Displaying items by tag: Outlook

Vietnam: State-owned Vietnam Cement Industry Corporation (Vicem) has projected that national full-year cement production will rise by 1.7% to 118Mt. Meanwhile, the cement market leader believes that demand will rise by 5.4% to 68.3Mt in 2023. This corresponds to an oversupply of 73%, compared to 78% in 2022.

Việt Nam News has reported that the government recorded a 7% year-on-year decline in Vietnamese cement production to 43Mt and a 10% drop in demand to 39Mt in the first half of 2023.

Uzbekistan: United Cement Group (UCG) subsidiary Kuvasaycement is building a sixth grinding unit at its Quvasoy cement plant in Fergana. Business World Magazine has reported that China-based Sinoma International Engineering will supply the equipment for the expansion, consisting of a roller press and ball mill, equipped with a separator and pre-grinder.

Kuvasaycement general director Denis Nikitin said "In recent years, we have systematically replaced outdated equipment, renewed our car fleet, installed new filters to reduce cement dust emissions and modernised cement mills in accordance with the highest requirements to which UCG adheres. The cement market in Uzbekistan is rather saturated and, in order to increase production competitiveness, we decided to commission one more cement mill to 'cover' the capacity of the existing five mills. It is also connected with additional demand for products for the construction of bridges, roads and airports. This is state-of-the-art equipment with new grinding capabilities that we have been missing."

Malaysia: Malayan Cement expects its sales of cement to remain level at 8Mt/yr throughout the 2023 and 2024 financial years. The New Straits Times newspaper has reported that the producer forecast consistent declines in its cement prices over the period. Meanwhile, it expects the price of Indonesian coal, which it imports for use as fuel, to drop to US$285/t in the 2023 financial year, then by 42% to US$165/t in the 2024 financial year and by 12% to US$145/t in the 2025 financial year.

India: ICRA says that all-Indian cement production capacity will rise by 6% year-on-year to 610Mt/yr during the 2024 financial year. The ratings agency forecasts that the Indian cement industry will invest US$14.6bn over the four years up to the end of the 2027 financial year to expand its capacity by 26% to 725Mt/yr. The Financial Express newspaper has reported that costs of cement production fell in the second half of the 2023 financial year, which ended on 31 March 2023. The trend is expected to continue throughout the 2024 financial year. Meanwhile, ICRA has forecast domestic demand growth of 7 - 8% year-on-year in the 2024 financial year.

India: Birla Corporation says that it expects to sell 18.1Mt of cement during the 2024 financial year (1 April 2023 - 31 March 2024), up by 15% year-on-year from 15.7Mt in the 2023 financial year. That financial year, sales grew by 11% year-on-year. Looking ahead, the producer expects its new 3.9Mt/yr Mukutban cement plant in Maharashtra increase its sales. It said that it may also carry out future expansions at its Chanderia cement plant in Rajasthan.

The Hindu BusinessLine newspaper has reported that managing director and CEO Sandip Ghose said "Our strategy is based on prices not going up significantly. Volumes are going to move in a healthy manner unless there are any major dislocations, disruptions or hiccups going forward. I am very bullish on the India growth story." Regarding the company's Gujarat market in Western India, he said "Gujarat had gone through exponential growth in the past year, which boosted certain companies' profitability because of the bullet train, the expressway and other developments." Ghose forecast similar demand growth in Madhya Pradesh and Uttar Pradesh.

World: Market Research Future has forecast a composite annual growth rate (CAGR) of 5.3% between 2022 and 2030. This would result in a market value of US$505bn in 2030, compared with US$335bn in 2022. The report added that the rate of new construction projects is increasing across all regions.

India: Dalmia Bharat has announced a capacity target of 120Mt/yr by the end of 2031. The Business Standard newspaper has reported that the producer will make total investments of US$2.31bn in its on-going growth drive. The sum includes US$723m invested in the acquisition of Jaypee Group's 9.4Mt/yr cement business in December 2022. Dalmia Bharat's eventual investments in erecting new capacity are estimated at US$1.09bn, US$485m (44%) of it in its North Indian cement business.

CEO Puneet Dalmia said “We are executing the largest capital expenditure in our history.” Regarding the Jaypee Group deal, Dalmia said "The acquisition will give us access to Central India’s and North India’s markets and we would look for more acquisition opportunities in the mid segment. We expect the industry to consolidate further in the coming years. India will invest US$1Tn in infrastructure in the next decade, and that will create a sizeable demand growth for cement.”

Ireland/US: Shareholders have approved Ireland-based CRH's board recommendation to transition to a US primary listing on the New York Stock Exchange. The company says that it will effect its transition on or around 25 September 2023. This will entail delisting shares from Ireland's Euronext Dublin, while retaining a standard listing on the UK's London Stock Exchange (LSE).

CRH derived 75% of earnings from North America in 2022. It expects the US market to be a key driver of future growth due to the country's growing populace and construction needs.

CEO Albert Manifold said "We are pleased to see such strong shareholder support for the listing transition, as it marks an important milestone in our development and will enable CRH to fully participate in the significant growth opportunities that lie ahead.”

US: Eagle Materials reported sales of US$2.1bn in 2022, up by 15% year-on-year from 2021 levels. The producer's earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 19% to US$782m. Its cement sales rose by 7% to US$1.1bn due to increased prices, despite a drop in volumes. Throughout the year, the company increased its production of Portland limestone cement (PLC).

President and CEO Michael Haack said "Looking ahead, we anticipate continued attractive fundamentals in our markets, despite headwinds relating to higher interest rates and affordability constraints in single-family residential construction. Among the favourable demand factors we expect will affect our results in future periods are projected funding increases for infrastructure projects and healthy demand for heavy industrial projects and multi-family residential construction. We remain well-positioned to capitalise on these conditions, given our geographical footprint across the (Central) US Heartland and fast-growing Sun Belt (Southern US) and our financial strength and flexibility."

India: Ramco Cements' sales were US$987m during the 2023 financial year, up by 36% year-on-year from US$726m during the 2022 financial year. The producer sold 15Mt of cement and dry mortar products, up by 36%. The Times of India newspaper has reported that the producer's profit after tax declined by 62% to US$41.5m from US$108m.

The producer expects that anticipated infrastructure investments and a 'normal' monsoon will maintain strong cement demand in India in the full-year 2023 financial year. It forecast growth in its profit margins from the second quarter of the 2024 financial year (July - September 2023) onward.