Displaying items by tag: demand

Spain: 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.

China: 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.

US: 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.

Russia: 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: 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.

China: 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.

India: Market researcher Fortune Business Insights has forecasted market growth of 5.2% in the cement industry to US$463bn in 2026 from US$313bn in 2019. It conjectured that global improvements in road quality and investments in high-grade products will drive growing demand. The industry will meet this demand through advances in cement production and a reduction in the number of companies consolidating operations.

In India, the government’s ‘Housing for All by 2020’ scheme is set to kick-start consumption.

Fortune Business Insights' report is available here.

Pakistan: Producers increased second-half cement volumes in 2019 by 6.5% year-on-year to 24.8Mt from 23.2Mt between 1 July and 31 December 2018. Domestic consumption grew by just 3.5% between the two periods under comparison to 20.4Mt from 19.7Mt, causing exports to rise by 22% year-on-year to 4.38Mt in 2019’s second half from 3.56Mt one year previously. The Nation newspaper projected Pakistan’s total volumes in the financial year ending 30 June 2020 of 47Mt/yr against an installed capacity of 60Mt/yr.

India: Economic Affairs Secretary Atanu Chakraborty has announced an infrastructure-spending plan consisting of US$102tn expenditure before 30 April 2025. Iran Daily has reported that this includes an investment of US$13.6tn in the 12 months to 30 April 2019 - up by 36% from US$10.0tn in the previous 12 months to 30 April 2018. 25% of the investment will go to the energy sector and 19% spent on roads, 16% on urban infrastructure, 13% on railways and 8% on rural infrastructure and innovation. The Business Standard newspaper has suggested that slow growth in domestic demand in late 2020 may cause cement production capacity utilisation to return to a level above 70%.

Venezuela: Venezuelan Chamber of Construction (CVC) president Mauricio Brin has estimated a capacity utilisation of 12.5% - corresponding to a production of 1.5Mt of cement from an installed capacity of 12Mt/yr. Noticias Financieras has reported that, according to Brin, production, which was hampered by power shortages, was sufficient to meet the construction sector’s demand. “Public construction has stalled and private investment is restricted to limited office developments in state capitals,” said Brin. He estimated a contraction of 95% year-on-year in construction compared to 2018.