Displaying items by tag: demand

China/India: Research organisation Fitch Ratings has forecast continued ‘steady’ growth of 6 – 8% year-on-year in cement demand in India in 2024. Meanwhile, it expects demand in China to remain ‘weak,’ amid low activity levels in the residential construction sector. Nonetheless, Fitch Ratings said that rising installed cement capacity will limit growth in producers’ profit margins in India, while producers’ profit margins will stabilise in China.

North America: Sweden-based Bruks Siwertell successfully delivered three new road-mobile ship unloaders to two cement industry customers in North America, including one in Mexico, in November 2023. Both customers selected the supplier’s 10 000 S Siwertell unloaders. One of the cement producers now has four such units in operation, and the other now has one.

Bruks Siwertell project development engineer Pedro Alfaro said “The US is seeing a huge rise in demand for cement, and our technology is helping operators meet these volume increases in the most sustainable way possible.” He continued “Road-mobile units ensure minimal dust emissions and enclosed and spillage-free conveying, and offer excellent through-ship capacity and the flexibility of being able to move between sites. We are also one of the few companies able to supply a ship unloading solution that can discharge cement from vessels directly to trucks.”

Brazil: The Brazilian National Cement Industry Association (SNIC) has forecast a drop of 1% year-on-year in cement consumption in Brazil during 2023. This is due to a slowdown in the residential construction sector, which accounts for 70% of national demand. SNIC forecast a 2% year-on-year rise in cement demand in 2024, due to increased infrastructure activity.

Brazil produced 52Mt of cement during the first 10 months of 2023, down by 2.1%. The country produced 61Mt of cement in 2022, corresponding to a capacity utilisation rate of 65%.

US: Ireland-based CRH has concluded a deal for the acquisition of Martin Marietta Materials’ South Texas business. This includes the 2.1Mt/yr Hunter cement plant, a network of cement terminals on the Gulf of Mexico and 20 ready-mix concrete batching plants. The value of the transaction is US$2.1bn.

CRH chief executive officer Albert Manifold said “The acquisition of these high-quality assets further strengthens our market leading position in Texas and increases our exposure to attractive, high-growth markets. Our ability to leverage our cement expertise and technical capabilities will enable us to enhance and optimise our existing footprint in Texas, resulting in significant synergies and self-supply opportunities. This transaction reflects our disciplined approach to capital allocation as well as our commitment to deliver further growth and value creation for our shareholders. We also believe there is significant potential to unlock additional growth opportunities across an expanded footprint in this attractive growth market.”

Kazakhstan/Kyrgyzstan: The government of Kazakhstan’s Jambyl Region says that investors have come forward to support construction of a proposed railway between the region and Kyrgyzstan. Central Asia News has reported that a major cement plant construction project is underway in Jambyl Region. Regional governor Yerbol Karashukeyev said that Kyrgyzstan is undergoing a ‘building boom,’ including in the major market of Bishkek, 20km from the border with Jambyl Region.

Karashukeyev said “In view of the rapid development of the market in Kyrgyzstan and the production of large volumes of construction materials in Kazakhstan, it is worth developing cooperation.”

South Africa: PPC recorded consolidated sales of US$335m during the first half of the 2024 financial year, up by 21% year-on-year from US$277m during the first half of the 2023 financial year. Meanwhile, its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 47%, to US$58.1m from US$39.6m. The group increased its cement sales volumes by 4%, and currency effects further helped to offset a 16% rise in its cost of sales. Cement volumes fell in South Africa, however PPC noted a locally ‘resilient performance’ despite a challenging market there and in Botswana, a ‘strong recovery’ in Zimbabwe and a ‘continued positive trajectory’ in Rwanda, via its subsidiary CIMERWA.

PPC said “The key focus for PPC will remain on its southern Africa businesses, including South Africa, Botswana and Zimbabwe. This includes continuing to improve its profitability and enhance returns through further operational efficiencies and cost containment measures. Without a significant increase in infrastructure spending and South African gross domestic product, South Africa's cement demand is expected to remain subdued and sustainability is therefore dependent on both capital discipline and margin management. Notwithstanding, PPC South Africa remains well positioned to benefit from an increase in cement demand, with additional capacity readily available to capture an upswing in demand without significant additional capital expenditure being required.”

Malaysia: Hume Cement Industries recorded US$65.5m in sales during the first quarter of the 2024 financial year (beginning 1 July 2023). This represents 48% year-on-year growth from US$44.2m one year previously. The producer’s profit was US$10.3m, against a US$2.57m loss in the first quarter of the 2023 financial year.

Bernama Daily Malaysian News has reported that Hume Cement Industries expects domestic cement demand to rise throughout the 2024 financial year. Nonetheless, the company said “The board remains cautious, as the uncertainties arising from geopolitical pressures continue to challenge the cement industry's input costs. The group is increasing its focus on developing sustainable construction materials in this growing economy, while continuing its efforts to enhance operational excellence.”

Denmark: The first nine months of 2023 brought 1.8% year-on-year growth in FLSmidth’s consolidated sales, to Euro767m. The contribution from its cement business declined by 17%, however, to Euro188m, 24% of total sales. The division’s order intake dropped by 24% to Euro164m.

The group said “Our cement business continued to be adversely affected by the global slowdown in market demand. Consequently, we continue to take the steps necessary to preserve the long-term profitability of the business, including a significant rightsizing of the organisation. Further, our pure play strategy is progressing according to plan, and the ongoing operational and legal separation of the cement business is expected to be finalised towards the end of 2023.”

India: SRMPR Cements has launched its Portland pozzolana cement (PPC) for the first time, in Tamil Nadu. The Hindu BusinessLine newspaper has reported that the company controls 420,000t/yr of cement production capacity across three facilities in Tamil Nadu and neighbouring Andhra Pradesh. It invested a total US$27m in its production facilities and warehouses. SRMPR Cements will sell its PPC in 50kg bags. It also plans to launch ordinary Portland cement (OPC) in the future. It said that its products will help to meet ‘massive’ demand from public construction projects.

CEO Ohm Prakash said that the producer has already concluded deals with 100 different regional retailers of cement.

US: Eagle Materials sold 4.14Mt of cement during the first half of its 2024 financial year, from 1 April 2023, a slight increase from the volume sold in the same period in its 2023 financial year. It reported sales revenue from its wholly owned cement business of US$614m, up by 15% year-on-year and corresponding to 50% of total group sales. Overall, group revenue rose by 4.9% to US$1.22bn.

President and chief executive officer Michael Haack said "Market conditions for our construction materials remained resilient during the quarter, even as the Federal Reserve continued to raise interest rates and tighten money supply to contain inflation. Several factors helped offset the higher rates and supported demand for cement, including limited housing supply, strong homebuyer demand, increasing infrastructure awards and significant investment in domestic manufacturing facilities. As demand remained strong and our operations remained nearly sold-out, we implemented a second round of cement price increases in early July across half our markets, and announced the next round of price increases for early January 2024.” Haack added “We expect that our portfolio of businesses will remain well-positioned for the second half of fiscal 2024."