Displaying items by tag: demand

Colombia: Cemex Latam Holdings (CLH)’s net sales in the first quarter of 2020 were US$214m, down by 11% year-on-year compared to sales of US$240m in the same period of 2019. Operating earnings before interest, tax, depreciation and amortisation (EBITDA) throughout the quarter declined by 12% year-on-year to US$46.0m from US$52.3m. Cement volumes over the period were 11% below their first-quarter 2019 level, however prices were 3% higher. Total debt decreased by 8% year-over-year, reaching US$766m as of March 2020.

Cemex Latam Holdings CEO Jesus Gonzalez 
said, “We came into 2020 with favourable demand momentum in Colombia, Nicaragua, Guatemala and El Salvador, and a stabilising trend in Costa Rica. The coronavirus outbreak began to impact on this in March 2020. With respect to capex, US$20.0m has been postponed until 2021. Also, members of CLH’s Board and senior leadership have agreed to voluntarily waive a percentage of their second quarter salaries. Other employees voluntarily deferred a percentage of their salaries for the period. I would like to thank my colleagues for their support in these challenging times.”

Egypt: Suez Cement, a HeidelbergCement subsidiary has implemented of a 20% reduction in pay for members of the management committee and a 30% reduction in pay for the managing director in the second quarter of 2020. The cuts are intended as a ‘cost-saving measure’ in line with the company’s aim to reduce expenses. Suez Cement said, “During the last few years the Egyptian cement industry has been going through very challenging times caused by oversupply and a sustained decrease in the demand, and Suez Cement Group has posted negative results. The COVID-19 crisis has complicated market conditions, affecting demand and increasing our costs. Moreover, it has affected our main shareholder, HeidelbergCement. In many countries it has suffered complete shutdowns and it is currently enduring complications in most of the countries that is present.”

Suez Cement continues to employ all staff.

Peru: Total cement volumes in March 2020 were 0.42Mt, down by 51% year-on-year from 0.86Mt in March 2019 and down by 51% month-on-month from 0.85Mt in February 2020. Clinker volumes fell by 51% to 0.35Mt from 0.71Mt in March 2019 – down by 55% month-on-month from 0.78Mt in 2020.

Peru’s March cement exports were 6200t, down by 46% year-on-year from 11,400Mt in March 2019 and 55% month-on-month from 13,700Mt in February 2020. Imports in March 2020 were 102,000t, down by 3.6% year-on-year from 106,000t and up by 2150% month-on-month from 5000Mt.

Domestic demand fell by 47% year-on-year and 48% month-on-month to 0.49Mt, from 0.92Mt and 0.94Mt respectively.

India: Both Germany-based HeidelbergCement and Aditya Birla subsidiary UltraTech have responded to the government’s partial lifting of the coronavirus lockdown for rurally-located continuous industries by resuming ‘partial operations in some production facilities.’ Orient Cement subsidiary CK Birla said, “We are in the process of partially resuming our operations at our plants in Karnataka and Maharashtra.” Producers require the permission of the relevant state government to restart plants. In Telangana, where the government has not lifted the lockdown, CK Birla’s facilities remain shut.

The Economic Times newspaper has reported that ‘limited transportation facilities, higher than usual inventory and stricter rules regarding labour safety’ have added a note of caution to resumed operations. Shree Cement managing director Hari Mohan Bangur said, given the continuation of restrictions on construction in cities, “We expect just 10% of normal consumption, with hopes of a gradual increase.”

Slovenia: Salonit Anhovo suspended production from 20 April 2020 to 4 May 2020. SeeNews has reported the reason for the suspension as a lack of demand from its usual Italian and Slovenian markets amid the ongoing coronavirus crisis. Salonit Anhovo management board member Dejan Zwitter said, "We expect domestic sales to stabilise as the government is providing incentives for construction activities."

The company will continue to serve its customers with deliveries of it products.

Indonesia: Japan-based Taiheiyo Cement has announced its acquisition of a 15% stake in state-owned Semen Indonesia subsidiary Solusi Bangun Indonesia for between US$186m and US$232m, subject to the terms of a partnership agreement with Semen Indonesia.

Under the ‘2020 Mid-Term Management Plan,’ Taiheiyo Cement says that it aims to ‘become a corporate group with a strong presence in the Pacific Rim.’ Its partnership with Semen Indonesia is part of Taiheiyo Cement’s response to a forecasted long-term decline in domestic cement demand in Japan.

In the first quarter of 2020 Semen Indonesia sold 9.36Mt of cement, up by 7.0% year-on-year from 8.74Mt in the corresponding period of 2019. InsiderStories News has reported that domestic demand in the period fell by 4.9% to 14.9Mt from 15.7Mt, while exports fell by 2.5% to 1.39Mt from 1.42Mt but rose by 6.2% on a month-by-month basis in March 2020 to 3.09Mt from 2.91Mt in February 2020. April 2020’s cement sales are expected to be lower due to the impacts of the coronavirus outbreak.

Spain: Cement demand in the first quarter of 2020 was 3.14Mt, down by 13% year-on-year from 3.60Mt in the corresponding period of 2019. In March 2020 cement consumption in Spain was 924,000t, down by 28% year-on-year from 1.28Mt due to the effects of the coronavirus outbreak. Agencia EFE has reported that this is the lowest level of demand in any month since the immediate aftermath of the 2008 financial crash. Construction activity has been restricted by a government-imposed coronavirus lockdown since 14 March 2020.

On 23 April 2020 Spain’s confirmed coronavirus case count was 213,024, with 22,157 deaths.

Thailand: Siam City Cement has closed the production lines at its Plant 1 integrated cement plant in Saraburi province due to a lack of demand resulting from the coronavirus outbreak. In a statement the company said that, “The aftermath of the COVID-19 pandemic is seriously affecting the overall economic system and has already caused the global business and industrial sectors. The impact on us has been the drastic decline in demand both from domestic and regional markets.” It added that the closure was not expected to have an adverse impact on its operations. It is offering a ‘Mutual Separation Plan’ to affected workers in accordance with and beyond local labour regulations.

Normal production will continue at its Plant 2 and Plant 3 sites. In its 2019 annual report the cement producer said that it operated three cement plants in Kang Koi District, Saraburi Province with a total of six kilns and a combined clinker capacity of 13Mt/yr. However, only five kilns were in operation at this time with a combined production of 12Mt/yr.

This news story has been updated following clarification from Insee Cement.

US: Lehigh Cement has announced plans to suspend operations at its 0.5Mt/yr Glens Falls, New York, plant and associated Moreau quarry by 1 May 2020 in response to the coronavirus outbreak. The move will see its local staff of 90 reduced to 36 for the duration of the shutdown. Times Union newspaper has reported that Lehigh Cement will cover the 54 dismissed employees’ health insurance payments and ‘provide assistance in applying for unemployment and other layoff-related benefits.’ Lehigh Cement Glens Falls plant manager David Dreyer said, “We look forward to the day when our nation's health is no longer at such risk and our customers' demand for cement products returns, so we can welcome our employees back and resume full operation.”

Greece: Titan Cement has published its integrated annual report for 2019, a year in which its net profit fell by 5.5% year-on-year to Euro50.9m from Euro53.8m in 2018 and sales rose by 8.0% to Euro1.61bn from Euro1.49bn. The company noted its ‘sustained performance and stronger cash flow generation’ throughout the year, with growing demand in the US and Southeastern Europe and the beginning of growth in Greece, in spite of a 7.0% year-on-year fall in cement volumes to 17.0Mt from 18.2Mt in 2018. Challenging conditions in Egypt and Turkey caused the group’s performance to deteriorate.

Titan Cement said that it is ‘on track to meet the Group’s 2020 sustainability targets and has already met ‘all targets related to emissions and water consumption.’
It acknowledged inevitable ‘short-term impacts’ of coronavirus, including reduced sales volumes ‘particularly and more severely in the second quarter of 2020,’ and has strengthened its liquidity position to Euro400m.