Displaying items by tag: Export

Asia Cement unveiled a selective catalytic reduction (SCR) unit at its Jecheon plant this week. The Korea Cement Association (KCA), government representatives and staff from other cement companies were present at a demonstration. The US$25m project has been supported by the Ministry of Industry and Trade. It was originally announced in late 2023, has been running on a pilot basis for two months, and is expected to start full operation shortly. The cement sector in South Korea will be subject to tighter emissions controls in mid-2027 and further SCR installations are expected.

Earlier in 2025 the KCA estimated that installing SCR units on all 35 active clinker production lines in the country would cost around US$675m with an additional annual running costs. One point to note here is that one of the local sector’s commonly used alternative fuels (AF), waste synthetic resin, impedes the SCR process. Subsequently, it has to be run at higher temperature, which increases running costs.

The local cement industry has faced a mixed response to its uptake of AF in recent years. One strand of this has been a movement against so-called ‘trash cement.’ This culminated in the Ministry of Climate, Energy and Environment amending the Waste Management Act in November 2025 to make it mandatory for cement products to disclose on the packaging the means to check which ‘waste’ materials were used in their manufacture. This appears to include both supplementary cementitious materials (SCM) and AF. The government is now intending to make it possible for citizens to check the type of cement used in newly-constructed buildings. The KCA reported that the share of blended cements (i.e. those made with SCMs) was 15% in 2024. The rate had gradually decreased over the last decade from 19% in 2015. South Korean cement producers had a AF co-processing rate of 35% in 2021. The main fuels being used in this way were waste synthetic resin, waste tires and waste rubber, with the first being used the most.

Graph 1: Cement sales in South Korea, 2019 - 2025. Source: Korea Cement Association.

Meanwhile, cement producers in South Korea have turned to exports in 2025 in response to poor construction levels and growing input costs. The KCA revealed this week to local press that exports are expected to grow by 52% year-on-year to 4.5Mt in 2025 from 3Mt in 2024. Local shipments, however, are anticipated to fall by 16.5% to 36.5Mt from 42.9Mt. Producers have focused their export strategies towards South America and Africa in response to competition in the export market in South-East Asia from China and Vietnam, producers. For example, Halla Cement started targeting Cameroon and Guinea in 2025 following previous favourite destinations such as Peru and Chile. Exports are still lower than they were in the mid-2010s. In 2015, for example, the country exported 7.3Mt of cement and clinker. However, the share of the share of exports to total sales is at its highest level for at least a decade.

The necessity of running kilns at certain levels rather than simply idling them has also emerged in recent reporting. The reason given was to “...maintain a minimum allocation of carbon emission allowances.” The detail is lacking but this may sound familiar to readers familiar with the European Union (EU) Emissions Trading Scheme (ETS). Following the financial crash in 2008, for example, an over-allocation of carbon credits enabled some producers to make money despite falling demand for cement. This is not to say that the same thing is happening in South Korea. Merely, that any ETS can potentially face structural issues in a declining market.

The South Korean cement market is facing tough times, with the KCA further anticipating a decline of 1.3% in 2026. Environmental regulations such as the new emissions controls are further putting up costs. One peculiarity of the local market is the scrutiny that the easiest routes to decarbonisation, SCAs and AFs, are facing. Giving the public the tools to check this kind of information is admirable. Yet it creates extra hurdles for a sector trying to decarbonise at the same time as a construction market construction. Good luck!

The Global CemFuels Asia Conference will take place on 2 - 3 February 2026 in Bangkok

Iran: Cement output fell by 10% year-on-year to 31.7Mt in the first half of 1403 (21 March – 22 September 2025), down from 35.1Mt, according to Ali Akbar Alvandian, secretary of the Cement Industry Association. He attributed the decline to weaker domestic demand and energy constraints.

Clinker output also dropped by 10% in the first quarter (21 March – 21 June 2025), recovered in July and August 2025, then declined by 4.5% in September 2025. Cement production in the sixth month (22 August - 21 September) fell to 5.7Mt from 6.4Mt a year earlier.

Exports rose by 7% to 6.9Mt of cement and clinker, while domestic demand fell by about 10%. A nationwide power cut in May 2025 reportedly halted production and temporarily increased prices.

South Korea: Cement exports are expected to reach 4.5Mt in 2025, up by 52% year-on-year, according to the Korea Cement Association, as producers seek to offset weak domestic demand and rising raw material costs. Domestic shipments are projected to fall by 16.5% to 36.5Mt, the lowest level in 34 years.

Despite high transport costs and limited profitability, producers including Ssangyong C&E, Halla Cement and SAMPYO Cement are increasing exports to cover fixed costs and maintain kiln operations to retain carbon emission allowances.

A cement industry official said “The domestic economy is as bad as during the global financial crisis, but we cannot stop the plants, so we are sending the cement piling up overseas. On top of that, we need to keep the plant kilns running to maintain a minimum allocation of carbon emission allowances, so the goal is also to secure at least fixed costs.”

Another official said “Ssangyong C&E, Halla Cement and SAMPYO Cement have plants on the coast, so their transportation expenses are lower than those of corporations located inland. For inland companies, transportation costs double when you add ocean freight to land shipping, so it is difficult even to choose exports as a stopgap measure.”

Halla Cement increased exports by 63% year-on-year, expanding sales beyond Latin America into African markets including Cameroon and Guinea. SAMPYO Cement also signed new export contracts with South America in the second quarter of 2025. The Korea Cement Association forecasts 2026 demand will fall further to 36Mt, down by 1.3% from 2025, citing continued stagnation in the domestic construction sector.

Türkiye: Medcem has shipped its first 20,000t of CEM I 52.5 N cement to its new terminal in Antwerp, Belgium, with discharge scheduled for 8 December 2025, according to Platts, part of S&P Global Energy. A second shipment of 5000t to the company’s new terminal in Trieste, Italy, will discharge during the week of 15 December 2025. Business development and investment director Enver Celikbas said that the company has three terminals in the UK, and that it plans to send its first vessel to Glasgow at the beginning of 2026. Medcem plans to export 70,000-100,000t of cement to Antwerp and 60,000-80,000t to Trieste in 2026.

Celikbas said “We are looking to become a more vertically-integrated company, which helps us manage our costs, operations, and supply. It's like a hedging strategy that we initiated after commissioning our new 9000t/day kiln.”

He added that an upgrade to Medcem’s clinker kilns will be completed by the end of 2026 and that the company is seeking new sources of supplementary cementitious materials to boost supply. All supply will continue to come from Medcem’s plant in Türkiye unless otherwise required.

Celikbas added “We are continuously searching and negotiating various projects and hope to sign for our third terminal in Europe very soon.”

The Indonesian Cement Association (ASI) has warned that cuts to the Nusantara Capital City project had reduced cement sales so far in 2025. Yet also this week the ASEAN Federation of Cement Manufacturers (AFCM) launched its 2035 AFCM Decarbonisation Roadmap. Here is a round-up of recent news from the cement sector in Indonesia.

ASI data shows that local cement sales volumes fell by 2.5% year-on-year to 51.9Mt in the first 10 months of 2025 from 53.2Mt in the same period in 2024. Cement production decreased by 5.6% to 52.9Mt. Lower demand was reported in Kalimantan and Java. However, it rose in Sumatra and Nusa, in part, due to road construction. Sadly, Sumatra has been badly affected by floods this week. National cement exports grew by over 20% to 1.1Mt. The ASI is currently hopeful that a government-backed home renovation programme might stimulate demand.

Graph 1: Domestic cement sales and exports in Indonesia, 2019 - 2025. Source: Indonesian Cement Association (ASI). Note: Figure estimated for 2025, exports include cement and clinker.

The general picture can be seen above in Graph 1. The local cement sector has generally had a capacity utilisation issue since the mid-2010s. Domestic sales started to catch up but the Covid-19 pandemic disrupted the market. Meanwhile, exports of cement and clinker have been steadily rising since 2014. These are dominated by clinker exports, with the single largest destination being Bangladesh. Other major targets include Taiwan and Australia. The country’s relatively low consumption of cement per capita suggests that the utilisation rate will grow over time.

The local production market is dominated by state-owned Semen Indonesia (SIG) (with a 48.5% share), followed by Indocement (29.1%), Conch Cement Indonesia (7.1%) and Cemindo Gemilang (6.6%). SIG’s sales volumes in the first nine months of 2025 roughly follow the general trend reported by the ASI with local sales down by 1.8% year-on-year to 27.5Mt and exports up by 25.3% to 5.1Mt. The group’s sales revenue and earnings before interest, taxation, depreciation and amortisation (EBITDA) dropped by 3.8% to US$1.52bn and 23.8% to US$198m respectively. Indocement’s revenue fell by a similar rate. Both companies anticipate a modest recovery in 2026.

Something to note from SIG’s financial results and related discussions in 2025 (and earlier) has been its approach to marketing and selling its cement brands in a highly competitive environment. It says it changes its brand mix in different regional locations with varying combinations of market leaders with premium pricing and so-called ‘fighting brands’ with competitive pricing. Yet, eco-brands received a mention in addition to the other two groups in the third quarter report analysts’ discussions suggesting an appetite for potentially lower-clinker cements in a developing market such as Indonesia.

This leads to the second Indonesia-related news story of the week: the 2035 AFCM Decarbonisation Roadmap. The plan intends to reduce net CO₂ emissions from the cement sector in the region by 16% to 190Mt/yr from 228Mt/yr in 2020. 58% of this reduction will be achieved through the use of alternative fuels, 33% via the use of low-carbon cements and 9% through the use of renewable energy sources. Work towards carbon capture, utilisation and/or storage (CCUS) is starting with the aim of supporting capture pilots in the region and planning towards CO₂ transport and storage networks. Similarly, the roadmap urges producers to identify and prepare to use new secondary cementitious materials such as calcined clay and construction and demolition waste.

The race between capacity building and market share has been a familiar one in coverage of the cement market in Indonesia in recent decades. Provided the main companies can endure the competition, it looks set to continue, while demographic trends indicate the need for continued investment. Otherwise more market consolidation is to be expected when the utilisation rate dips too low. What is new though are the higher levels of blended cements and the changes this brings to the market. This can be seen above in the marketing strategy of SIG and the regional decarbonisation strategy. Similar trends are happening everywhere but the effects on a highly competitive market could be pronounced. Particularly if those government-backed schemes that the sector anticipates promote it.

The Global CemFuels Asia Conference will take place on 2 - 3 February 2026 in Bangkok

Algeria: Biskria Cement loaded 28,000t of white cement at the Port of Annaba for export to the US, according to local press. The shipment forms part of the company’s strategy to expand its international footprint, with a target of exporting 0.2Mt/yr of cement.

Pakistan: Since the closure of the Pakistan-Afghanistan border on 11 October 2025, Afghan coal imports and cement exports have been halted, raising prices and prompting northern cement producers to shift to coal imports from South Africa, Indonesia and Mozambique. The move follows rising tensions between the two countries, with the cement sector among the most affected.

A manufacturer said Afghan coal is no longer available and ruled out using Iran as an alternative route due to the lack of banking channels and the impracticality of transporting coal. It said Afghanistan accounts for about 7% of Pakistan’s cement exports. Topline Securities reported that DG Khan Cement will continue using imported coal, while some producers have begun importing RB2 grade.

Insight Research has reported that Cherat Cement, Fauji Cement and Maple Leaf Cement are among the most exposed, with Afghan exports accounting for 9.8%, 5.8% and 3.1% of their sales, respectively.

Saudi Arabia: Al-Jouf Cement has signed a one-year, US$10m sales agreement with Towa Development to export cement to Syria and Palestine. The contract, effective from 30 November 2025 to 29 November 2026, reportedly represents over 14% of the producer’s total revenue based on its latest audited results. The company will supply all types of cement to Towa Development for export throughout the contract period.

Indonesia: Cement sales fell by 2.5% year-on-year to 51.9Mt between January and October 2025, amid a reduction in the national IKN capital city construction budget to US$889m. Cement production also saw a decline of 6%, reaching 52.9Mt. The Indonesian Cement Association (ASI) said weakening demand occurred in Kalimantan, where sales dropped by 828,356t to 3.88Mt, and Java, where sales fell by 556,468t to 27.1Mt.

Secretary general Ari Wirawan said “Domestic cement sales from January to October 2025 continue to show a negative trend, affecting nearly all regions with a 2.5% decrease compared to the same period in 2024.”

Sales in Sumatra and Nusa Tenggara rose by 2% and 3% respectively due to toll road and tourism infrastructure projects. Exports rose by over 20% to 1.11Mt, with shipments going to Bangladesh, Taiwan, Australia, Timor Leste and Sri Lanka. Production dropped by 6% to 52.9Mt, with utilisation reaching 53%.

ASI chair Lilik Unggul Raharjo said a proposed increase in the home renovation programme budget to US$2.6bn could lift annual cement consumption by 6.2Mt. He said “A 4Mt increase in demand is admittedly somewhat optimistic. Nevertheless, our fervent hope is that the increased budget for home renovations will indeed come to fruition.”

Senegal: The country’s cement sector recorded a slowdown in August 2025, according to provisional figures from the Directorate of Forecasting and Economic Studies (Dpee), cited by the National Agency for Statistics and Demography (Ansd). Cement production fell by 14% month-on-month following several months of growth, reflecting weaker domestic and external demand. The decline was driven largely by a 24% drop in local sales, linked to a slowdown in construction activity and inventory adjustments. Exports also eased, falling by 8% from July 2025.

Despite the monthly setback, the sector maintained positive momentum year-on-year. Production in August 2025 was 10% higher than in August 2024, supported by strong export growth of 44% as regional demand remained firm. Local sales posted a modest increase of 0.9% compared to August 2025.