Displaying items by tag: Production
Algeria to produce surplus of cement in 2017
19 April 2017Algeria: Abdesslem Bouchouareb, the Minister of Industry and Mines, has said that Algeria will report a surplus in cement production later in 2017. The minister said that the country is expecting to produce 30Mt of cement due to newly commissioned plants, according to the Algeria Press Service. He added that a ‘disturbance’ in the cement market had been caused by speculation and that the government was determined protect the local economy. The minister previously announced the commissioning of new plants at Adrar and in Biskra in April 2017.
Peru: Peru’s cement production fell slightly to 2.35Mt in the first quarter of 2017 from 2.47Mt in the same period in 2016, according to data from ASOCEM, the Peruvian cement association. However, production in March 2017 rose slightly, after a period of falling monthly production figures since mid-2016. Despite this, total despatches fell by 6% to 2.3Mt in the first quarter. Exports of cement and clinker fell in the period, but imports of cement grew by 41% to 0.13Mt and imports of clinker grew by 2% to 0.13Mt.
India: The India Ratings and Research has blamed demonetisation and elections for a poor fourth quarter for cement producers in the 2017 Indian financial year. Cement production volumes fell by 15.8% year-on-year in February 2017 and by 5% on a month-on-month basis. India Ratings also attributed the decline to a strong equivalent quarter in the 2016 financial year.
It reported that volumes for the major cement producers contracted by 5% year-on-year in the third quarter. On a regional basis it fell by 3% and 6% for producers in central and northern regions. However, volumes rose sharply, by 21%, in the south. Growth in the southern region has been supported by increases in government spending in the states of Andhra Pradesh and Telangana.
The agency also reported that changes announced by the Ministry of Railways, which requires long-term agreements and contracts for industries like cement, steel and fertilisers, could potentially drive demand for cement. The new policy will provide conditional discounts that could increase the transport of cement through the rail network and cement manufacturers will be able to control freight costs more effectively. However, the availability of wagons during peak periods might also constrain the policy.
Cemex to run Maceo cement plant at reduced capacity
31 March 2017Colombia: Cemex Latam, the Latin American subsidiary of Cemex, intends to operate its Maceo cement plant project in Antioquia at a reduced capacity due to difficulties with its environmental clearance. The cement producer will continue building the 0.95Mt/yr plant but it will reduce its output to 0.25Mt/yr once it is operational, according to Reuters. The Colombian cement producer attempted to reverse the annulment of its environmental permits with the local body in late 2016.
In September 2016 Cemex fired several senior staff members in relation to the Maceo project and its subsidiary’s chief executive resigned. This followed an internal audit and investigation into payments worth around US$20.5m made to a non-governmental third party in connection with the acquisition of the land, mining rights, and benefits of the tax free zone for the project.
Saudi Arabia: Najran Cement has temporarily shut down its second production line due to poor market conditions and high inventory. The line has a clinker production capacity of 3000t/day. The cement producer intends to announce any financial impact arising from the shutdown in its financial report for the first quarter of 2017.
Chinese planners consider 10% cut in cement production
09 March 2017China: The National Development and Reform Commission (NDRC) is considering aiming for a 10% cut in cement production. The Chinese state planning body announced on 6 March 2017 that it is pushing to cut production capacity in a number of industries including coal, steel and cement, according to the Nikkei Asian Review. Some sources place Chinese cement production capacity at up to 3.5Bnt/yr and 30% of this is believed to be surplus. The commission intends to cut production capacity through market control and legislation. The change in policy from the NDRC coincides with the third consecutive year that China’s annual target for real economic growth has been lowered.
Algeria: Serge Dubois, the head of communications at LafargeHolcim Algeria, says that Algeria faces a cement production overcapacity of 10Mt by 2019. In an interview with a local radio station he added that the country will overproduce 1Mt in 2017 and that it imported 3.5Mt in 2016, according to Maghreb Emergent. LafargeHolcim intends to diversify its product range to cope with this anticipated production glut with a focus on roads, airports and industrial users.
Canada: The Greater Vancouver Water District (GVWD) has struck a deal with Lafarge Canada to sell drinking water treatment residuals to the Richmond cement plant for use in cement production. The contract is for a three-year agreement up to a total cost of just under US$1m, according to Postmedia News. The deal follows a 12-month industrial trial that started in mid-2016.
The residuals will be used as a substitute for shale in the production process. Around 10,000t/yr of residuals will be used to replace 2100t/yr of red shale and conglomerate that are currently supplied from a quarry at Sumas Mountain, Abbotsford. The use of residuals doesn’t affect the plant’s Air Quality Permit following stack tests. As part of the agreement Lafarge will need to build additional storage capacity at its plant.
Corporacion Socialista del Cemento expects 6Mt output in 2017
06 February 2017Venezuela: The Corporacion Socialista del Cemento expects to produce 6Mt of cement in 2017 to meet national demand. Marco Tulio Diaz, president of the construction federation Federación Bolivariana de la Construcción, said that distribution channels are to be reinforced, according to the El Universal newspaper. He added the country expects to export 0.3Mt of cement in 2017. In 2016 about 55% of cement production despatched to the popular housing program Gran Misión Vivienda Venezuela and 45% was reserved for the private sector.
Iranian cement production slowing in 2016
31 January 2017Iran: Data from the Ministry of Industries, Mining and Trade of Iran reports that the country’s cement production fell by 1.4% year-on-year to 42.7Mt in the first nine months of the Iranian calendar year that started on 31 March 2016. Cement production has fluctuated in recent years due to weak domestic demand, according to the Trend News Agency. Other issues the cement industry has experienced have included a recession in the local construction industry, low supplies of natural gas, low international oil prices and declining exports.