Displaying items by tag: demand

Pakistan: Despite low domestic cement demand, exports rose in October 2024, with total despatches reaching 4.36Mt, a 9% increase compared to 4Mt in October 2023. The All Pakistan Cement Manufacturers Association reported a 51% increase in export despatches, from 714,325t in October 2023 to 1.1Mt in October 2024. This increase offset the slow local market demand, which saw a minor decline of 0.5% in domestic despatches to 3.28Mt from 3.3Mt.

Over the first four months of the 2024 financial year (July – October 2024), total cement despatches (domestic and exports) fell by 8% to 14.6Mt from 16Mt in the previous year's corresponding period. Domestic despatches decreased by 15% to 11.4Mt, whereas exports grew by 31%, reaching 3.2Mt from 2.5Mt.

Zimbabwe: The government is looking at consolidating limestone deposits as part of the new Zimbabwe Industrial Reconstruction and Growth Plan. This plan aims to increase domestic clinker production so that ‘costly’ clinker imports are reduced, according to The Zimbabwean newspaper. The government hopes that the consolidation plan will stabilise the raw material supply chain, providing cement manufacturers with a steady source of limestone to meet demand without production interruptions. Zimbabwe’s cement industry reportedly has an installed capacity of 2.6Mt/yr, but only produces 1.65Mt/yr, with imports exceeding US$59m in 2023. The national demand is estimated at 1.8Mt/yr.

In order to support domestic production, the plan recommends increasing the cement import licence fee from US$100 to US$500 per 30t and reducing the electricity tariff from US$0.16/kWh to US$0.10/kWh.

Philippines: The Cement Manufacturers’ Association of the Philippines (CEMAP) has confirmed that local cement producers are prepared to meet the rising housing demand, as domestic production capacity has increased. According to CEMAP president Reinier Dizon, capacity has grown from 27Mt in 2014 to 50Mt in 2024, supported by expansion projects in the country.

Chile: The combined cement sales of Cbb, Melón and Polpaico continued a three-year decline with a 4% year-on-year drop in the first half of 2024, to 1.83Mt. In terms of market shares, Polpaico retained 40%, Melón 34% and Cbb 26%. Noticias Financieras News has reported that low domestic demand caused the fall in sales. Despite the general downturn, Cbb succeeded in more than doubling its profit to US$18.5m, by increasing its shipments of cement, which offset a decline in concrete sales.

Polpaico said "During the second quarter of 2024, the cement and concrete industry in Chile continued to face significant challenges, reflected in a slowdown in the construction sector." It added that there was ‘constant price competition’ exacerbated by an ‘abnormal volume of rainfall’ in June 2024.

Melón said "There has been a slowdown in projects under development compared to previous periods. On the other hand, production and distribution costs have continued to be under pressure, which in this period are mainly related to the increase in the exchange rate."

India: Cement demand in India is projected to increase by 7 - 8% to approximately 475Mt in the 2025 financial year, down from a compound annual growth rate of about 11% between financial year (FY) 2022 and FY 2024, according to a report by CRISIL Ratings. The company analysed 18 cement producers, which account for over 85% of domestic sales volume. The forecast follows a 3% growth in demand during the first half of FY 2024, affected by an extended heatwave and a labour shortage during the general elections, the Financial Express has reported.

Director of research at CRISIL Market Intelligence and Analytics, Sehul Bhatt, said "Cement demand is expected to rebound in the second half of the 2024 financial year, as construction activity gathers pace across infrastructure and housing segments post-monsoon. Healthy monsoon, improved labour availability after the festive season, and an increase in government spending on infrastructure and housing should drive demand up 9 – 11% in the second half of the year, taking the annual growth tally to 7 – 8%."

Bolivia: Bolivia recorded a 2.7% year-on-year increase in cement production and sales in August 2024. According to the National Statistics Institute, production reached 2.6Mt from January - August 2024, up from 2.53Mt in the same period in 2023. Santa Cruz produced 699,062t of cement, followed by La Paz with 679,317t, Chuquisaca with 510,841t, Cochabamba with 384,329t, Oruro with 214,660t and Tarija with 150,068t.

Marcelo Morales, general manager of Itacamba Cemento, noted a year-on-year increase of 3% in domestic demand, with 2.6Mt of cement consumed as of August 2024, saying that the growth was positive ‘considering the current economic situation’.

General manager of the Bolivian Institute of Cement and Concrete, Marcelo Alfaro, also mentioned that Santa Cruz, La Paz and Cochabamba collectively account for about 70% of cement sales in Bolivia, according to La Razón newspaper. The cement industry's installed capacity reportedly stands at 10Mt/yr and the country is facing challenges exporting cement, as neighbouring countries already produce their own.

Kazakhstan: Steppe Cement has published its nine-month trading update for 2024, showing a drop in sales of 2% year-on-year in nine months up to 30 September 2024, to US$63m. Sales volumes remained level year-on-year at 1.34Mt. Regulatory News Service has reported that Steppe Cement attributed medium-term increases in production and the stabilisation of costs to capacity expansions and other capital expenditure investments since 2022. Nine-month domestic cement consumption was 9.1Mt, in line with nine-month 2023 levels. Imports accounted for 319,000t (4%) of total consumption. Meanwhile, exports totalled 720,000t.

Regarding results for the third quarter of 2024, CEO Javier del Ser Perez said "We recovered both volumes and pricing in the third quarter of 2024, following a price adjustment in the second quarter. While competition remains strong, our plant has continued to enhance its capacity and productivity, enabling us to offset the impact of past inflation. We remain focused on driving higher volumes and cash generation.”

Vietnam: Deputy director of Tan Quang Cement, Tran Van Hung, has proposed reducing cement plant capacity to address the significant supply-demand imbalance. With a current supply of 120Mt/yr and a demand of only 56Mt/yr, the oversupply has led to price pressures, according to the Vietnam News Brief Service. This strategy aims to stabilise prices amid rising input costs and declining sales, further challenged by China's competitive stance and increased export taxes.

Van Hung has suggested regulating plant operations through energy limits and penalties to control supply and stabilise prices.

Saudi Arabia: The crowded cement sector in Saudi Arabia is experiencing tensions due to its varying market shares, according to Majed Al Osailan, vice chair of the National Cement Committee. He noted that despite initial slow demand, renewed spending on construction has led to a shift, with most companies now able to meet market needs. The cement sector saw its first merger between Qassim Cement and Hail Cement, according to Argaam news, with another planned between City Cement and Umm Al-Qura Cement. NCC chair Badr Johar said that demand for cement is expected to strengthen substantially from late September 2024 to February 2025.

Jamaica: Caribbean Cement Company has confirmed a shortage of cement due to increased demand following the impact of Hurricane Beryl. Despite concerns about its effect on the construction sector, former president of the Incorporated Masterbuilders Association of Jamaica Lenworth Kelly, says the lack of supply is typical for the local market and not a cause for concern, expecting a return to normality within a week, according to Radio Jamaica News. Caribbean Cement Company has stated that it has a supply of cement in storage for the period during its scheduled maintenance.  

Kelly said "It's just a matter of when supply gets back to you. And I know the supply is back up, but it has to get to every little town, every little location. I know the bulk suppliers would be receiving now, but I'm not expecting any significant contribution to a decline, as it were. We had a significant spike, and so we would expect some trending down."