Displaying items by tag: China
China Resources Cement increases turnover as profit falls in first nine months of 2021
25 October 2021China: China Resources Cement’s consolidated turnover was US$3.96bn in the first nine months of 2021, up by 13% year-on-year. ET Net News has reported that the company saw its net profit fall by 28% to US$683m.
China to set cement production energy efficiency benchmark
25 October 2021China: The government plans to implement a benchmark level of energy efficiency for cement plants by 2025 in order to realise its national goal of no CO2 emissions growth by 2030 and carbon neutrality by 2060. Local press has reported that the government has yet to set a specific benchmark for the cement industry. The corresponding figure for aluminium production will be 13,000kWh/t.
Tangshan Jidong Cement to incorporate BBMG East Cement
21 October 2021China: Tangshan Jidong Cement has received the approval of the China Securities Regulatory Commission (CSRC) to incorporate its subsidiary BBMG East Cement. Tangshan Jidong Cement is a joint venture formed by BBMG and Jidong Cement in early 2019.
Energy costs mounting for the cement sector
20 October 2021UltraTech Cement, Taiheiyo Cement, Cimtogo and the Chinese Cement Association (CCA) have all been talking about the same thing recently: energy prices.
India-based UtraTech Cement reported this week that coal and petcoke prices nearly doubled in the second quarter of its current financial year, leading to a 17% rise year-on-year in energy costs. Japan-based Taiheiyo Cement released a statement earlier in October 2021 saying that due to mounting coal prices it was planning to raise the price of its cement from the start of 2022. It principally blamed this on increased demand in China and a stagnant export market. It added that it was ‘inevitable’ that prices would rise further in the future. Meanwhile in West Africa, Eric Goulignac, the chief executive officer of Cimtogo, complained to the local press that the reason the company’s cement prices were going up was due to a 250% increase in the cost of fuels for the Scantogo plant and an increase in the price of sea freight of over US$35/t for transporting gypsum and coal.
Other places where the cost of energy has been biting cement producers include Turkey and Serbia. In the former, Türk Çimento, the Turkish Cement Manufacturers' Association, warned in June 2021 that the price of petcoke had nearly tripled over the previous year. Whether it was connected or not, the Turkish Building Contractors Confederation (IMKON) organised a strike in September 2021 due to high costs. The confederation claimed that the price of cement had tripled over the last year. In Serbia electricity prices have risen sharply in recent months in common with much of Europe. Local press reported comments last month from President Aleksandar Vučić saying that an unnamed cement producer had warned of a 25% rise in the price of cement if electricity prices remained high. In the UK the Energy Intensive Users Group (EIUG), a network of lobbying groups for heavy industry including cement, has been holding talks with the government on how to cope with growing energy costs. Finally, in the US, Lhoist warned in September 2021 that is was going to increase the cost of all of its lime products from the start of November 2021 due to increasing gas prices. These are just some of the reactions by cement and lime producers to the current global energy market. No doubt there are many more.
The current global energy crunch has widely been attributed to the waking up of economies following coronavirus-related dormancy in 2020 with supply failing to meet demand. Gas prices have risen to record highs and this has promoted electricity producers to switch to coal in the US, Europe and Asia. This in turn has put pressure on industrial users as both electricity and coal prices have grown and governments have taken action in some cases to protect domestic users. In Europe price pressure has lead to reductions in ammonia and fertiliser production. Power cuts have been reported in China and India.
In China a variety of factors have converged to create a crisis. These include shutting down coal mines on environmental and safety grounds, anti-corruption measures and even promoting mine closures to facilitate clean skies for national events such as the Communist party’s 100th anniversary. Disruption to import sources such as a ban on Australian coal on political grounds, flooding in Indonesia and a renewed coronavirus outbreak in Mongolia can’t have helped either. Thermal coal futures traded on the Zhengzhou Commodity Exchange hit a high of US$263/t on 15 October 2021 marking a 34% rise through the week and the largest weekly growth since trading started in 2013. The International Energy Agency estimates that coal demand in China grew by over 10% year-on-year in the first half of 2021 but coal production increased by just over 5%.
Industrial users have suffered as energy supplies have been rationed and producers asked to cut output. In September 2021 cement output fell by 12% year-on-year to 205Mt from 233Mt in September 2020. This is the lowest monthly figure for September since 2011. It’s also not the usual direction of double-digit rate of change that the Chinese cement sector is used to. The CCA attributed this mainly to energy controls, power shortages and high coal prices in Jiangsu, Hunan, Zhejiang, Guangdong, Guangxi, Yunnan, Shandong and elsewhere. Cement output for the first nine months of 2021 is still ahead of 2020 at 1.77Bnt compared to 1.67Bnt but it’s been slipping noticeably since July 2021.
This will leave energy users, including cement producers, watching the weather forecasts rather closely this winter. Should the Northern Hemisphere suffer a cold one then energy prices such as coal will reflect it. Industrial users may also become subject to energy rationing in many places. The knock-on effect of this then will be higher cement prices. However bad the winter does turn out to be though we can expect more cement companies trying to explain bashfully why their prices are going up. On the plus side any producer that can diversify its energy mix through solar, alternative fuels or whatever else is likely to be doing so soon if they are not already.
China: Anhui Panjing Cement has ordered an upgrade to its production line from KHD and AVIC. The project includes: installing new triple cyclones in conjunction with existing preheater top stage twin cyclones; a partial modification of downcomer duct; installing a new preheater fan; adding optimised and larger dip tubes for the existing cyclones; installing a new Pyrobox type calciner firing system; adding new raw meal pipes for the two lowest cyclone stages; making calciner modification within the existing preheater building; and installing a new kiln drive system. Where possible the project plans to use reuse existing equipment. It is scheduled for completion by January 2022. It follows a previous upgrade at the plant in 2020 – 2021.
Other recent orders that KHD has announced with China-based cement companies include an upgrade to a production line at Hongshi Group’s Lanzhou plant in Gansu province and the installation of NOx-reducing modifications on a 5000t/day clinker production line operated by China United Cement Baoding.
Nepal Electricity Authority completes switching station for Huaxin Cement and Vaidya Group’s Rorang cement plant
18 October 2021Nepal: The Nepal Electricity Authority (NEA) has completed and commissioned a switching station to supply power for Huaxin Cement and Vaidya Group’s upcoming Dhading cement plant in Rorang. The Republic newspaper has reported that, when operational, the plant will receive 20MW of power via the switching station. Two transmission lines with capacities of 33kV and 11kV connect the facilities.
The US$125m Dhading cement plant awaits commissioning following the completion of its construction in August 2021.
Taiheiyo Cement reports increased costs
15 October 2021Japan: Taiheiyo Cement says that the cost of producing its cement has increased throughout 2021. The company said the coal prices have risen due to increased coal demand in China and a reduction in exports from coal-producing countries. It anticipates further rises in the price of coal. Additionally, it foresees a rise in maintenance costs as the equipment at its plants nears the end of its service life. The producer says that it is endeavouring to improve productivity and reduce costs.
Tangshan Jidong Cement to issue US$155m-worth of bonds
08 October 2021China: Tangshan Jidong Cement has announced plans to issue a tranche of bonds with a total value of not more than US$155m. Reuters News has reported that the issuance is the second by the company.
Domicem orders new production line from Sinoma Construction
06 October 2021Dominican Republic: Domicem has signed an engineering, procurement and construction contract with China-based Sinoma Construction for a 3500t/day clinker production line at its Palenque plant. The scope of the project includes a production line, from raw material feeding to the clinker warehouse and the transformation of the cement mill workshop, according to Digital Cement. The Chinese engineering company previously built the first production line at the site. Domicem’s parent company Colacem said in March 2021 that it was preparing to invest US120m towards doubling the production capacity of the Palenque plant.
Askari Cement orders three Gebr. Pfeiffer MVR vertical roller mills for Nizampur cement plant
23 September 2021Pakistan: Askari Cement has awarded a contract to Germany-based Gebr. Pfeiffer for the supply of three of its MVR vertical roller mills to replace the existing mills at its Nizampur cement plant. Two of the mills will be MVR 5000 C-4 cement mills with the capacity to grind 360t/hr of clinker to a fineness of 3250 blaine. The other mill, an MVR 5000 R-4 raw meal mill, will grind 520t/hr of clinker to a fineness of 12% R90µm. The Chinese contractor Hefei Cement Research & Design Institute will install an SLS V high-efficiency classifier on each of the mills. The upgraded plant is scheduled for commissioning in mid-late 2022.