Peru cement producers hit on various fronts

Results of Peruvian cement producers fell as the construction sector contracted 10.1% year-on-year in January-May due to economic slowdown, social protests and heavy rains that affected demand.

Major cement producer Aceros Arequipa's sales fell 13.1% to 1.19bn soles (US$332mn) in Q2 and 10.3% to 2.41bn soles in the first half, according to a results presentation. Net profit was 53mn soles in H1.

Lower sales in Peru, Bolivia and Colombia were partially offset by sales to Ecuador and Canada. Of total Q2 sales, a record-low 894mn soles corresponded to Peru.

Some 500mn soles of H1 sales corresponded to exports, compared to 469mn soles in the first half 2019 and 351mn soles in the first half 2020.

Aceros expects sales to fall 10% this year and capex of 510mn-560mn soles.

Cementos Pacasmayo, the biggest producer in the north, saw a 12.1% sales drop to 442mn soles in the second quarter and 10.3% to 922mn soles in the first half. Sales volume – cement, concrete and precast – decreased 17.9% and 17.1%. Net income in the first harl fell 7.2% to 87mn soles.

Demand contracted sharply in April after heavy rains.