Displaying items by tag: demand
Vietnam: Producers exported approximately 2.82Mt of cement in January and February 2020, down by 49% year-on-year from 5.75Mt in the corresponding period of 2019. Vietnam News has reported that this is a result of the coronavirus outbreak. In February 2020 Vietnam’s Ministry of Construction said that Vietnamese cement exporters would face fierce competition as China and Thailand increase exports over the coming year.
Vietnam Cement Association president Nguyễn Quang Cung previously predicted that Vietnamese cement exports would hold steady at 34.0Mt in 2020 before falling by 26% to 25.0Mt in 2021 as a forecasted rise in domestic demand reduces the reliance on low-priced exports. China remains the primary importer of Vietnamese cement, which it buys at US$36.3/t. Domestic demand fell by 37% year-on-year to 2.88Mt in January 2020 from 5.43Mt in January 2019, according to Arab News.
Production rose by 0.1% year-on-year to 13.0Mt in January and February 2020 from 12.9Mt one year previously.
CRH shares 2019 results
28 February 2020Ireland: CRH recorded sales of Euro28.3bn in 2019, up by 6% year-on-year from Euro26.7bn in 2018. Earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 25% year-on-year to Euro4.20bn from Euro3.36bn. The company said that the results were supported by a positive demand backdrop in the Americas and in key regions in Europe. It also set out a new CO2 emissions roadmap with target of 520kg/t of cement by 2030, a 33% reduction compared to 1990 levels.
Adelaide Brighton’s profit flops
27 February 2020Australia: Adelaide Brighton’s profit in 2019 was US$31.1m, down by 74% from US$122m in 2018. Sales were down by 7% to US$997m from US$1.07bn. Adelaide Brighton chairman Raymond Barro explained that ‘increased competition and softer demand for construction materials’ locally impacted revenue and earnings. He said that ‘cost pressures across sea freight, transport and raw materials’ caused the dive in profit.
Russian consumption rises by 9.6% year-on-year in January 2020
11 February 2020Russia: Russian producers sold 2.4Mt of cement in January 2020, up by 9.6% from 2.2Mt in January 2019. This is in line with Unioncement’s optimistic forecast of 6% year-on-year demand growth. The coming construction season promises sustained growth due to the planned renovation of housing stock, the implementation of integrated development projects and an increased share of roads built using cement concrete, in line with the country’s 2020 Housing and Urban Environment programme and President Putin’s social initiatives.
Spanish 2019 cement consumption grows by 5.9% year-on-year
07 February 2020Spain: Spain’s cement consumption in 2019 was 14Mt, up by 5.9% from 13Mt in 2018. Exports fell by 23% to 6.2Mt from 5.0Mt in 2018.
President of the national cement association Oficemen Víctor García Brosa attributed the demand growth to homebuilding but said that the housing market had a long way to go towards providing a reliable base for domestic cement production. “The 110,000 new homes that have started in 2019 represent half of the homes that were built annually before the global financial crisis,” he said. “For Spain, the real estate market should average between 180,000 and 200,000 new homes per year.” He estimated that cement consumption growth would slow to 2.0% year-on-year in 2020.
Cement demand down in China
06 February 2020China: The China Commodities Watch 2020 Outlook and Health Check has forecast a ‘one-off impact on operating cash flow’ for Chinese construction materials producers, including cement producers, due to reduced demand during the on-going coronavirus outbreak. “After the outbreak, the government may increase investment in infrastructure,” in order to boost the economy, according to the report.
PCA forecasts 1.7% growth in US cement demand in 2020
05 February 2020US: On 4 February 2020, PCA Senior Vice President and Chief Economist Ed Sullivan predicted that US cement demand would rise by 1.7% in 2020 and may rise by as much as 2.7% if residential construction exceeds expectations. Sullivan stated that demand would maintain moderate growth through at least to 2022. “As long as the economy continues to grow and create jobs, the economy will remain on solid ground and continue to support cyclical portions of the cement market,” he said.
Siberian Cement produces 3.2Mt in 2019
24 January 2020Russia: Siberian Cement’s production increased by 3.0% year-on-year to 3.2Mt in 2019 from 3.1Mt in 2018. The company estimated that demand over the period in Siberia, Buryatia and the Trans-Baikal region grew by 4.4% year-on-year to 5.3Mt/yr from below 5.1Mt/yr in 2018. Siberian Cement owner Sibtsem Holding Company’s first vice president Gennady Rasskazov suggested mining and metallurgical projects, the bridging of the River Ob and infrastructure development for the World Youth Hockey Championship 2023 as factors contributing to the rise in demand.
Algeria’s 11-month cement exports climb by 240% year-on-year
13 January 2020Algeria: Algeria sold cement and clinker worth US$59.3m in the first 11 months of 2019 – up by from US$17.5m in the corresponding period ending 30 November 2018. The country’s 40Mt/yr-capacity cement industry serves a domestic demand of 22Mt/yr. Algeria Press Service has reported that Algeria’s key trade partners for exported cement were sub-Saharan African nations, according to former Minister for Trade Saïd Djellab.
Huaxin Cement projects 18% - 28% year-on-year profit growth
10 January 2020China: Preliminary calculations from Huaxin Cement’s financial division have projected a net profit attributable to shareholders for 2019 of between US$0.88bn and US$0.95bn – an increase of 18% - 28% year-on-year from US$0.74bn. The company attributed the forecasted rise to an increase in the production and sales scale of its leading products.
China Cement Association Information Centre deputy director and Digital Cement Network CEO Chen Bailin estimated that demand will remain steady across China in 2020, according to Yicai News.