attributable to the foreign workers employed in the city. Its infrastructure (port, tourist industry, the bases, offshore banks etc) attracts people. On the other hand, Paphos has nothing more than the tourist product”, Mr. Galatariotis said.
Despite the increased demand for cement in June 2004, CCCI Honourary Chairman and building material importer, Fanos Epifaniou anticipates a normal situation in the construction industry by the end of the year. Mr. Epifaniou said that the increased demand in cement and iron is related not only to the increased construction activity, but also to the new anti-seismic construction standards that require more cement and iron. Mr. Epifaniou did not exclude the possibility of a reduced demand by the land developers, who “felt the pressure in the property prices” in Paphos and Protaras.
Tofarides: Temporary phenomenon
Chairman of the Land Developers Association, Lakis Tofarides, expressed his disagreement on the estimates that the sector faces lower demand. “Demand has always been lower in the summer season”, he said.
Mr. Tofarides also said that the increase in the building material and the imposition of VAT on properties have contributed to the drop in demand, since developers must reconsider their costs and prices.
With regard to latest information according to which foreign owners sell their properties in the free areas to buy properties in the occupied north, Mr. Tofarides said that foreigners do not intend to buy properties belonging to the G/C in the north since they are aware of the fact that they will lose everything in case of a Cyprus settlement.
Related Articles
