Displaying items by tag: uncertainty

Austria: RHI Magnesita reported revenues of Euro3.3bn throughout 2022, up by 30% year-on-year from 2021 levels. The refractories supplier's raw materials and shipping costs rose, but it was able to offset the rise by increasing its prices. The company said that this generated Euro600m in additional revenues, enabling it to maintain profitability 'through a challenging economic cycle.' It noted global volatility and uncertainty, which it expects to continue into 2023, for which it forecast a full-year drop in global cement demand. It expects 'strong growth' in India to offset any resulting decline in its sales in other markets.

RHI Magnesita CEO Stefan Borgas said "I am pleased to report growing progress on our mergers and acquisitions strategy, with acquisitions in India, China, Türkiye and Europe agreed or completed during the year. Whilst the outlook for 2023 is more uncertain than prior years due to slowing demand for refractories and softer pricing in certain regions, RHI Magnesita is able to face these challenges in a much stronger condition as a result of the implementation of its strategic cost savings and sales strategies over the past four years."

US: The Portland Cement Association (PCA) has releases a two-year forecast of moderate growth in cement consumption between 1 January 2020 and 31 December 2021. It projected growth of 1.7% in 2020, slowing slightly to 1.4% in 2021, corresponding to 2.1% and 1.7% GDP growth annually. Speaking at the 38th International Cement Seminar in Atlanta, PCA senior vice president and chief economist Ed Sullivan projected consumption growth of 1.6% - 2.3% in 2019 against GDP growth of 2.4% over the period, with consumption bolstered by the 2018 Federal Budget, which allowed for US$20bn in infrastructure investments in 2018 and 2019. He noted growing uncertainty (21% in 2019) with the expiry of the ‘pent-up demand zip that invigorates the initial stages of economic recovery long past.’

Rising house prices and mild inflation signify the continuation of the US economy’s longest expansion post-World War Two, with 161,000 net new jobs generated so far in 2019. With a forecasted population increase of 60m by 2040, US cement producers appears still have their work cut out in keeping up with demand.