Displaying items by tag: Ban

Kyrgyzstan: MP Alisher Kozuyev has called for the removal of the ban on importing Uzbek cement, stating during a parliamentary committee meeting on 24 September 2024 that it would reduce prices and enhance quality for Kyrgyz consumers by increasing market competition. He argued that the current ban supports local monopolies and raises domestic cement prices. The ban was introduced three months ago and is designed to protect local manufacturers, according to officials. Nonetheless, deputy minister of economy and commerce, Choro Seyitov, warned that cheaper Uzbek cement could threaten local industries, especially in the Osh region, and risk jobs and tax revenue. Seyitov also noted that some Uzbek cement does not meet Kyrgyz standards and certification requirements, and accused Uzbek exporters of price dumping.

A couple of stories have popped up this week regarding restrictions on cement imports. First, authorities in Taiwan have launched an anti-dumping investigation into Vietnamese cement. Secondly, and perhaps more surprisingly given its growing economy, the authorities in Kyrgyzstan are planning to ban overland imports of cement from within Central Asia. More on that later…

First, to the Far East, where Taiwan’s Trade Remedies Authority has launched an anti-dumping investigation into cement and clinker imported from Vietnam. It will assess imports covering the year from 1 July 2023 to 30 June 2024 and target seven specific Vietnamese cement producers among others. The Vietnamese companies are mandatory respondents – they will be compelled to answer investigators’ questions.

Vietnamese cement has long been among the cheapest in the region due to the country’s drive to hit production targets, rather than simply meeting demand. The situation has resulted in a vast amount of cement available for export. This, coupled to Vietnam’s long, indented coastline, makes it easy to ship cement overseas.

Even with export volumes falling by 1.2% year-on-year to 31.3Mt in 2023, around a third of Vietnam’s capacity, this is a massive volume of cement - and it’s only getting cheaper. The average export value of Vietnamese cement and clinker fell from US$46-48/t at the start of 2023 to just US$31-32/t in May 2024, a decline of 30-35%. These changes have been due, in part, to an increase in tax on clinker exports from 5% to 10% on 1 January 2023 and an anti-dumping investigation launched by the Philippines in March 2023. Falling prices and volumes represent a ‘double-whammy’ for producers, several of which have announced that they made losses in the first half of 2024. Vicem’s top management said that challenges also arose at home due to a reduced demand following limited civil engineering projects and a stagnant real estate market.

It is easy to see why Taiwanese cement producers may feel threatened by the prospect of greater volumes of cheap cement on their doorstep. Taiwan only made 4.9Mt/yr of cement in the first half of 2024. With domestic prices in the region of US$65-70/t according to Cement Network, this provides a very attractive margin of US$33-39/t for Vietnamese producers to export to Taiwan. It will be interesting to see how far the country’s authorities are willing to go to protect the country’s producers and whether any anti-dumping policies lead to further falls in the landed volumes of Vietnamese cement.

Meanwhile, 4600km to the west, Kyrgyzstan has announced that it will enforce a six-month road import ban on several types of cement including Portland cement, alumina cement and slag cement. The ban, affecting both cement and clinker, will take effect on 1 October 2024 and last for six months. According to the State Statistical Committee of Kyrgyzstan, the country saw a 76% year-on-year increase in cement imports – mainly from Iran, Kazakhstan, China and Uzbekistan - between January 2024 and May 2024. The total import volume over the five months was 125,737t. For a country that made just 1Mt over the same period, this is a major change.

The overland import ban is more of a surprise than the Taiwan / Vietnam situation, as Kyrgyzstan recently reported that the North of the country was experiencing a ‘construction boom’ and cement shortages. However, two new plants due to start production in the coming months could help the country out... unless it too would like to export its newly-developed cement production capacity.

And here we arrive at a ‘classic’ impasse. From Pakistani cement in South Africa, to price arguments in West Africa, import bans in Central Asia and Vietnamese cement in Philippines and Taiwan, more and more exporters are finding that their markets are already self-sufficient in cement, with the US perhaps the notable exception. Soon there will be nowhere left for cement to be exported to. Are we at peak cement?

Kyrgyzstan: Starting on 1 October 2024, Kyrgyzstan will enforce a six-month road import ban on several types of cement including Portland cement, alumina cement and slag cement, according to Trend. The Chairman of the Cabinet of Ministers, Akylbek Japarov, signed the decree affecting both ready and clinker forms of these cements. According to the State Statistical Committee of Kyrgyzstan, a 76% year-on-year increase in cement imports from January - May 2024 has been reported, totalling 125,737t. These imports are predominantly from Iran, Kazakhstan, China and Uzbekistan.

Indonesia: PT Kobexindo Cement has entered an agreement to construct a new cement plant in South Aceh, despite a national moratorium on such developments. The project, under China-based Hongshi Holding Group subsidiary Zhejiang Hongshi Cement, plans a US$621m investment for a facility with a 6Mt/yr capacity, according to the Jakarta Post.

The Indonesian central government's moratorium, aimed at curbing oversupply in the cement market, prohibits new cement plants except in specified eastern regions. This edict arose as national cement production significantly exceeded demand, according to the Indonesia Cement Association (ASI).

ASI president Lilik Unggul Raharjo said that the move by South Aceh regency not only violated the ban but also threatened the viability of three state-owned cement companies in Sumatra. Raharjo said "These companies are guaranteed to go out of business. The Industry Ministry will conduct a technical verification of foreign direct investment in the cement industry before the permit is issued.”

Armenia: The government has extended a temporary ban on imports of cement until the end of June 2024. The government says that the measure will help to re-establish competition between local cement producers and importers. NEWS.am has reported that Armenia produced 965,000t of cement during the first 10 months of 2023, up by 20% year-on-year. Meanwhile, in the first nine months of the year, cement imports grew by a factor of five, to 173,000t. Imports of clinker also rose, by 33% to 97,700t. The government attributed the growth of imports to rising cement demand and prices in Armenia during 2023.

Lithuania: Akmenes Cementas has benefitted from a European Union (EU) ban on cement exports from Belarus in response to the Russian-led invasion of Ukraine in 2022. The subsidiary of Germany-based Schwenk Zement reported a profit of Euro16m in 2022, according to the Baltic News Service. This is its first recorded profit since 2013. Artūras Zaremba, the head of Akmenes Cementas, added that higher cement prices, further borrowing from its parent company and fixed electricity prices also helped it make a profit.

The company’s income grew by 53% year-on-year to Euro134m in 2022 from Euro87.5m in 2021. Its cement sales volumes increased by 6% to 1.5Mt and cement production rose by 8% to 1.1Mt. Around 1.1Mt of cement was sold domestically with the remainder exported to other countries within the EU. Cement sales are expected to fall in 2023 due to changes in the local market.

Kazakhstan: The Ministry of Industry and Infrastructural Development has lifted a ban on imports of Portland cement, alumina cement, hydraulic cement and clinker into the country. A three-month ban on such imports began in late April 2021, according to the Trend News Agency. Imported cement must conform to new quality standards introduced by the ministry’s Technical Regulation and Metrology Committee in July 2021.

Kuwait: The Ministry of Commerce and Industry has banned all export and re-export of cement and other construction materials from Kuwait. However, it has allowed individual citizens to import construction materials for personal use. The ban is part of a raft of a measures intended to stem the increase in building material prices. The Kuwait News Agency has reported that cement prices rose after the resurgence of the coronavirus outbreak in India suspended Indian imports.

The ministry subsidises building materials including cement and concrete. In May 2021 it paid US$45m towards such subsidies. It continues to monitor the cement market and cement production for ‘unlawful’ price rises.

Kuwait’s cement production capacity is 9.0Mt/yr, while 2020 consumption was 6.0Mt.

Uzbekistan: Imported cement has begun to enter Uzbekistan after the government ended a ban on the ‘import of cement products’ on 23 May 2020. Uzbekistan Daily News has reported that the protectionist measure was lifted due to a spike in cement demand from the construction sector following an easing in the country’s coronavirus lockdown.

Kazakhstan: The acting Minister of Industry and Infrastructure Development of Kazakhstan has signed an order regarding the regulation of several types of cement. This includes the provision for a ban on the import of cement from countries not within the Eurasian Economic Union (EEU) for six months from Monday 27 April 2020. Specifically the ban concerns cement clinkers, Portland cement, alumina cement and other forms of hydraulic cement.