Cement is arguably one of the most important construction materials that has been available to multiple variations of human civilization. In Singapore, the cement industry has been around longer than the nation-state has had independence. Companies such has Singapore Cement Manufacturing have a history which dates to 1958, the year after Malaysia was officially recognized as an independent nation. There are no integrated cement plants in Singapore, just a 300,000t/yr capacity grinding plant in Tuas Crescent.
Interesting Singapore Cement Industry Statistics
#1. The total value of construction projects awarded in Singapore was S$26.5 billion in 2016. This represents a decline in value of 3.6% from the year before. (Frost and Sullivan)
#2. Residential building accounted for 42% of building work payments that were received in 2016. (Frost and Sullivan)
#3. There were about 1,800 registered general building contractors active in the Singapore cement industry as of December 2017. (Frost and Sullivan)
#4. The estimated market penetration rate of dry-mix mortar within the Singapore cement industry was 90% at EoY 2016. (Frost and Sullivan)
#5. In total sales value, the market size for dry-mix mortar in Singapore reached S$303.6 million in 2016. In 2012, the total sales value of the product was S$239.2 million. This represents a growth of 6.1% within the market. (Frost and Sullivan)
#6. Over 28% of the dry-mix mortar that is used by building general contractors is for adhesive and sealant installations. Another 20% is used for concrete repair or group. This is followed by façade work (19.3%), flooring (17.2%), and waterproofing (15%). (Frost and Sullivan)
#7. In 2016, there were fewer than 50 suppliers of dry-mix mortar in Singapore. These suppliers represent a market value of S$171.6 million. The top 5 suppliers in this segment of the cement industry in Singapore represent more than 56% of the market. (Frost and Sullivan)
#8. The largest supplier of cement products in Singapore, Pan Units, is capable of a total storage capacity of 115,000 tons of cement. They also have an annual throughput capacity of 3 million tons. (Pan United)
#9. When combined with clay, concrete, and stone products, the total value of the Singapore cement industry is S$834.1 million. (Singapore Department of Statistics)
#10. Over S$565 million in clay, cement, concrete, and stone products is imported by the industry every year. (Singapore Department of Statistics)
#11. Total compensation within the Singapore cement industry totals S$198 million annually. (Singapore Department of Statistics)
#12. From 2012-2016, total construction demand within Singapore experienced a loss of 4.1%. Total construction demands in 2016 dropped to S$26.4 billion, mostly due to a decline in the property market and fewer needs for private-sector buildings. (Frost and Sullivan)
#13. Civil engineering is the largest contributor to the demands for new construction work, accounting for 36% of the contracts which were awarded in 2016. (Frost and Sullivan)
#14. Residential building contracts represent about 25% of the total value of construction contracts that were awarded to businesses within the cement and construction industries in Singapore in 2016. (Frost and Sullivan)
#15. The total demand for cement in bulk from the construction industry reached more than 450,000 tons in March 2018. By May 2018, demand levels had fallen to 317,000 tons. (Building and Construction Authority)
#16. The market pricing for cement in bulk was S$77.60 per ton when delivered to site. For ready-mixed concrete the pricing was S$84.50 per cubic meter, according to rates published in June 2018. (Building and Construction Authority)
#17. The monthly material price indices for the implementation of fluctuation clause in May 2018 was 106.1, with the base period for the measurement originating from June 2006. (Building and Construction Authority)
#18. Public projects in 2017 rose by more than 20% from 2016 figures, with several major projects, including healthcare facilities and energy plants, requiring products from the cement industry in Singapore. (DBS Bank)
Singapore Cement Industry Trends and Analysis
The Singapore cement industry is very dependent upon the state of the construction industry for success. Although specific segments or products may see gains when the construction industry experiences a loss, the rise and fall of both industries is intricately tied together.
Another reason for the gains experienced by the cement industry is that the construction industry in Singapore saw a 2.6% increase in the number of total certified payments that were received.
Demand for ready-mix concrete is still somewhat soft in the market, around 14m cubic meters for the year. With lower selling prices afflicting the industry as a whole, revenue growth is possible, though it will not be robust.
Although certain segments may continue to struggle within the cement industry, especially if contract offerings continue to be in decline, the overall health of the industry is quite good. In the next 5-year period, we anticipate the industry being able to recover the recent losses it experienced in the past 5-year period, setting the stage for a stronger future.