Displaying items by tag: Import
Pakistan cement sales to grow by 28Mt by 2020 says association
09 January 2017Pakistan: The All Pakistan Cement Manufacturers Association expects local cement sales to grow by 26 – 28Mt by 2020. It made the forecast as part of a six- month review of the industry. Chairman Sayeed Saigol said that local sales grew by 8.6% year-on-year to 19.8Mt in the first half of the country’s financial year to 30 June 2017 from 18.2Mt in the same period in the previous period. Based on current growth trends he added that the industry would need to increase its production capacity. To this end it is increasing capacity to 72.3Mt/yr from the current capacity of 46Mt/yr.
Despite the anticipated growth in cement sales Saigol defended import duties to the countries on the grounds that the government benefits from taxation of the local industry. He has also urged the government to support the industry by placing an anti-dumping duty on Iranian cement. Exports of cement fell by 3.5% year-on-year to 2.91Mt from 3.02Mt with a particular fall in exports to Afghanistan.
Nepal: The value of clinker imported from India into Nepal has risen by 674% year-on-year to US$60.5m in the first four months of the local financial year that started on 16 July 2016 from US$7.8m from the same period in the previous year, according to the Trade and Export Promotion Centre. Dhruba Raj Thapa, president of Cement Manufacturers Association of Nepal, in comments to the Himalayan Times attributed the surge to a lack of raw materials, including limestone, which has forced producers to import clinker from India. He added that government restrictions on opening new mines have restricted the local industry's ability to produce its own clinker.
Union accuses Cementos Charrua of dumping Turkish cement in Uruguay
08 November 2016Uruguay: Fancap, the workers union of the Administración Nacional de Combustibles, Alcoholes y Portland (ANCAP), has criticised imports of cement produced in Turkey by Cementos Charrua. It says that these imports have been dumped in the country at lower than the local price of production, negatively impacting the local industry, according to the El Observador newspaper. Cement is allegedly imported from Turkey and then it is repackaged in bags with the Uruguayan brand for resale. Fancap has asked the government to reassess tariffs for cement imports. It says that these imports are affecting operations at both ANCAP and Cementos Artigas.
CORRECTION: This story originally mentioned Turkey's Çimsa Çimento in relation to Cementos Charrua. Çimsa says it has never been involved in any commercial cooperation with this company in Uruguay.
North Korea: Traders are importing more cement from China to meet demand for rebuilding following floods in North Hamgyong. The government has warned traders that future tenders will rely on how much cement they are currently providing for reconstruction work, according to DailyNK. A source quoted by the media source said that imports are favoured over local cement due to quality differences. The trading companies reportedly buy the cement in China and then donate it for free towards the restoration drive.
Algeria to stop importing cement in 2017 says minister
01 November 2016Algeria: Abdessalem Bouchouareb, the Minister of Industry and Mining, has said that his country will stop importing cement in 2017. He made the comments at a visit to the China Triumph International Engineering (CTIEC) cement plant being built at Adrar, according to the Algeria Press Service. The plant is nearly 90% complete and due to be commissioned at the end of 2016.
"The year 2017 will mark the end of cement imports in Algeria, with the commissioning of all cement plants across the country, whose total annual production capacity is expected to reach 6Mt," said Bouchouareb. He added that industrial projects will allow the country to achieve self-sufficiency in cement and begin to export it.
Ghanaian Ministry of Trade and Industry responds to Cement Manufacturers Association call to halt imports
20 October 2016Ghana: The Ministry of Trade and Industry has responded to calls by the Cement Manufacturers Association (CMA) that it stop imports of cement by saying that the CMA has misrepresented the role of the Cement Monitoring Committee (CMC) and the process of the licensing regime. The CMA took exception to the issuance of permits by the ministry to three foreign cement producers given that they say the country has a surplus of cement, according to the Ghanaian Chronicle newspaper.
In a statement the Ministry of Trade said no authority or mandate has been given to the CMC to instruct or direct the Minister on which firms should be awarded a license and what that company's specific annual imports should be. It added that the CMC's role is intended to give the ministry and all stakeholders access to relevant information and data for the effective implementation of the relevant legislation. It said that the law does not place a ban on imported cement but rather provides a mechanism, rules and procedures for controlling imports.
It went on to explain that the major reason for granting China’s Fujian Cement a licence to import cement into Ghana was because it was building a cement plant in the country and that the company was attempting to establish itself in the market ahead of local production. Fujian Cement originally asked the ministry to import 1.5Mt/yr of cement into the country but this was restricted to 0.5Mt/yr. The ministry also reinforced that it had not granted any import licenses to Dangote Cement and Sol Cement, the companies accused by the CMA of importing cement.
Nigeria: A Federal High Court in Lagos has adjourned legal action by Dangote Cement against Ibeto Cement until 1 November 2016 pending a decision of the Court of Appeal. Dangote Cement is alleging that Ibeto Cement evaded paying taxes on imports of cement to give itself a ‘unfair’ advantage in 2008, 2009 and 2010, according to the National Mirror Newspaper. It is also seeking an injunction against the Ibeto Cement and other defendants in the case from importing cement into the country unless approved by the appropriate authority under the current tax rules.
However, the Federal Government is alleging that Dangote Cement is attempting to minimise its competition. Other defendants in the case also include: IBG Investments Limited, Derima Venture Limited, the Federal Republic of Nigeria, Attorney General of the Federation, Federal Ministry of Finance, the Federal Ministry of Trade and Investment, the Board of Customs and Excise, the Federal Inland Revenue Services and the Nigerian Port Authority.
Ghana: The Cement Manufacturers Association of Ghana (CMAG) has asked the government to investigate all cement imports to the country. The association sent a letter on 6 October 2016 to the Commissioner of the Ghana Revenue Authority (Customs Division) concerning a Chinese vessel carrying 37,000t of cement anchored at Tema, according to the Daily Guide newspaper. The letter, copied to many other government departments, questioned whether licences to import cement to the country could be issued following changes in legislation.
India: Bharatiya Janata Party (BJP) leader and Rajya Sabha MP Subramanian Swamy has urged Prime Minister Narendra Modi to ban imports of cement from Pakistan in the interest of domestic industry and national security. He said that imports of cement without levy of customs duty were introduced in 2007 to augment supply in view of high demand, according to the Press Trust of India. However, he added that the situation has since changed, with the local industry now facing capacity utilisation of below 70%.
"I request you to ban import of cement into the country not only in the interest of growth and sustenance of domestic cement industry but also in keeping with the imperatives of national security. Ban of import from Pakistan will be in the interest of the country's security in the present juncture," Swamy said in a letter to Modi. He added that imports from Pakistan also carried the risk of smuggling of contraband materials like drugs and weapons.
Update on Kenya
14 September 2016Tensions have boiled over regarding imports of cement to Kenya in recent weeks as different importers have received opprobrium in the local press. Last week Dangote Cement was attacked for importing cheap cement into the country from Ethiopia, allegedly off the back of a cheap electricity deal. This week, Chinese imports have been in the firing line, following data reportedly seen by the Business Daily newspaper that showed that the value of Chinese cement imports rose tenfold year-on-year in the first half of 2016.
At the heart of these rows lies a strong demand for cement: Kenya had a cement production utilisation rate of 90% in 2015 according to Kenya National Bureau of Statistics (KNBS) data. It produced 6.35Mt in that year and used 5.71Mt for consumption and stocks. Its utilisation rate has been rising steadily since 2012. It was 93% for the first six months of 2016.
Unfortunately for the local producers this kind of demand attracts competition from within and without. Nigeria’s Dangote Cement is planning to build a 3Mt/yr plant at Kitui and Cemtech Kenya, a subsidiary of India’s Sanghi Group, is planning to build a 1.2Mt/yr plant at Pakot.
Local producer ARM Cement reported both falling turnover and a loss for the first half of 2016. It blamed this on increased competition in Tanzania. However, in 2015 it increased its turnover in Kenya by importing clinker over the border from its new Tanga plant in Tanzania. It also noted a ‘competitive landscape’ in Kenya and lamented the effects of currency devaluation on its financies as a whole. East African Portland Cement had a tougher time of it for its half-year that ended on 31 December 2015, issuing a profit warning of a loss and expected reduced profits despite a rise of 12% in sales revenue. By contrast, Bamburi Cement, LafargeHolcim’s subsidiary, reported both increases in revenue and operating profit in 2015. Although it too noted problems with interest rates and currency depreciation in the country during this period.
The focus on Chinese imports follows Chinese contractors winning some of the biggest infrastructure projects in the country. The China Rail & Bridge Corporation (CRBC), for example, is building a railway between Mombasa and Nairobi. The Business Daily newspaper has found data showing that Chinese cement imports worth US$19.8m to Kenya in the first half of 2016 compared to US$1.99m in the same period of 2015. The background to this is that China has more than doubled the value of all of its imports to Kenya since 2011 according to the KNBS. Total import volumes of clinker from all foreign countries increased by 51% in 2015 from 1.31Mt in 2014, the largest increase in at least five years.
If local cement producers are being locked out of supplying these kind of deals no wonder they are getting angry. However, another angle on what’s happening here might be that local producers who are suffering from increased competition, falling prices and a precarious national financial situation are lashing out at the easiest target. The local press doesn’t appear to have criticised ARM Cement for moving its Tanzanian clinker north of the border for example. Likewise, a Bamburi Cement spokesperson previously said that the producer had supplied 300,000t of cement to the rail project since September 2014, earning it nearly US$10m. Kenya needs cement as it builds its infrastructure. Fortunes will be made and tempers will be lost as it does so.