Displaying items by tag: exports
Update on Türkiye, March 2024
13 March 2024TürkÇimento revealed this week that cement production in Türkiye grew by 10.5% year-on-year to 81.5Mt in 2023. In a press release describing the progress of the local cement sector, the cement association reported that domestic sales rose by 19% to 65Mt but that exports fell by 28% to just under 20Mt. Fatih Yücelik, the chair of TürkÇimento, also said that his country was the second largest exporter of cement in the world in 2023 and that its most important target market was the US. He noted that the construction sector grew by 8% during 2023, that reconstruction projects were enacted following earthquakes in early 2023 but that no further growth in domestic sales of cement was anticipated in 2024.
As is standard for these kinds of occasions, Yücelik also raised the association’s sustainability ambitions, describing his sector as one “whose main goal is to provide low-carbon production.” He added that the Turkish cement industry supports the country’s net zero target of 2053. To this end the association has also released its first sustainability report, for 2022, covering 48 of the country’s 52 integrated plants. The Hürriyet Daily News newspaper offered one reason for this enthusiasm for sustainability: the US$30bn in investment required to meet that 2053 net-zero target. It also reported that Yücelik said that the industry needed to spend US$2bn towards meeting the incoming requirements of the European Union Carbon Border Adjustment Mechanism (CBAM).
Graph 1: Domestic and export cement sales in Türkiye, January – October, 2017 – 2023. Source: TürkÇimento.
TürkÇimento’s data for 2023 currently runs up to October 2023 but it supports Yücelik’s assessment. As can be seen in Graph 1, domestic sales of cement rose sharply in the first 10 months of 2023, by 20% year-on-year to 53.1Mt, yet exports fell almost as abruptly, by 18% to 13Mt. This is noteworthy, as exports had been rising steadily each year since 2018. Italy-based Cementir provided some context here in its annual report for 2023 saying that it had decided to focus on the domestic market due to greater profitability. Heidelberg Materials’ joint-venture Akçansa echoes these comments, blaming declining exports on “historically low freight rates increasing competitiveness of southeast Asian suppliers” while emphasising that the shift to the domestic market was made to meet increasing demand.
Graph 2: Revenue of selected large Turkish cement producers, 2022 - 2023. Source: Company reports.
Financial information from the larger Turkish cement producers that have released their results for 2023 follows the same pattern. Three of the four companies included in Graph 2 saw sales revenue grow in 2023. The one that saw its revenue fall, Nuh Çimento, is a major exporter. In 2022 for example it supplied 18% of the country’s total cement exports. All of these companies saw operating profit or earnings increase though.
The other big Türkiye-based news story this week was that Taiwan Cement Corporation (TCC) completed the latest increase to its stakes of Cimpor Global Holdings joint-ventures in Türkiye and Portugal. TCC now owns a 60% stake of the business in Türkiye and a 100% stake in Portugal. With respect to the business in Türkiye this means that TCC now has control of the country’s largest cement producer, OYAK Çimento. Once again the CBAM received a mention, with TCC saying in its valedictory statement that it believed that, “whether it's domestic or imported cement, low-carbon cement will become the main competitive advantage for the cement companies entering the European market.”
The domestic market in Türkiye may have seen a bounce in 2023 but the attention of both TürkÇimento, TCC and others are firmly set on the wider market in the region. TürkÇimento’s Fatih Yücelik said that the country’s cement production capacity was 120Mt/yr and that the population would have to be 150m to eliminate the need for exports. Its population is currently just under 85m. Yücelik set a value of US$2bn for his sector to adjust to CBAM but he also remarked that the income from exports in 2023 was around US$1.3bn. This is not an easy investment ‘pill’ to swallow but one that the country will have to digest if it wants to keep its export levels up.
Vietnamese cement firms increase US exports
05 March 2024Vietnam/US: Several Vietnamese cement companies, including Long Son Cement, Nghi Son Cement, Vicem Ha Tien Cement, Thanh Thang Cement, and Xuan Thanh Cement, raised their exports to the US in early 2024. The reasons for the increase include an ongoing local shortage in the US, Việt Nam News has reported.
In 2023, Vicem Ha Tien Cement and Nghi Son Cement made their first shipments of cement to the US, averaging 40,000t per shipment. Vietnam's cement industry, with a production capacity of 120Mt/yr, is experiencing a surplus of 60Mt. To address this, producers have increased their exports, with the majority of sales going to China, the Philippines, Bangladesh, Taiwan and some Middle Eastern countries.
Tokuyama Corporation’s cement business grows sales in first nine months of 2024 financial year
01 February 2024Japan: Tokuyama Corporation reported sales of US$1.7bn in the first nine months of the 2024 financial year. This represents a 3.3% year-on-year drop from nine-month levels in the previous financial year. The company sold 2.42Mt of cement, and exported 460,000t (19%) of this to foreign markets. Tokuyama Corporation now expects to sell 3.2Mt of cement and export 600,000t in the full 2024 financial year. As a result, the company’s cement business contributed US$345m in sales in the first nine months of the financial year, up by 16% year-on-year.
Pakistan raises first-half cement sales in 2024 financial year
04 January 2024Pakistan: Cement producers despatched 23.9Mt of cement during the first half of the 2024 financial year (1 July – 31 December 2023), up by 9.7% year-on-year from 21.8Mt in the first half of the previous financial year. The Nation newspaper has reported that exports more than doubled, to 3.65Mt from 1.73Mt.
The All Pakistan Cement Manufacturers Association (APCMA) expressed its concern over slow domestic sales. The association said “We are very hopeful that the government will speed up PSDP projects in order to increase cement demand and also give attention to our operational problems. Two major issues currently being faced by the cement industry are related to the new Axle Load regime and Track and Trace system. We have approached the concerned functionaries and expect to get a positive response.”
Vietnam’s cement and clinker sales drop by 6% in 2023
02 January 2024Vietnam: Vietnam sold 89Mt of cement and clinker in 2023, down by 6% year-on-year from 2022 levels. Việt Nam News has reported that exports fell less sharply than domestic sales. The country exported 32.6Mt of cement and clinker, down by 2% year-on-year from 2022.
The Ministry of Construction is reportedly contemplating extending a 2% reduction in the rate of value-added tax (VAT) on cement in order to stimulate sales. Additionally, it has called for a reduction in the export tax on clinker back down to 5%, following a rise to 10% in 2023.
Vietnam raises 10-month exports to Australia
28 November 2023Vietnam/Australia: Vietnam exported 412,000t of cement to Australia during the first 10 months of 2023. Việt Nam News has reported that this is more than double the 10-month 2022 figure of 157,000t. The total value of the shipments also more than doubled year-on-year, to US$20.5m from US$8.37m.
South Korea/Egypt: The South Korean government’s 72% ‘anti-dumping duty’ on imports of white cement from Egypt entered force on 17 November 2023. Yonhap English News has reported that the measure will remain in force for four months, until 17 March 2023.
Egypt exported 9240t of white cement to South Korea in 2022, up by a factor of nine from 2021 levels.
Egyptian white cement attracts new South Korean anti-dumping duties
21 September 2023South Korea/Egypt: The South Korean government plans to implement a 72% import duty on white cement from Egypt. Yonhap News has reported that the Korea Trade Commission (KTC) recommended the duty as an anti-dumping measure, following its investigation into the impacts of Egyptian imports on the South Korean white cement industry. This consists of Union Corporation’s 200,000t/yr Chongju white cement plant in North Chungcheong.
South Korea consumed 100,000t of white cement in 2022. Egyptian white cement commanded a 10% (10,000t) market share. The domestic cement industry complained to the KTC against Royal El Minya Cement and Albatros International Cement Trading in March 2023. An additional probe will now follow to assess the correct rate for the duty.
Caribbean Cement to raise exports
19 September 2023Jamaica: Caribbean Cement plans to increase its exports of its cement. The Gleaner newspaper has reported that the company announced its successful despatch of a 3400t shipment of cement to Turks and Caicos on 16 September 2023. The shipment consisted of 2267 jumbo bags of its higher early strength cement.
Managing director Yago Castro reassured Jamaicans that Caribbean Cement would continue to prioritise the domestic market. He continued “However, there is a market out there for us. We will actively look for opportunities to reallocate the spare capacity to the export market."
Uzbekistan: Anhui Conch Cement inaugurated its new 2.3Mt/yr Tashkent cement plant at Kiziloy on 21 August 2023. The plant cost US$320m and will produce 30% of its cement for export. UzReport News has reported that the plant will directly employ 300 people.