Displaying items by tag: demand

Trinidad & Tobago: Trinidad Cements' sales were US$309.6m in 2022, up by 9% year-on-year. Group earnings before interest, taxes, depreciation and amortisation (EBITDA) rose by 19% to US$77.0m. The Trinidad and Tobago Guardian newspaper has reported that the producer recorded a US$16.1m loss during the fourth quarter of the year. The producer attributed this to a weather-related drop in cement demand across its markets, as well as restructuring costs for its Barbados-based subsidiary Arawak Cement.

Trinidad Cement chair David Inglefield and managing director Francisco Aguilera Mendoza said "We will ensure that our operations remain resilient by continuing effective cost management initiatives to maximise value in this challenging economic environment. Additionally, we expect improved productivity and efficiency of our equipment on completion of major planned maintenance in 2023."

Japan: Taiheiyo Cement's consolidated sales rose by 14% year-on-year to US$6.02bn for its 2023 financial year, which ended on 31 March 2023. Its cement volumes fell by 1.5% to 37.3Mt. It said that current high costs of labour and building materials generally reduced cement demand in its local market. It reported a net loss of US$247m, up by 15% from US$215m. Nikkei News has reported that the company has forecast a US$297m profit in the 2024 financial year.

New Zealand: Cement producer and construction firm Fletcher Building has reported a 20% year-on-year drop in domestic housing demand during the first quarter of 2023. The Australian newspaper has reported that the company attributed the decline to ‘soaring’ interest rates in the country. It now expects to sell 800 residential units in 2023, 20% below its previous expectation of 1000 units. Fletcher Building said that building materials costs rose by 5 – 10% between 2020 and 2022, due to ‘higher input and commodity costs’ in production.

CEO Ross Taylor said that Fletcher Building faces labour shortages in its civil construction business, but maintained a strong order pipeline. Taylor said “It won’t drive an uptick in volumes but it will underpin the volumes in the next three to four years.”

Pakistan: Local cement producers delivered 30.6Mt of cement to customers in Pakistan during the first nine months of the 2023 financial year, down by 15% year-on-year from 36.1Mt in the corresponding period of the 2022 financial year. The Dawn newspaper has reported that producers exported 3.04Mt of cement, 9% of total sales of 33.6Mt. Exports fell by 35% from 4.64Mt, while total sales fell by 18% from 40.8Mt.

The All Pakistan Cement Manufacturers Association (APCMA) said “Continued political instability, currency devaluation and poor economic conditions are badly affecting all the industrial sectors, including the cement industry.” It continued “Construction activities in both the northern and southern regions of the country have been declining significantly over past months. Employment opportunities for skilled and unskilled labour attached to the construction sector are also in decline.”

India: Adani Group says that it will raise funds for its 2028 capacity expansion plan through internal accruals. The producer plans to double its cement capacity to 140Mt/yr by 2028, and also double its sales to US$8.5bn that year. The Financial Express newspaper has reported that the group says its internal accruals will be 'sufficient' to realise its aims. The group is reportedly 'on track' to commence the first phase of the planned expansion in early-mid-2023. It has also set out a cost reduction roadmap with a view to becoming India's most profitable cement company.

Chair Gautam Adani says that he anticipates a 'multi-fold rise' in all-Indian cement consumption due to forecast high economic growth and the government's infrastructure spending plans.

China: China National Building Material's (CNBM) revenue fell by 16% year-on-year to US$33.4bn in 2022 from US$40.0bn in 2021. Its adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) fell by 31% to US$5.18bn from US$7.50bn. Sales from its cement and concrete business segments fell by 18% to US$16.0bn and 29% to US$5.25bn respectively. Adjusted EBITDA fell by 42% to US$2.89bn and 7% to US$470m. Its sales volumes of cement and clinker decreased by 15% to 316Mt from 373Mt. Sales volumes of concrete decreased by 24% to 84.7Mm³ from 112Mm³.

The group said that, “In 2022, the triple pressure from shrinking demand, supply shock and weakening expectations persisted, and the complexity, severity and uncertainty of the development environment increased.” With regards to the building materials segment it blamed a declining real estate market, a poor economy and general poor demand in both the peak and off seasons. It added, “The downturn in demand has further aggravated the contradiction of overcapacity in the industry, with prices running low, coupled with a sharp rise in the cost of coal and other elements leading to escalating production costs, the production and operation situation was extremely critical.” In response the company is continuing to push for supply-side reform, promote precise staggered peak production, working on stablising the market and seeking out opportunities to supply large-scale infrastructure projects.

China: Anhui Conch Cement plans to invest US$2.81bn in capital expenditure (CAPEX) throughout 2023. The investments will go towards building new capacity, upgrading to new technologies and increasing plants' energy efficiency. The Morning Star newspaper has reported that the producer currently faces high energy costs, against a backdrop of reduced cement demand.

Anhui Conch Cement recorded sales of US$19.2bn in 2022, down by 21% year-on-year from US$24.4n in 2021.

China: West China Cement recorded US$1.23bn in sales in 2022, up by 6% year-on-year from US$1.16bn in 2021. The producer's profit dropped by 23% to US$176m from US$230m.

Looking to the 2023 full year, West China Cement said that it expects demand in Guizhou and Xinjiang Provinces to 'remain subdued.' It noted upcoming infrastructure projects in Shaanxi Province as a source of substantial demand, but overall does not expect significant demand growth there. Meanwhile in Mozambique, the group expects its performance to remain unchanged.

Vietnam: Thang Thang Cement has despatched a shipment of 55,000t of cement produced at its Ha Nam cement plant to a customer in Central America. Vietnam Investment Review News has reported that Lotus Cement and Commodities Trading Corporation shipped the order from Ho Chi Minh City.

Vietnamese cement producers are reportedly seeking new trade partners due to 'lingering headwinds' in the domestic and global markets.

India: Credit rating agency Crisil expects the Indian cement sector's capacity to expand at a compound annual growth rate (CAGR) of 4 - 5% over the four-year period up to the end of the 2027 financial year on 31 March 2027. It would thus begin the 2028 financial year at 715 - 725Mt/yr in installed capacity, compared to 570Mt/yr at the end of the 2023 financial year. The industry's total investment in the expansion is expected to be US$14.5bn. Major multi-state producers are expected to contribute over US$7.25bn (50%) of investments towards the total sum.

Over the same period, Crisil expects all-India cement demand to rise at a CAGR of 6 - 7%.