Displaying items by tag: demand

Zimbabwe: Livetouch Investments plans to build a new 200,000t/yr cement plant in Zvishavane, Midlands Province. The first phase of construction will reach completion in mid-2024 and cost US$20m. When subsequently commissioned, the plant will create 300 new jobs. The Chronicle newspaper has reported that the upcoming plant is situated close to Livetouch Investments' existing limestone resources.

Livetouch Investments' mananging director Kyle Wang said that the company is building the plant in order to reduce Zimbabwe's reliance on imports of cement, notably via Zambia. Zimbabwe already has a cement capacity of 2.6Mt/yr, but a cement demand of just 1.6Mt/yr.

Vietnam: New cement lines will raise Vietnamese cement production capacity by 4% year-on-year in 2023 to over 120Mt/yr. Vietnam News Summary has reported that upcoming new capacity scheduled to commence operations during the year include a 4.5Mt/yr line at a Xuan Tanh Cement plant and a 2.5Mt/yr line at a Long Son Cement plant.

Vietnamese cement demand was 65Mt in 2022. Several producers suspended cement lines during the second half of that year due to high costs and unfavourable market conditions.

Bolivia: The Bolivian National Institute of Statistics (INE) recorded total national cement production of 3.3Mt during the first 10 months of 2022, up by 12% year-on-year from 2.9Mt in the corresponding period of 2021. Meanwhile, cement sales rose by 5.6% year-on-year to 3Mt, from 2.84Mt. Compared to 2019 volumes, cement sales fell by 5.6% from 3.96Mt. Nonetheless, Bolivian Cement and Concrete Institute (IBCH) general manager Marcelo Alfaro said that the results 'consolidated the rebound' that began in 2021. Cement sales volumes previously dropped by 23% year-on-year to 3.03Mt in 2020, amid successive Covid-19 lockdowns.

Fábrica Nacional de Cemento (FANCESA) commercial manager Álvaro Cuéllar said "FANCESA is making the necessary efforts to meet its share of the domestic market." Cuéllar added "We are close to 9Mt/yr of capacity for a market that in 2019 approached 4Mt/yr. That is why we have many kilns stopped and the industry is working at half speed."

China: China Resources Cement (CRC) recorded a 74 - 78% year-on-year net profit drop in 2022. As such, its full-year net profit was US$255 - 302m. Reuters has reported that the group attributed the drop to subdued demand from construction, increased production costs and low cement and clinker prices in the regions where it operates.

Despite the slow situation in the construction market, CRC's property development arm recorded a rise in its rental income throughout 2022.

Vietnam: Vietnam National Coal and Mineral Industries Group (Vinacomin) has forecast 6.1% three-year growth in national coal demand to 115Mt in 2025 from 108Mt in 2022. Four main industries – cement, fertilisers, metal and power generation – are expected to retain over 90% of the combined share of domestic consumption. Vinacomin expects national coal production to increase by 1.3Mt/yr over the period, retaining a 40 – 45% stake in the domestic market. Five-year consumption of imported lignite is forecast to rise to 70 – 75Mt throughout the period up to 2026.

Vietnam: The Vietnam National Cement Association (VNCA) has spoken about the difficulties that would arise from a proposed power price rise by state-owned Electricity Vietnam (EVN). VNCA chair Nguyen Quang Cung said that cement producers foresee 'business havoc' ensuing from any further cost increase to their operations. The industry says that reduced demand has prevented them from raising cement prices amid already high costs. Coal price growth is a significant contributor, and now accounts for 60% of the industry's operating expenses.

Cung said "Many companies are suffering losses and have suspended the operations of many production lines." He continued "We understand that EVN is claiming force majeure because they face the same challenge relating to the input cost burden."

Chile: Cement shipments fell by 14% year-on-year during the first nine months of 2022, to 3.2Mt from 3.7Mt. The La Tercera newspaper has reported that a construction slowdown impacted on the cement sales of all three of Chile’s cement producers. Cbb’s despatches fell by 18%, Cementos Melón’s by 15% and Cemento Polpaico’s by 9.5%. At the same time, the producers’ expenses rose due to increased costs across transportation, raw materials, fuels, labour, administration and finance. Meanwhile, imported cement from Asia reportedly presents a cheaper alternative for customers.

Kenya: Bamburi Cement says that it expects its full-year earnings before interest, taxation, depreciation and amortisation (EBITDA) to fall by 25% or more year-on-year during 2022. The Kenyan Wall Street newspaper has reported that the producer attributed the anticipated decline to increased energy costs and reduced cement demand.

During 2021, Bamburi Cement recorded a turnover of US$338m and a profit for the period of US$11.3m.

UK: Breedon Group says that it recorded 10-month sales of Euro1.38bn so far in 2022, up by 14% year-on-year from the same period in 2021. The producer completed scheduled maintenance on Kiln 2 of its Hope cement plant in the UK on time and on budget. Throughout the period, it noted 'supportive' trading conditions, with 'resilience' from the majority of its markets in its Great Britain and Ireland regions. In the year's second half to date, Breedon Group's four-month sales grew by 16% year-on-year. The group said that it is on track for record full-year earnings in 2022.

CEO Rob Wood said “Visibility in the trading landscape has been poor for some years now, for a variety of reasons. Against this constantly changing backdrop, our team’s commitment and resolve have delivered quality products and great service to our customers, regardless of the economic or political landscape. For this, we thank them. Their focus and determination in turn continues to deliver for all our stakeholders.” Wood continued “This time last year, we reminded our investors of the agile and entrepreneurial DNA that sets Breedon apart. Our rapid response to changing market conditions, local focus, vertically-integrated business model and disciplined financial framework will again enable us to deliver record results in 2022."

Philippines: Vietnam Cement Industry Corporation (Vicem) has awarded a three-year, 6Mt cement and clinker import contract to Fenix (CEZA) International and Gold Falcon Trading Corp. The agreement will have effect from 2023 until 2025. ‎Việt Nam News has reported that Vietnam's Minister of Construction, Nguyen Thanh Nghi, and National Assembly chair, Vuong Dinh Hue, attended the contract's signing in Manila.

Declining demand, primarily from China, has diminished Vietnam's cement exports over past months. Vietnam produced 130Mt of cement in 2021, but consumed just 65Mt.