< P > According to the research report of Thailand's Thai-Chinese Farmers Research Center on November 27, Thailand's cement industry slowed down in 2007 due to weak demand in the real estate market and the lack of government public infrastructure projects, resulting in domestic cement demand being in a state of contraction in the first nine months of 2007. Taihua Farmers Research Center estimates that the domestic cement sales volume in 2007 will be about 28.3 million tons, a decrease of 2.8% from 29.2 million tons in 2006, making the domestic cement market in a state of depression for two consecutive years after only 0.7% growth in 2006. However, weak domestic demand has prompted cement producers to expand exports to foreign markets. The Thai-Chinese Farmers' Research Center projects that Thailand's cement exports in 2007 will be about 18.5 million tons with an export value of $590 million, up 23% and 14% from 15 million tons and $517 million in 2006, respectively. The reason for the sharp increase in cement exports is that the demand for cement in ASEAN and South Asian countries has increased significantly, and Thailand has opened up new markets such as Middle East countries, Europe, Latin America and African countries, but the appreciation of the Thai baht has led to a decline in export margins. Cement production in 2007 is expected to be about 36.5 million tons, down 7.3% from 39.4 million tons in 2006, driven by a decline in domestic cement sales. < P > As for the trend in 2008, the Thai-Chinese Farmers' Research Center predicts that after the democratically elected new Thai government comes to power and manages the country, the domestic demand for cement will recover under the impetus of the domestic market demand. In particular, the government's investment projects will stimulate the expansion of private investment. As for cement exports, Asian developing countries will continue to invest in infrastructure projects to improve their transportation systems and infrastructure, which will help to further expand exports of Thai cement, but at a slower pace than in 2007. < P > However, the oil price trend, the exchange rate trend, and the domestic political situation in 2008 will be the main factors affecting the cement industry. After analyzing various support and risk factors, Thai Farmers' Research Center predicts that Thailand's cement industry is expected to resume growth in 2008, with production expected to increase by 2-7% to 37-39 million tons. The expansion of the growth range reflects the uncertainty of the above factors. Domestic cement demand in 2008 is expected to be between 28.9 and 30.3 million tons, an increase of 2-7%, higher than 2.8% decrease expected in 2007. < P > The risks caused by the above future uncertainties may lead to more difficult operation of cement enterprises, especially how to cope with the rising oil prices, because the production costs and transportation costs of the cement industry are closely related to energy, and the rising oil prices will inevitably become a factor affecting the operating costs. < P >
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