12 June 2017
UK: Diana Montgomery, the chief executive of the Construction Products Association (CPA) has expressed frustration about the political deadlock that has resulted from the UK general election that took place on 8 June 2017. “From a business perspective, this is frustrating. We need certainty and clarity in order to address the serious challenges and opportunities facing UK construction over the next few years,” she said. She raised concerns over the delivery of the government’s National Infrastructure and Construction Pipeline, the government procurement process and its policy levers to address skills and housing shortages and the costs of energy and business rates to business. She added that she feared that the industry was facing a, “…period of greater instability at a critical time for our industry.”
Grupo Gloria expands Cal & Cemento Sur lime plant 12 June 2017
Peru: Grupo Gloria says that a US$80m upgrade project at its Cal & Cemento Sur lime plant at Caracoto-Juliaca near Puno is underway. Construction of a sixth line at the site scheduled for completion for the end of 2017, according to the Gestión newspaper. The new line will increase production by 1000t/day to 2000t/day. The investment follows a US$120m investment since 2012 that will see the plant’s production capacity rise to 1Mt/yr by the end of 2017 from 0.13Mt/yr in 2013.
Iranian cement producers urged to export to Russia 12 June 2017
Iran: The Iran Chamber of Commerce, Industries, Mines and Agriculture has urged cement producers increase their exports to Russia to take advantage of rising demand. Russian cement consumption is expected to reach 140Mt as it builds infrastructure for projects like the FIFA 2018 World Cup, according to the Islamic Republic News Agency. Iran exported 11.5Mt of cement in the 11 month period to 18 February 2017. Exports are hoped to nearly triple to 32Mt/yr by 2025 following targets set by the government’s Vision Plan.
Indonesia: Semen Indonesia increased its cement sales by 10% year-on-year to 11.5Mt in the first five months of 2017. The cement producer was pleased with the result, despite competition concerns and lower than expected government infrastructure spending, according to the Antara news agency. Company communications chief Sigit Wahono added that the company controls about 43% of the local market and this has remained stable since 2012. At present its market depends on bagged residential retail sales.
Indian cement producers continue to defend prices 12 June 2017
India: Sagar Cements, India Cements and Bharathi Cements have continued to defend public concerns over cement pricing due to economic trends beyond their control. In a press conference the producers blamed rising input costs, distribution costs, taxes and high margins by dealers, according to the Times of India newspaper. They added that the key demand drivers for the industry are residential house building and government projects.
S Srikanth Reddy, Executive Director of Sagar Cements forecast that cement demand will rise by 10 – 18% in Telangana and Andhra Pradesh over the next two to three years due to large government-run infrastructure projects. Tamil Nadu and Kerala are expected to rise by no more than 5% and Karnataka is expected to rise by 2 – 5%.
However, despite increases in the short term, the cement producers forecast problems for the industry in the south of the country, and in Andhra Pradesh and Telangana in particular, due to production overcapacity as producers increased their installed capacity in anticipation of high demand. At present they say that producers are forced to run plants at 60% production utilisation rates with high volatility in price rates in a highly fragmented market with over 50 brands.