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Chilean cement despatches grow by 5% to 306Mt so far in 2019

22 November 2019

Chile: Data from the Chilean Construction Chamber shows that cement despatches grew by 5% year-on-year to 3.06Mt in the nine months to the end of September 2019 from 2.91Mt in the same period in 2018. The country reported annual cement despatches of 3.99Mt in 2018, a similar figure to 2017.

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Algerian cement exports expected to reach US$400m by 2021

20 November 2019

Algeria: Trade Minister Said Djellab has revealed that the country’s cement exports are expected to reach a value of US$400m by 2021. Export earnings were around US$20m in 2018 and then tripled to US$60m in 2019, according to the El Mujahid newspaper. The minister made the comments at a ceremony marking an export of cement from a Ciment Lafarge Souakri (CILAS) plant. He added that the local market has a cement production capacity of 40Mt/yr and that only 22Mt/yr is required domestically. Producers are targeting countries in west Africa, including Guinea Bissau, Senegal, Gabon and Mali.

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Solidia Technologies partners with Xpansic CBL Holding Group for cement CO2 monitoring

07 November 2019

US: Solidia Technologies has partnered with Xpansic CBL Holding Group (XCHG) to develop data technology products for precise measurement of CO2 emissions and water usage in cement production. “Digital Feedstock enables industrial consumers to seamlessly connect sustainability ambitions with procurement decisions, wholly disrupting the way the cement industry meets consumer demand for accountability,” said Solidia Technologies CEO Tom Schuler.

Solidia Technologies produces reduced-CO2 concrete with lower-energy cement and water-free CO2 curing.

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SNIC cautious about Brazilian cement sales growth so far in 2019

11 October 2019

Brazil: Paulo Camillo Penna, the president of SNIC, the Brazilian national cement industry union, has expressed caution about growing cement sales so far in 2019. Data from SNIC shows that cement sales grew by 3% year-on-year to 40.5Mt in the first nine months of 2019 from 39.4Mt in the same period in 2018. Growth was driven by central and southern regions of the country, particularly in São Paulo. Exports grew by 22% to 90,000t from 74,000t. However, Paulo Camillo said that apparent growth in 2019 was partly due to a truckers strike in May 2018 that overly depressed the year’s sales. Despite this, he added that a survey of the construction industry released by the National Confederation of Industry (CNI) was showing slow but steady improvement.

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Argentine cement consumption falls by 6% to 8.5Mt so far in 2019

10 October 2019

Argentina: Data from the Association of Portland Cement Manufacturers (AFCP) shows that cement consumption fell by 6% year-on-year to 8.5Mt in the first nine months of 2019 from 9Mt in the same period in 2018. Local despatches dropped by 5% to 8.5Mt to 8.9Mt, although exports rose slightly.

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German cement consumption rises slightly to 29Mt in 2019

10 October 2019

Germany: Data from the German Cement Works Association (VDZ) shows that cement consumption rose slightly to 29Mt in 2018. Imports were 1.5Mt and exports rose by 1.5% year-on-year to 6.3Mt. The association says that this shows the industry is in a stable phase that is expected to continue in 2019 and 2020.

"There has been an upward trend in the German cement market for four years now, thanks in particular to the positive development in the apartment block sector," said VDZ president Christian Knell. He added that annual growth in consumption had slowed but that this was ‘hardly surprising’ given the ‘tight’ capacities along the construction value chain.

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Moroccan cement despatches grow by 2% to 10Mt so far in 2019

08 October 2019

Morocco: Cement deliveries by members of the l'Association Professionnelle des Cimentiers (APC) grew by 2% year-on-year to 10Mt in the first nine months of 2019 from 9.8Mt in the same period in 2018. The growth was driven by building construction, according to Médias 24. However, cement used by the infrastructure segment fell by 15% in the reporting period.

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Half-year update on China 2019

28 August 2019

The publication of CNBM’s financial results presents a good opportunity to take stock of the Chinese cement industry in the first half of 2019. Looking at the big picture first, cement sales rose by 5% year-on-year to 1.03Bnt in the first half of 2019 from 0.98Bnt in the same period in 2018. Graph 1 below shows the sales over the last five years since 2014. Generally, sales are decreasing each year but there has been some variation in the half-year periods.

Graph 1: Cement sales in China, 2014 – 2019. Source: National Bureau of Statistics of China. 

Graph 1: Cement sales in China, 2014 – 2019. Source: National Bureau of Statistics of China.

As the China Cement Association (CCA) pointed out in its summary for the first half of 2019, the cement industry ‘swelled in volume and price’ as industry efficiency grew but that the growth rate dropped ‘significantly’ compared in 2018. By region, as Graph 2 shows, variation can be seen between the south-east of the country where growth was slow or even fell compared to stronger performance elsewhere. Cement production increased by above 20% in Jilin, Shanxi, Shandong, Tibet and Heilongjiang and by over 10% in Hebei, Gansu, Tianjin, and Liaoning. However, it fell in Hainan, Beijing, Qinghai, Guizhou, Guangxi, Hunan, Guangdong and Ningxia. Most of these changes were attributed to either rising or falling demand for cement, except for Jilin where reduced imports from neighbouring provinces pushed up its demand. In most of these latter regions it attribute the decline to falling demand for cement.

Graph 2: Cement production growth by province in first half of 2019. Source: China Cement Association. 

Graph 2: Cement production growth by province in first half of 2019. Source: China Cement Association.

Other points of note from the CCA include the surge in imports to China. Imports of cement and clinker rose by 149% year-on-year to 8.97Mt in the five months from January to May 2019. Vietnam supplied 68% of this followed by 11% from Thailand. On the production side, 10 new production lines with a total capacity of 15.5Mt/yr were commissioned in the period. These were fairly scattered across nine provinces, in Shanxi, Anhui, Hubei, Fujian, Guangxi, Hunan, Guizhou, Gansu and Yunnan respectively.

Sales and profits were supported by growing demand and prices on the corporate side. CNBM’s operating income for its cement businesses grew by 16% to US$8.14bn from US$7.04bn. Its adjusted profit increased by 40% to US$2.76bn from US$1.98bn. Anhui Conch’s sales rose by 17.9% to US$2.15bn from US$2.11bn. It blamed poorer profits in the south of the country on adverse weather leading to weakened demand.

The weaker sales in the south could be seen in China Resources Cement’s (CRC) results with its turnover down by 6% to US$2.22bn from US$2.36bn. Likewise, its earnings before interest, taxation, depreciation and amortisation (EBITDA) dropped by 8.5% to US$820m from US$896m. The majority of its cement plants are based in Guangxi, Guangdong and Fujian. Jidong Cement was also reported as having received US$30m in subsidies from the government during the first half of 2019 in relation to its ‘daily activities.’

As is usual for these kinds of roundups the dynamic in China is between government industrial policies, like peak shifting and pollution mitigation, and local demand and price trends. One of the latest spins on peak shifting, for example, is a rating system that is being considered to decide which companies should be subject to production limits and for how long. General cement sales are slowly falling each year but the rise of imports into the word’s biggest cement producing nation (!) mark an interesting trend. Also, it may not be connected, but lots of those provinces with falling demand so far in 2019 are those on the south coast facing the heavy clinker exporting nations of South-East Asia. Given the decisiveness with which the Chinese government dispensed with imports of waste materials under its National Sword initiative since 2017, those countries importing cement to China should beware. It could change very quickly. The Chinese cement market is never dull.

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Cement production in the Dominican Republic to grow by 8% to 4.8Mt in 2019

21 August 2019

Dominican Republic: Adriano Brunetti, the president of the Dominican Association of Portland Cement Producers (ADOCEM), says that local production is forecast to grow by 8% year-on-year to 4.8Mt in 2019. His prediction was based on 12.5% growth in the construction sector in the first four months of the year, according to the Acento newspaper. He added that local cement producers have a production capacity of around 8Mt/yr. The country exports around 1Mt/yr to other countries in the Caribbean.

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Pakistan cement exports fall in second quarter of 2019

05 August 2019

Pakistan: Data from the Pakistan Bureau of Statistics shows that cement exports fell by 2.5% year-on-year to 1.16Mt in the second quarter of 2019 from 1.22Mt in the same period in 2018. After a strong first quarter exports remained high in April 2019 before starting to decline in May and June. Overall, exports rose by 22.8% year-on-year to 2.7Mt in the first half of 2019.

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