Displaying items by tag: demand

US: Concrete companies have reported an on-going shortage of cement as a contributor to increased costs in the construction industry. Local press has reported that the shortage is the result of high demand, most notably from commercial projects. A lack of cement truck drivers has reportedly exacerbated the supply situation.

North Carolina-based ready-mix concrete producer Metrocon president Dan Crosby said that his company’s facilities are currently operating at 60% capacity due to the shortage.

UK: UK construction recorded its highest ever quarterly total value at Euro27.5bn in the first quarter of 2022. Participants in the industry agreed Euro10.4bn-worth of construction contracts in March 2022. Analyst Barbour ABI has reported that residential construction contracts rose by 50% month-on-month to Euro4.22bn, their highest level since the Covid-19 outbreak arrived in the UK in March 2020. Chief economist Tom Hall noted a year-on-year and month-on-month increase in office construction activity as indicative of a reversal of the home-working trend of the past two years.

Hall said “While the current state of the industry is positive with lots of activity and record-breaking levels of contracts awards and planning approvals in some areas, the horizon is more concerning. Overall, the level of planning applications received in March was low and raises questions about the delivery of the government’s commitment to raise the standard of healthcare across the country and its flagship levelling up agenda.”

Russia: SibCem subsidiary Angarskcement has restarted kiln four at its plant in Angarsk after a decade of inactivity. The kiln was last used in 2010. The decision to restart the kiln was made in 2021 due to growing demand for building materials in the Irkutsk region and an increase in cement sales. Kiln four was first lit in 1960 and was later upgraded in the early 1980s. It has a clinker production capacity of 720t/day. All four kilns are now running at the cement plant.

Russia: The government is ‘working to establish import flows’ of building materials from Uzbekistan. Russian media sources have reported that the construction industry is also hoping to expand import partnerships with China, India, Iran and Turkey. Russian cement production reportedly continues to adequately serve the national demand for cement.

China: Anhui Conch recorded a 4.7% year-on-year decline in its consolidated sales to US$26.4bn in 2021 from US$27.7bn in 2020. Its net profit was US$5.23bn, down by 5.3% from US$5.52bn. Anhui Conch attributed the decline to decreased cement demand. Its fuel and power costs increased by 30% in 2021. The producer forecast continued low market demand and high raw material and energy costs for the duration of 2022.

During the reporting period the group’s cement sales volumes fell by 9.8% to 409Mt. It increased its clinker, cement and concrete production capacities by 7.2Mt to 269Mt/yr, by 14.3Mt to 384Mt/yr and 10.5Mm³ to 14.7Mm³. It also installed photovoltaic power plants with a capacity of 200MW. By region, it said that market demand remained stable in East, Central and South China, although sales volumes declined slightly. However, it noted insufficient market demand in West China. The group’s export sales volumes fell by 43% but volumes and sales by its international subsidiaries grew by 7.5% and 5.3% respectively.

World: Market Research Future has forecast a 15% composite annual growth rate (CAGR) in global green cement demand between 2018 and 2023, where green cement is defined as fly ash cement, slag cement, geopolymer cement and other cements produced using alternative raw materials. Market Research Future predicts that fly ash cement’s global growth will be the sharpest due to its abundant availability. Its report concluded that cement sector strategies in response to the growth would include mergers, joint ventures and acquisitions.

Pakistan: Maple Leaf Cement’s first-half standalone sales were US$121m in the 2022 financial year, down by 33% year-on-year from a first-half 2021 financial year figure of US$91.5m. Export sales fell by 46% to US$2.63m, 2.5% of total sales. Its main export markets were Afghanistan, the Seychelles, Oman and Tanzania. The company reported a 70% increase in its consolidated net profit to US$15.2m from US$8.97m in the first half of the 2021 financial year. The producer said that it expects the domestic cement market to remain ‘stagnant’ for numerous reasons, including high inflation, increased interest rates and decelerating implementation of projects under the Public Sector Development Programme.

New Zealand: Holcim Australia and New Zealand plans to establish a new low carbon cement import and distribution facility next to its existing cement terminal at Ports of Auckland. The company says that the facility will have the capacity to replace 100,000t/yr of ordinary Portland cement (OPC) used in New Zealand. In 2021, the country consumed 1.6Mt of cement, generating 1.3Mt of CO₂ emissions.

CEO George Agriogiannis said “I’m pleased Holcim Australia and New Zealand is progressing to the building phase of a facility that will import and distribute low carbon cement replacement products. Once operational, the site will enable the reduction of carbon emissions via a cement replacement which can be used for applications such as infrastructure, commercial and residential projects.” He concluded “This initiative is a positive step toward the New Zealand government’s Zero Carbon ambitions and Holcim’s Net Zero climate pledge.”

UK: The Mineral Products Association (MPA) has urged the the UK government to reduce energy costs, maintain mineral products companies’ access to low-tax red diesel and to deliver on planned infrastructure investments. The association says that high costs already threaten its member’s competitiveness against EU-based rivals. The Ukraine crisis has caused energy costs to rise, while mineral products companies expect their rebate for red diesel to end on 1 April 2022. The MPA has asked the government to delay the end of the red diesel rebate. It also called for transparency on the delivery of the government’s infrastructure plans.

CEO Nigel Jackson said “The high ambitions the government has set out for the UK’s infrastructure and housing rely on our members’ ability to supply aggregates, asphalt, cement, concrete and other essential materials You can’t build with thin air – construction needs materials and producing materials requires long-term planning and investment, so our industry needs clarity on what’s in the pipeline for the next 10 or 20 years, not the next 10 months. There is a widely recognised maxim ‘if you can’t grow it, you have to dig it.’ Clearly, this is not as recognised by government given the exemptions and subsidies some other industries enjoy. We also provide high-skill, well-paid jobs in regions most in need of economic growth.” Jackson concluded “Our overriding aim is for our sector to deliver for the UK by having economic conditions that reduce uncertainty and boost confidence to encourage investment for growth.”

Mexico: Cemex says that it plans to restart Line 2 at its CPN cement plant in Sonora State. The line has a capacity of 0.8Mt/yr. Cemex will invest US$29m in restarting it, bringing its total recent investments in the CPN plant to US$44m. It previously invested US$15m in a restart of the plant’s 1Mt/yr Line 1 in 2021. When operational in mid-late 2022, Line 2 will join the existing line in supplying cement to Arizona, California and Nevada in the US.

Cemex USA president Jaime Muguiro said “Many cement customers in the western US have been impacted by tight supply constraints for several months, and at Cemex, we are proactively looking for opportunities to further alleviate those conditions and enrich customer experiences by enhancing how we operate while utilising our global reach.” He continued “Customers require more cement to keep pace with the region’s growth, and we want to ensure they have stable and steady access to the high-quality materials that are essential to meet their needs.”