Displaying items by tag: US
Cement shortages in the southern US
27 April 2022Cement shortages were being reported in the US media last week in Alabama and South Carolina. The owner of a ready-mixed concrete supplier in South Carolina was blaming it on labour and supply shortages. Dan Crosby, the president of Metrocon, told Fox News that his business could only take on 60% of the work it could normally cope with due to the issue despite demand for construction growing in the state. Meanwhile, the Alabama Concrete Industries Association said that its home state saw a 14% increase in the demand for concrete in 2021 but that a cement shortage might cause delays to projects. The association also pointed the blame at labour and supply issues. It pointed out that high demand for concrete during the winter prevented inventory being built up and then the annual cement plant maintenance breaks in the spring added to the problems. Once contractors actually secured supplies of cement they then faced further delays due to a nationwide truck driver shortage!
Graph 1: Annual rolling cement shipments in the South of the US. Source: USGS.
Data from the United States Geological Survey (USGS) doesn’t especially shed light on the situation in Alabama and South Carolina. Alabama was the fifth largest cement producing state in the country in January 2022 but this is unsurprising as it’s the state with the fifth largest cement production capacity. Rolling annual data on Portland and blended cement shipments by origin show the effects of the coronavirus outbreak in the south from the start of 2020 to January 2022. Shipments took a dive in 2020 and then mostly recovered in 2021. However, Alabama, Kentucky and Tennessee saw shipments rise from 7.1Mt pre-pandemic to 7.6Mt in January 2022. South Carolina’s shipments grew from 3Mt to 3.2Mt. Regionally, the North East had a similar pattern although, unlike the South, shipments have surpassed those at the start of 2020. The Midwest and West were different with a general upwards trend over the two years, although the West softened slightly from mid-2021 onwards. Overall the US as a whole has seen its shipments grow throughout this period.
Ed Sullivan from the Portland Cement Association (PCA) told the May 2022 issue of Global Cement Magazine that the US cement sector did well in 2021 with a 4.1% year-on-year rise in sales to 104Mt. However, he flagged up supply chain problems that actually slowed growth, led by a lack of staff.
The other point along these lines that Sullivan made was that imports of cement might not necessarily be able to compensate for domestic supply issues due to global demand for shipping post-coronavirus. USGS data placed imports to the US at 13.7Mt in 2019 compared to 16.3Mt in 2021. Notably, Cemex restarted one production line in 2021 at its CPN cement plant in Sonora State in Mexico to export cement to the west of the US. In March 2022 it added that it was going to restart another line at the plant also. It’s not alone though as GCC reported in January 2022 that a line at one of its plants in Chihuahua, Mexico, was exporting cement to Texas. Sullivan reckoned that January 2022 was ‘weak’ but that it was followed by an ‘extremely strong’ February 2022. The first quarter results from Holcim and CRH seem to back this up with the former describing the period as ‘outstanding’ and the region leading its sales and earnings growth rate globally. CRH reported strong demand in central and southern regions.
As the US economy restarted following the peak of the early coronavirus waves in 2020, various supply chain issues have manifested. Staff shortages are one issue and this can also worsen other logistic problems. The south seems particularly vulnerable to all of this as it is both the country’s largest cement market and because demand has held up. In January 2022 research by the International Monetary Fund (IMF) identified several reasons for staff shortages in the US and the UK. These included increased inactivity among older workers, the so called ‘She-cession’ (where female employment has overly reduced due to coronavirus trends) and shifting worker preferences amid strong labour demand.
Staff shortages are expected to sort themselves out throughout 2022 but favourable forecast demand for cement in the US is balanced by inflationary pressure. Persistent low staffing levels could further add to inflation growth. The US cement sector may be doing well at the moment but even success carries risks.
Global Cement’s Robert McCaffrey will be giving a keynote presentation at the IEEE-PCA Cement Conference in Las Vegas on Tuesday 3 May 2022. The May 2022 issue of Global Cement Magazine, including interviews with PCA chief executive officer Mike Ireland and chief economist Ed Sullivan, is available to download now.
Holcim US joins Carbon Capture Coalition
25 April 2022US: Holcim US has become the first cement producer member of the Great Plains Institute’s Carbon Capture Coalition. The coalition’s 78 participating members and 23 observer organisations collaborate to build federal policy support for economy-wide, commercial-scale deployment of carbon capture and related technologies. Holcim US is currently assessing the viability of commercial-scale carbon capture, with two studies underway, at its Portland cement plant in Colorado and its Ste. Genevieve cement plant in Missouri.
Region head North America Toufic Tabbara said “Being at the forefront of developing low carbon solutions requires continuous innovative thinking and partnerships. Our efforts are most effective when we can align and join forces with other companies and organisations across industries who share this same commitment. We are proud to be part of an organisation that is similarly focused toward more efficient, innovative and sustainable practices.”
US facing cement shortage
21 April 2022US: Concrete companies have reported an on-going shortage of cement as a contributor to increased costs in the construction industry. Local press has reported that the shortage is the result of high demand, most notably from commercial projects. A lack of cement truck drivers has reportedly exacerbated the supply situation.
North Carolina-based ready-mix concrete producer Metrocon president Dan Crosby said that his company’s facilities are currently operating at 60% capacity due to the shortage.
Conveyor Components launches new SBR belt cleaner
21 April 2022US: Conveyor Components has announced the launch of its SBR belt cleaner, a smaller version of its original brush-style belt cleaner. The cleaner uses an electric motor to drive a helical shaped, open face brush. Its hanger rail mounting allows for field customisable mounting on most conveyors. The supplier says that the product efficiently removes fines and carry-back material without clogging or loading.
Ireland: CRH’s first-quarter consolidated sales rose by 15% year-on-year in 2022. Its Americas Materials business’ sales rose by 13%, while its Europe Materials business sales rose by 11%. Cement volumes in the Americas region remained in line with 2021 levels as strong Central and Southern regional demand offset weather-impacted performances in Canada and some Western regions, and the company noted ‘good’ price momentum in Canada and the US. The company’s Europe Materials business recorded some volume increases, partly due to favourable weather conditions.
During the quarter, CRH made US$600m-worth of new acquisitions, and retains a ‘strong’ opportunities pipeline. The group says that its integrated solutions strategy continues to deliver across all divisions.
Chief executive officer Albert Manifold said “Although a number of challenges and uncertainties continue, our demand backdrop remains favourable and, absent any major dislocations in the macroeconomic environment, we expect first-half sales, earnings before interest, taxation, depreciation and amortisation (EBITDA) and margin to be ahead of the prior year period.” During the first half of 2022, the company also expects to complete US$600m-worth of its on-going share buyback programme.
US: Holcim US has successfully transitioned its 0.5Mt/yr Joppa, Illinois, cement plant to 100% Portland limestone cement (PLC) production. The plant will produce the company’s OneCem brand PLC. The producer says that the facility supplies cement to customers along the Mississippi from Minneapolis to the Gulf of Mexico and up the Ohio as far as Pittsburgh.
Plant manager Michel Klenk said “As a leader in our industry, it’s our responsibility to build a path for others to follow by setting the bar for product innovation and improvement. OneCem fits the bill as a low-carbon product that allows for sustained performance with lower emissions.”
US: CalPortland has converted production at the 1.3Mt/yr Mojave cement plant in California to its Advancement HS, a Portland limestone cement (PLC) product. The plant will reduce its CO2 emissions by 10% on a per ton basis. The company said the move supported the Portland Cement Association’s Roadmap to Carbon Neutrality and the industry’s overall efforts to address climate change.
US: A fire has been contained within the alternative fuels system at Holcim US’ integrated Whitehall cement plant in Pennsylvania. Suppression systems were activated and then fire fighters attended the scene, according to the Express-Times newspaper. The plant has notified the US Mine Safety and Health Administration about the incident. No injuries have been reported and an investigation is ongoing. A fact sheet about the plant says that it uses 2m tires/yr as part of its alternative fuels mix. It uses coal and petcoke for 50% of its mix.
Titan America to expand Norfolk terminal in Virginia
12 April 2022US: Titan America plans to spend around US$37m towards expanding its Norfolk terminal in Chesapeake, Virginia. The plans at the terminal, run by subsidiary Roanoke Cement Company, include building a 70,000t dome, enlarging truck and railway capacity and enabling the site to import and distribute raw materials such as fly ash, slag and aggregates. At present the unit has a bulk storage capacity of 35,000t. Titan says that the upgrade will enable it to meet growing demand for its products in the Mid-Atlantic region. The project also follows a similar investment in a 70,000t dome currently under construction at Titan's import terminal in Tampa, Florida.
"The major expansion and modernisation of these two marine terminals is another important step toward meeting fast-growing demand for our products and services in critical infrastructure, commercial and residential projects in our communities," said Bill Zarkalis, president and chief executive officer, Titan America.
The dome and associated expansion projects are scheduled for completion in 2023.
Elex starts up electrostatic precipitator at National Cement’s Ragland plant in Alabama
12 April 2022US: Switzerland-based Elex has completed a cold start-up of an electrostatic precipitator (ESP) it has supplied to National Cement’s Ragland plant in Alabama. The ESP will be used for primary dedusting and it has a separation area of approximately 7000m2. The cement plant, owned by France-based Vicat, is currently building a new 5000t/day production line that is due to be commissioned in mid-2022.