Displaying items by tag: data

Vietnam: Cash flow issues have been noted as a risk for local cement producers struggling to create enough revenue to continue operations. Revenue is reliant on output, local consumption and exports but these are all falling with raw material costs rising and no improvement forecast for the real estate in the short-term, according to the Việt Nam News newspaper. Examples of cement companies reporting a loss include Quang Ninh Construction and Cement in the fourth quarter of 2022. An estimate by the Quang Ninh Tax Department also showed that the company owed more than US$4.m in July 2021, making it the largest debtor in the province’s building materials industry. Quang Son Cement, based in Thanh Hoa province, also reported an after-tax loss of US$13.5m in 2022.

Data from the Vietnam Association for Building Materials (VABM) shows that the cement industry’s production capacity reached 114Mt/yr in 2022, with an estimated output of 93Mt in 2022, giving it a capacity utilisation rate of 82%. However, domestic consumption accounts for around 60 –65Mt/yr, with exports accounting for the remainder. Information from the General Statistics Office reveal that local cement production fell by just under 10% year-on-year in the first quarter of 2023.

Thai Duy Sam, vice president and general secretary of VABM, told Vietnam Investment Review “In recent years, the cost of input materials, particularly coal, has increased multiple times. It has an effect on both production and output.” He added, “Currently, several significant corporations continue to ensure production. However, small enterprises with production lines that can produce 1 - 2t/day face both manufacturing and consumption challenges.” He continued by saying that the production lines of older plants have high depreciation costs and greater heat and electricity consumption than modern units. In addition, these smaller and older plants often lack a trademark, which can make the sales process harder. Commenting on the real estate market, Sam noted complicated payment processes can cause problems with both construction companies and building material suppliers. He cited examples of how the payment for the building materials used to build the Dong Tru and Vinh Tuy bridges had still not been settled 10 years after completion.

Spain: Cement consumption grew by 7% year-on-year to 3.69Mt in the first quarter of 2023 from 3.46Mt in the same period in 2022. The Spanish cement association Oficemen noted that March 2023 had been a strong month for growth, especially due to a transport strike in March 2022, and that elections may have also helped due to a subsequent boost in infrastructure spending. Despite this, exports fell by 6% to 1.34Mt from 1.43Mt.

Brazil: Data from the Brazilian National Cement Industry Association (SNIC) shows that total cement sales fell by 1.2% year-on-year to 14.7Mt in the first three months of 2023 from 14.9Mt in the same period in 2022. SNIC has blamed the decline in consumption on a poor economic situation, household debt and political uncertainty. Sales fell in all regions, except for the northeast, with a particular dip in the central-west area. Exports dropped by just under 50% to 58,000t. 12-month accumulated sales have been following a general downward trend since a peak of 64.8Mt in June 2021 compared to 62.5Mt in March 2023.

Paulo Camillo Penna, the president of SNIC, said “Projecting the government's expectation and the use of the input in the promised units until 2026, the cement industry in Brazil projects an increase of 8Mt of cement, if all constructions are made of masonry blocks, and of 12Mt, in the case of using concrete walls.”

Bangladesh: Cement producers and traders exported US$9.68m-worth of cement during the first nine months of the 2023 financial year. This corresponds to a year-on-year rise of 49% from US$6.51m during the first nine months of the 2022 financial year. The Bangladesh Export Promotion Bureau is targeting full-year growth of 15% year-on-year to US$11m from US$9.57m. Maritime Gateway News has reported that MI Cement Factory contributed 50% of Bangladesh’s cement exports so far in the 2023 financial year.

Bangladesh’s main trade partners for its cement exports for India, Nepal, Sri Lanka and the Maldives.

Europe: Cemex has launched its latest packaging design for its Vertua reduced-CO₂ product range at the Low Carbon World exhibition in Paris, France. The new design incorporates products' scores across five 'sustainability attributes:' emissions reduction, energy efficiency, conservation of water, recycled content and design optimisation. Cemex will now deploy the design across Europe by June 2023.

Cemex's Europe, Middle East and Africa regional president Sergio Menendez said “Cemex is attuned to the need to focus on all aspects that can make a product more sustainable - not just achieving a lower carbon footprint. With the updated classification system for Vertua, customers can now more easily identify which of our products leverage the cutting-edge technology and innovation that will enable them to overcome the challenges they are currently facing in construction and renovation." Menendez concluded "The enhanced Vertua brand represents a more ambitious and stronger approach: from a group of low carbon products to a family of products and solutions that encompass more sustainable attributes and contribute to our company vision of building a better future.”

Argentina: Cement shipments reached 0.96Mt in January 2023, while exports totalled 7403t, a joint increase of 8.9% year-on-year and an increase of 3.0% compared to December 2022. No imports were registered.

Spain: Cement consumption fell by 1% year-on-year to 14.9Mt in 2022 from 14.8Mt in 2021. The Spanish cement association Oficemen blamed the slight decline on bad weather in December 2022. It also noted that the consumption volume in 2022 was the second highest in the last decade. Overall, Oficemen said that the market experienced a strong start in 2022 but energy costs and inflation, partly linked to the Russian invasion of Ukraine, started to slow down sales from May 2022.

Cement exports fell by 16.8% to 5.62Mt from 6.75Mt. Imports decreased by 5.4% to 1.35Mt from 1.43Mt. Oficemen has linked the fall in exports to high domestic energy and CO2 emission costs since 2019.

US: US cement companies produced 95Mt of cement in 2022, up by 2.2% year-on-year from 93Mt in 2021, according to the United States Geological Survey (USGS). The country exported 900,000t of cement and clinker, down by 4.3% from 940,000t. The USGS recorded a 9.1% leap in apparent national consumption, to 120Mt from 110Mt. Cement imports helped to close the gap, rising by 20% year-on-year to 24Mt from 19.9Mt.

Among the US's main trade partners for cement imports, cement production fluctuated in 2022. Turkish cement production rose by 3.7% year-on-year to 85Mt, Mexican cement production fell by 3.8% year-on-year to 50Mt and Vietnamese cement production rose by 9.1% year-on-year to 120Mt. Globally, the USGS estimated a year-on-year cement production decline of 6.8% to 4.1Bnt.

Iran: Data released by the Industry, Mining and Trade Ministry reveals that the country produced just over 48Mt of cement in the first nine months of the local calendar year that started on 21 March 2022. This fell slightly, by 1% year-on-year, from the previous year, according to the Tehran Times newspaper. In 2021 the country produced 63Mt of cement and exported 14.4Mt. Exports grew by 4% year-on-year to 7.6Mt in the first seven months of the current calendar year.

Brazil: Data from the Brazilian National Cement Industry Association (SNIC) shows that sales of cement fell by 3% year-on-year to 63.1Mt in 2022 from 64.4Mt in 2021. Sales fell in the Nordeste, Sudeste and Sui regions but grew elsewhere. Exports declined by 14% to 0.40Mt from 0.47Mt. SNIC has blamed the falling sales on a declining real estate sector, high inflation rates and a poor response from a new house-building campaign. It also attributed the Football World Cup in late 2022 as having a detrimental effect on national cement sales! SNIC forecasts sales growth of 1% in 2023 despite considerable market uncertainty.