Displaying items by tag: market
Swiss cement deliveries drop slightly in 2022
11 January 2023Switzerland: Cemsuisse, the Swiss cement association, recorded full-year national cement deliveries of 4.15Mt/yr throughout 2022. The figure represents a 0.7% year-on-year decline from 4.18Mt/yr throughout 2021. During 2022, ready-mix concrete batching plants received 73% of deliveries, while building sites received 20%. 37% of cement travelled to its destination by rail.
Cemsuisse said that energy uncertainty and rising inflation impacted on deliveries during the fourth quarter of the year.
Vicem's full-year sales grow in 2022
09 January 2023Vietnam: Vicem recorded full-year sales of US$1.68bn during 2022, up by 17% year-on-year. The producer sold 27.5Mt of cement, down by 6.7% year-on-year. Export sales volumes declined more sharply than those on the domestic market. Vicem responded to the cost impacts of economic disruptions arising from the on-going Russian invasion of Ukraine by raising its cement prices. Nonetheless, its profit fell by 30% year-on-year to US$63.9m.
Vietnam News Summary has reported that Vicem is aiming to achieve sales growth of 4% year-on-year in 2023, to US$1.74bn. Export sales growth prospects are strong, since China resumed its import of foreign goods at the end of December 2022. China consumed 54% of all Vietnamese cement exports in 2021.
Australia: Adbri has extended Independent Cement and Lime (ICL)'s contract to exclusively distribute its products to the New South Wales and Victoria markets. ICL is a 50% subsidiary of Adbri. Volumes under the renewed contract will be similar to those during 2022, while prices will reflect market conditions. Adbri said that ICL distributes a 'substantial' proportion of the cement produced at its Birkenhead cement plant in South Australia.
Adbri's interim chief executive officer Mark Irwin said “Independent Cement and Lime is Victoria’s pre-eminent cementitious products distributor and is an important part of Adbri’s supply chain across Victoria and New South Wales. We are pleased to extend our distribution arrangement with ICL through to the end of 2023. We look forward to the commissioning in 2023 of the Melbourne cement facility’s new 45,000t silo at Port Melbourne, which will enhance Independent Cement and Lime’s ability to service the Victorian market.”
Adbri had previously considered buying Barro Group's cement assets, which included the remaining 50% stake in Independent Cement and Lime, in 2018.
Pakistan: Lucky Cement commenced clinker production from a new 3.15Mt/yr kiln line at its Pezu integrated cement in Khyber Pakhtunkhwa in late December 2022. This latest expansion increases the producer’s domestic production capacity by 26% to 15.3Mt/yr, from below 12.2Mt/yr earlier in 2022. The company also operates cement plants in Democratic Republic of Congo and Iraq with an additional capacity of 4.4Mt/yr.
The International News newspaper has reported that Lucky Cement anticipates domestic cement demand to grow due to the rebuilding of homes destroyed by flooding in 2022.
Vietnamese coal consumption forecast to grow
03 January 2023Vietnam: 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.
Adani Cement to close two plants in Himachal Pradesh
16 December 2022India: Adani Cement has published its plans for the closure of two integrated cement plants in Himachal Pradesh. The Hindustan Times newspaper has reported the plants as ACC's 4.4Mt/yr Gagal cement plant in Bilaspur District and Ambuja Cements' 1.6Mt/yr Darlaghat cement plant in Solan District. The management of the Gagal cement plant said that losses ensuing from high operating costs, including transport costs, are the reason behind the decision to shut down that plant. ACC employs 1000 company staff and contractors at the site, and an additional 4000 truck drivers in its cement despatch operations. 3500 truck drivers also work in delivering cement from the Darlaghat cement plant. The Gagal cement plant alone reportedly despatches 5000t/day of cement for the Himachal Pradesh, Haryana and Punjab markets.
The Bilaspur District Truck Operators' Society said "The transport sector of Bilaspur is heavily dependent upon the Gagal cement plant. It's the source of livelihood for thousands of people, including operators, drivers and conductors. This decision should be reconsidered in the interest of the people." It added "Most roadside restaurants and mechanics' shops will also lose business. We never thought that this plant could ever stop functioning. It has been part of our landscape and economy for decades now."
India: The government of West Bengal plans to commence mining activity at the Deocha Pachami cement block in Birbhum District. The state hopes that the block will support further development of industries, including cement. Financial Express Online News has reported that Mangalam Cement, Purbanchal Cement and Shree Cement all plan to build new cement facilities in West Bengal. Shree Cement will invest US$102m in its planned Purulia grinding plant. Mangalam Cement's potential upcoming grinding plant will serve its planned new integrated cement plant in Chhattisgarh.
EU concludes CBAM provisional deal
15 December 2022Europe: The European Parliament (EP) of member states and the Council of the EU have concluded a provisional deal over plans for an EU carbon border adjustment mechanism (CBAM). Under the plans, importers of a range of emissions-intensive goods, including cement, will have to pay to obtain CBAM certificates for products entering the EU. Goods produced in countries with the same CO2 emissions reduction measures as the EU will be exempt from requiring a certificate. CNBC News has reported that the mechanism will enter force with a transition period beginning in October 2023. This is subject to ratification by the EP and member states independently.
EP member for the Netherlands Mohammed Chahim said “CBAM will be a crucial pillar of European climate policies. It is one of the only mechanisms we have to incentivise our trading partners to decarbonise their manufacturing industry.”
Vietnam National Cement Association lobbies against power price rise
15 December 2022Vietnam: 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."
Nine-month Chilean cement shipments drop by 14%
09 December 2022Chile: 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.