Displaying items by tag: demand

India: UltraTech Cement has projected that India’s cement demand will surpass 640Mt by the 2030 financial year, driven by a compound annual growth rate (CAGR) of 7-8% between the 2024 and 2030 financial years.

According to industry research and estimates, cement demand for the financial year ending 31 March 2024 stood at 424Mt. The growth is expected to be supported by rising infrastructure development and construction activity across the country.

Myanmar: A vessel carrying 3000t of cement has arrived at Mottama Port, following the government's decision in January 2025 to permit cement imports in an effort to meet domestic demand for cement.

The shipment arrived on 21 February 2025 via the Kawthaung Border Trade Station to be distributed. Additional cement shipments will arrive weekly to address the domestic shortage, according to NP News. Myanmar's cement demand is reportedly 10Mt/yr, while domestic production is below 8Mt/yr.

Vietnam: The general director of Vietnam Cement Industry Corporation (VICEM), Nguyen Thanh Tung, says that Vietnam will suffer continued cement overcapacity amid high production costs in 2025. Full-year production is forecast at 125Mt, 96% greater than an expected domestic demand of 63.5Mt. Việt Nam News has reported that Vietnam’s cement exports face an on-going investigation in Taiwan, and are already subject to anti-dumping duties in the Philippines.

VICEM aims to raise its domestic clinker sales volumes by 8% year-on-year to 18Mt, in order to generate sales of US$1.16bn. To this end, Tung urged the government to adopt cement reinforcement in roadbuilding, as well as lifting the export tax on cement.

Global: The World Cement Association (WCA) projects a 22% decline in global cement demand by 2050. Price increases are expected to continue in European and North American markets, while significant market restructuring is already underway to address overcapacity in China and Japan. Multinational companies are scaling back cement business and focusing instead on North America, while cement production in Europe continues to decline due to strict CO₂ regulations and capacity reductions.

India's cement production has surpassed 200Mt/yr, with domestic firms strengthening their position as multinationals exit the market. Chinese producers are expanding their presence, particularly in Africa and Southeast Asia.

WCA president Wei Rushan said “To remain both profitable and environmentally responsible, the cement industry must aim to reduce capacity by 50%, from 4.7Bnt/yr to 2.3Bnt/yr within the next decade. This requires focusing on modern, sustainable production units.”

Saudi Arabia: Cement sales increased by 12% year-on-year in the fourth quarter of 2024, reaching 14.87Mt, Arab News reports. Sales were primarily driven by domestic demand, which accounted for 96% of total sales. Exports contributed the remaining 4%, according to data from Al-Yamama Cement. For the full year, cement sales grew by 3.7% to 51.2Mt.

Al-Yamama Cement led the domestic market in the fourth quarter of 2024, with a 13% share and sales of 1.83Mt, up by 22% year-on-year. Qassim Cement, after acquiring Hail Cement, held an 11% share with 1.63Mt of sales. Yanbu Cement, Southern Cement, and Al Jouf Cement followed.

During the same period, Saudi Cement dominated in exports with 0.49Mt, representing 80% of total shipments and a 71% year-on-year increase. Clinker production grew by 7% year-on-year in the fourth quarter of 2024 to 14.9Mt, while clinker exports fell by 28% to 1.15Mt.

Amr Nader, CEO of cement consultancy A3&Co, said “These figures may not fully align with the anticipated surge in demand from ambitious infrastructure projects. Megaprojects such as NEOM, the Red Sea project, and FIFA World Cup-related developments require vast quantities of construction materials. The maximum anticipated demand in the next five years is 78Mt/yr.”

Iran: The country’s cement production capacity has reached 90Mt/yr, with 85% of machinery and parts manufactured domestically, according to Majid Vafapour, head of the Cement Industry Employers Association.

Vafapour said domestic demand is fully met, with any surplus exported. He noted that reduced infrastructure activity due to funding constraints has driven higher exports.

Vafapour said “If international challenges are resolved and domestic projects regain momentum, the current 90Mt/yr capacity could be fully utilised for domestic consumption.”

Efficiency initiatives, including the use of additives, could boost output by 20% without new facilities, according to The Tehran Times. However, energy supply disruptions have left over 30 kilns idle, according to Vafapour, and clinker reserves have dropped below strategic levels.

Uzbekistan: Cement sales on the Uzbekistan Commodity Exchange (UZEX) grew by 58% year-on-year to 5.9Mt in 2024, with average monthly sales exceeding 0.49Mt, according to Business World Magazine.

Ahangarantsement held 18% of total cement sales volume, followed by Kyzylkumsement (3%) and Bekabadcement (1%). Tashkent and the Tashkent region observed the highest demand for cement at 34% of purchases, followed by Samarkand (15%) and Kashkadarya (14%). Ferghana held 8%, with other regions purchasing smaller volumes.

India: Cement companies are expected to report weak financial results for the December quarter of the 2025 financial year due to lower demand, suppressed by reduced government infrastructure spending and weak private capital expenditure, according to The Hindu Businessline.

Large players, including UltraTech Cement and Ambuja Cements, are expected to lead demand growth by 8% year-on-year in the December quarter, but earnings before interest, tax, depreciation, and amortisation (EBITDA) may decline by 18%. Efforts to increase prices in October and November 2024 were rolled back, and a mid-December increase reportedly failed to boost profits.

Parvez Qazi, research analyst at Nuvama Research, said “We expect further consolidation in the space mostly in the southern region due to its fragmented nature. Softening fuel prices, along with cost efficiency measures undertaken by various players, are likely to provide some relief on the cost front, thereby cushioning the impact of weak realisations to some extent.”

Malaysia: Makin Teguh Sdn Bhd (MTSB) has increased its production of cement to 700t/day to address construction demand in Sabah’s east coast amid a blockade affecting Cement Industries Sabah (CIS), according to the Daily Express. The plant was commissioned in October 2023.

The blockade reportedly stems from a land ownership dispute, where individuals have blocked an access road, leaving CIS unable to distribute cement from its facility.

Charlie Lee Puan Kiang, MTSB operations director, said “Our primary objective is ensuring stable cement supply throughout Sabah’s east coast. We are encouraging hardware stores and cement distributors to use our abundant supply.”

Global: The World Cement Association has released a white paper titled ‘Long-Term Forecast for Cement and Clinker Demand’, authored by CEO Ian Riley. The paper predicts a global decline in cement demand to 3Bnt/yr by 2050, with clinker demand dropping to 1.5Bnt/yr.

The report attributes the decline to decarbonisation, technological advancements and market dynamics, with the need for carbon capture and storage consequently reduced.

Ian Riley said “The cement industry is undergoing an unprecedented transformation. As we move towards a decarbonised future, understanding the true demand for cement and clinker is critical to ensuring that policies, technologies and investments align with reality. This white paper aims to provide industry leaders and policymakers with the clarity needed to plan effectively and sustainably.”

The analysis also explores disruptive factors such as alternative materials, supply chain optimisation and clinker-free technologies, presenting three scenarios to guide stakeholders in adapting to industry changes and fostering innovation.