Peruvian cement company Pacasmayo produced 1 million 453,600 tons of clinker in the first three quarters of 2023, a year-on-year drop of 9.4 percent. 

Clinker is an intermediate cement product obtained by synthesizing limestone, clay and iron oxide in a kiln at about 1,450 degrees Celsius. One ton of clinker is used to manufacture approximately 1.1 tons of gray portland cement.

In the third quarter of the current year, Pacasmayo reported that its clinker production volume at the Pacasmayo plant increased 61.1%, on a year-over-year basis, mainly due to the start-up of its new kiln.

At the same time, clinker production volume at the Rioja plant decreased 16.9%, in line with lower cement demand, as well as inventory consumption during this quarter.

Pacasmayo

Its Piura plant did not produce clinker in the third quarter, mainly due to the start of production of its new kiln in Pacasmayo, which resulted in a shift of production to this plant, as well as its annual production plan that aims to maximize the operating efficiency of our kilns. 

Pacasmayo is the largest cement company in northern Peru. The company has three cement plants in Piura, Pacasmayo and another in Rioja with a total annual capacity of 4.94 million metric tons of cement.

During the third quarter of the year, low economic growth and weak investment conditions continued in Peru. 

As a result, the Peruvian Central Bank has revised downward its GDP growth projection from 2.2% to 0.9% for 2023. Economic activity is expected to recover in 2024 and grow 3.0%, considering a moderate El Niño in the first quarter of 2024.

In recent weeks, the probability of a moderate to strong El Niño has increased. 

Although El Niño affects all sectors, the most affected are fishing, construction and agriculture. 

Likewise, although there are nationwide effects, the Northern region is usually the most affected by heavy rains, particularly Tumbes, Piura, Lambayeque and La Libertad.