INTERCEM Asia 2026

Indonesia's cement market provided an important starting point for the programme, with production capacity of approximately 120Mt compared with domestic demand of around 60Mt. The resulting oversupply increased pressure on profitability and reinforced the role of exports within the country's cement industry.

Discussions also addressed Indonesia's transition towards lower-carbon cement production and the strategic response of producers to changing market conditions. SIG presented a move beyond cement towards a broader building materials portfolio, with greater emphasis on operational efficiency, customer requirements and participation across the wider construction materials value chain.

Global cement demand remained weak across a number of mature markets, with high interest rates and construction costs delaying a stronger recovery. Energy prices and geopolitical disruption added further pressure, while forecasts were revised downwards as uncertainty increased around the outlook for late 2026 and 2027.

Despite weaker demand, pricing remained supported by higher costs. Energy, freight and other production inputs continued to affect margins, leaving producers managing the combination of subdued consumption, cost inflation and uncertainty around the timing of a construction market recovery.

Disruption in the Middle East placed renewed pressure on dry bulk shipping routes and freight economics. Uncertainty around major trade corridors affected voyage distances, vessel availability and costs, with the consequences extending beyond the region into international commodity and cement supply chains.

Higher energy and bunker costs added to the pressure on seaborne trade. For cement and other lower-value bulk commodities, changes in freight costs had a direct impact on the viability of longer-distance trade and the competitiveness of established supply routes.

Changing US tariffs, demand conditions across Asia and growing production imbalances were altering established cement trade flows. US efforts to reduce reliance on imports were considered alongside the consequences for Asian producers dependent on export markets.

China's domestic contraction added another dimension to the regional outlook, with excess capacity creating greater potential for material to move into international markets. Combined with oversupply elsewhere in Asia, these pressures increased competition between exporters and made tariffs, freight costs and access to destination markets increasingly important to trade decisions.