Displaying items by tag: demand

Finland: Wärtsilä’s sales fell by 6% year-on-year to Euro3.18bn in the first nine months of 2021 from Euro3.39bn in the corresponding period of 2020. It increased its order intake by 11% to Euro3.58bn from Euro3.24bn. The company’s cash flow from operating activities fell by 12% to Euro360m from Euro407m. It expects that demand for its offering will increase ‘considerably’ year-on-year in the fourth quarter of 2021.

The supplier announced that it will aim to achieve carbon neutral operations and to provide a product portfolio which will be ready for zero carbon fuels by 2030. It published a report entitled Front Loading Net Zero on how production economies can make savings while managing the renewable energy transition. The report concludes that full decarbonisation before 2050 will be financially viable if properly supported by governments and energy companies.

President and CEO Håkan Agnevall said “These new targets demonstrate our commitment to a sustainable future. Our aim is to support our customers on their decarbonisation. Our products, solutions, and services will meet the stringent environmental requirements, and the fuel flexibility and fuel efficiency of the engines powering these sectors are key to enabling the transformation.” Agnevall added “Naturally, we also need to do our part as an organisation and minimise our own environmental footprint.”

India: Rating agency ICRA has forecast that Indian cement production will rise by 12% year-on-year to 332Mt in 2022. It said that pent-up pre-Covid-19 lockdown demand, rural housing demand and a pickup in infrastructure activity would drive the rise. ICRA predicted that demand would rise by a further 8% year-on-year to 358Mt.

In the first quarter of the 2022 financial year, domestic rose by 44% year-on-year and by 2% compared to the first quarter of the 2020 financial year to 142Mt. ICRA estimated that the top 12 Indian cement producers will record their highest ever average operating profit per tonne of cementitious material in the 2022 financial year. It said that this is likely to occur due to an increase in net sales realisation and cost optimisation measures.

US: Cemex USA has upgraded two Florida cement terminals, the Pensacola and Palm Beach terminals, at a cost of US$8m. The upgraded terminals will serve to increase Cemex USA’s cement supply to the region through marine shipments from its global operations. The Palm Beach terminal is also involved in the distribution of assorted cementitious materials including granulated blast furnace slag (GBFS) and fly ash for cement production.

USA executive vice president Matthew Wild said “Florida is growing rapidly, and Cemex’s strong network makes our company well-positioned to implement supply chain and operational enhancements to meet the high demand for building materials in Florida and beyond.” He added “On the cement side, increased demand has outpaced supply at times, and we expect our supply chain enhancements to help alleviate that issue.”

Azerbaijan: Cement companies increased the total volume of cement produced in the first eight months of 2021 by 1.5% year-on-year to 2.2Mt from 2.17Mt in the corresponding period of 2020. Meanwhile, ready-mix concrete production increased sharply, by 39% to 1.7Mt from 1.3Mt.

On-going large-scale state construction projects the new territories East of Zangazur and Karabakh are anticipated to increase full-year cement production in 2021 and into subsequent years.

Spain: Consumption of cement in the first eight months of 2021 was 9.58Mt nationally, up by 13% year-on-year from 8.48Mt in the first eight months of 2020. The Spanish Cement Industry Association (Oficemen) says that consumption remains 2% below pre-Covid-19 outbreak levels in the corresponding period of 2019. The El Economista newspaper has reported that the association has forecast full-year cement consumption of 14.6Mt in 2020, slightly below the full-year 2019 figure of 14.7Mt.

President José Cascajero said "These levels put us on the path to have a growth in future years that is hopeful. The recovery of infrastructure, which has returned to being the primary source of demand, and residential building, has allowed both consumption and expectations to be substantially improved since April 2021.”

In 2022, he forecast year-on-year demand growth of 3 - 5%, due in part to the positive impacts of the EU post-Covid-19 outbreak recovery fund. Cascajero warned of the increasing burden of rising electricity prices and CO2 emissions fees and called for ‘structural reforms’ to mitigate their drag on growth.

India: SCG International Corporation has agreed to provide marketing services for BigBloc Construction’s autoclaved aerated concrete (AAC) panels and other building products. United News of India has reported that BigBloc Construction expects to benefit from the partnership through the creation of a business development foundation for its AAC panels. SCG International Corporation is a subsidiary of Thailand-based cement producer Siam Cement Group (SCG).

Chair Narayan Saboo said "We are absolutely elated to announce our inaugural joint collaboration with SCG with the purpose of entering newer markets and expanding ourselves with our diversified product lines. We are the leading manufacturer of AAC blocks in India, and AAC panels are a new age building material which will further enhance speed and quality of construction.” He added “We are fully capable to cater to more demand and hence we look forward to scaling up by further promoting our product basket. SCG is without a doubt the best partner for the purpose since it is one of the largest cement and building material companies in Thailand and Southeast Asia. We look forward to the success of this wonderful opportunity which is mutually beneficial for both of our businesses."

Vietnam: Member of the Vietnam Cement Association produced 70.7Mt of cement and clinker in the first eight months of 2021, up by 4% year-on-year from 27.2Mt in the corresponding period of 2020. Its exports rose by 12% to 27.2Mt. Viet Nam News has reported that the main importers of Vietnamese cement and clinker were China, the Philippines and Bangladesh. During the period, domestic demand fell by 5% to 43.5Mt.

Australia: Adbri’s first-half sales in 2021 were US$545m, up by 7% year-on-year from US$508m in the first half of 2020. The group’s cement and clinker volumes increased by 11%. It said that this was due to a rise in demand in the eastern states of Australia and the recommencement of regular supply to a customer in South Australia. The group increased its earnings before interest and tax (EBIT) to US$64.0m, up by 81% from US$35.3m. Its net profit increased by 95% to US$41.1m from US$21.1m.

CEO Nick Miller said “Adbri delivered a robust first half financial performance for 2021 recording solid growth in revenue and profits with improving margins as demand for construction materials rebounded, supported by increased residential housing activity and infrastructure spending.” He added that full-year 2021 earnings would increase less sharply year-on-year than first-half earnings have, due partly to the anticipated impacts of the opening of a rival cement terminal in New South Wales in the second half of the year.

India: JK Cement has targeted a 10% year-on-year sales growth in its 2022 financial year, which ends on 31 March 2022. The Economic Times has reported that the company foresees sales growth due to the on-going government infrastructure investment push, minimal monsoon disruptions and pent-up cement demand following Covid-19-led disruptions. Cement chief operating officer Rajnish Kapur said that growth momentum from the end of the 2021 financial year will likely continue throughout the coming nine months, despite a Covid-19 led sales drop in the first quarter of the 2021 financial year.

The cement producer also expects that its new cement plant project at Panna in Madhya Pradesh is likely to be completed in the 2023 financial year due to Covid-19 related delays. The plant will bring its total cement production capacity to around 20Mt/yr from nearly 15Mt/yr at present once it is finished. The company is also considering acquisitions to further increase its capacity to 25Mt/yr by the mid-2020s.

India: Cement demand will drop by an estimated 20% year-on-year in the three months up to 30 June 2021, the first quarter of the 2022 financial year in India. Credit rating agency Fitch Ratings has attributed the projected decrease to a significant drop in rural housing’s bagged cement uptake due to state governments’ coronavirus lockdowns, which prevent retailers from opening. The Hindu newspaper has reported that this type of construction previously generated one third of demand. Segments such as urban housing, commercial construction and infrastructure will be less affected, according to the forecast.

Prime Minister Narendra Modi has not yet implemented a national lockdown in response to the country’s second wave of coronavirus. New cases numbered 264,000 on 17 May 2021, down by 20% week-on-week from 330,000 on 10 May 2021.