Global Cement Newsletter

Issue: GCW784 / 04 November 2026

Headlines


The US Midterm elections have taken place but we have more important matters to discuss: the state of the US cement sector. The United States Geological Survey (USGS) published its half-year report a few weeks ago and the larger cement companies have been releasing their latest financial results over the last week or so. Let’s track what’s been happening.

Graph 1: Cement shipments by region in the US in the first half of 2025 and 2026. Source: USGS.

Graph 1: Cement shipments by region in the US in the first half of 2025 and 2026. Source: USGS.

The USGS data shows that domestic cement shipments grew by 7% year-on-year to 40.8Mt in the first half of 2026 compared to 38Mt in the same period in 2025. Imports fell by 2% to 8.8Mt from 9Mt. Overall shipments grew by 6% to 49.8Mt from 47Mt. By region, shipments rose, particularly in the Midwest and the Northeast.

On imports it is worth noting that the USGS shows a decrease in Portland and blended cement import shipments but a slight increase in hydraulic cement and clinker imports. Clinker may be one reason for the difference here but the USGS points out that the import and shipment figures don’t always tally up. Of the larger importing countries, Canada’s rose by 8% to 2.11Mt and Vietnam’s by 20% to 3.1Mt. However, Mexico’s fell by 10% to just under 0.5Mt and Türkiye’s by 2% to 4.06Mt. In Canada’s case this was before the temporary import tariffs were enacted from August to September.

Analyst Ed Sullivan’s take on this is that private sector data centre and utility construction has boosted construction activity significantly in the first half of the year. This is expected to continue in the second half of 2026 and into 2027. He also notes that these kinds of projects can reflect a large share of a state’s cement consumption. When these projects are built, cement consumption may subsequently reverse noticeably. As ever, Sullivan is mindful of interest rates and the negative effect that geopolitical events such as the US war with Iran may have ultimately on construction activity, although he does point out that data centre and utility construction is relatively immune from this.

The larger cement producers have all reported rising revenue and earnings year-on-year for the first nine months of 2026. This seems to have started to slow down in the third quarter of 2026 to varying degrees. Amrize, for example, reported that its cement sales volumes were up by 4% year-on-year to 17.3Mt in the first nine months of 2026 but that they fell by 4% year-on-year to 7Mt in the third quarter of 2026. It blamed the latter on poor weather in the Northeast, South and Central regions, “...partially offset by steady-state and federally-funded multi-year projects.” Despite this it still managed to put its cement prices up in the third quarter although, to be fair, it noted mounting energy, fuel and freight costs.

CRH reported a similar situation, with slowing revenue and earnings in the third quarter citing a “challenging cost environment and subdued residential activity.” As well as completing its acquisition of aggregates and infrastructure company Arcosa in the third quarter, the company also launched its Velocity cost savings and efficiency initiative. Cemex experienced growing sales but falling operating earnings in both the third quarter and first nine months of 2026. It attributed this to input cost inflation, lower cement prices and an unplanned outage at its Brooksville cement plant in Florida. It added that demand was being led by infrastructure projects. It also agreed with Ed Sullivan about the prominence of data centres and the wide AI ecosystem in construction, saying that a high-single digital percentage of its ready-mixed concrete volumes in the first nine months of 2026 were related to AI projects.

Heidelberg Materials announced that its sales and earnings in North America increased in both the year to date and the third quarter. It attributed this to infrastructure activity, industrial and data centre construction. It too put up prices to mitigate against cost inflation. Lastly, it pointed out that aggregates remained its ‘key growth driver.’ Quickcrete Holdings became a major US-based cement producer in 2025 when it bought Summit Materials. It is also a private company. However, S&P reduced its forecast for Quikcrete’s adjusted leverage in June 2025 on the basis that it expected growth in the company’s cement, ready-mix, aggregates and ductile iron pipe markets.

Infrastructure spending flowing from the Infrastructure Investment and Jobs Act (IIJA) has been a driver of US cement demand in recent years. This may be starting to slow now depending on who one asks. Luckily though the data centre boom and utilities appear to be kicking in. Residential drivers are not looking as strong, especially as prices continue to rise in connection to the situation in Iran. Prices have been cited as a key voter issue in the recent US elections and many of the cement companies featured above have put up their prices.

If the third-quarter producer financial reports summarised here are indicative, then volumes look set to soften. In response, cost-saving exercises such as CRH’s Velocity program may proliferate. Another side of this may be increased interest in secondary cementitious materials (SCM) to cut clinker costs and/or energy savings schemes such as using more alternative fuels. Note last week’s announcement that Rodan Energy Solutions and St. Marys Cement are planning a battery energy storage system (BESS) for the Bowmanville plant in Ontario. It’s not in the US but it is close by and well positioned for exports. The next few quarters look unpredictable.


Germany: Manuel Mohr has become the CEO of the German Cement Works Association (VDZ). He succeeds Martin Schneider, who is due to retire by the end of 2026.

Mohr previously worked as the Head of Political and Economic Affairs at the VDZ from 2015. Alongside this he has also worked as the Managing Director of the InformationsZentrum Beton since 2021. Earlier in his career, he worked as Energy and Environmental Policy Advisor for the German Cement Manufacturers Association (BDZ) from 2011 to 2015 and a Research Associate - EU Energy and Climate Policy at the Institut für Europäische Politik from 2010. Mohr holds an undergraduate degree in social sciences from the Humboldt University of Berlin and a master’s degree in European Union Studies from Leiden University.


Germany: Holcim Germany has appointed Michael Kappes as the manager of its Kollenbach cement plant in Beckum.

Kappes previously worked as Production Manager at the Beckum plant from 2025. Before this he was the Maintenance Manager at the Dortmund cement plant. Previous roles at the Beckum plant included Process Engineer, Environmental Protection Officer and Industrial Mechanic. Kappes holds an undergraduate degree in mechanical engineering from the South Westphalia University of Applied Sciences.


Egypt: Royal El Minya Cement has appointed Mohamed Raafat as Industrial Director for White Cement.

Raafat previously worked as a plant manager for associated company Cleopatra Cement from 2022. Both Royal El Minya Cement and Cleopatra Cement are part of SESCO Group. Earlier roles with Royal El Minya Cement from 2010 included Production manager positions. Before this he worked as control room operator roles for Arab Swiss Engineering and Cimpor.  Raafat is a graduate in chemical engineering from Alexandria University.


Thailand: Germany-based KHD Humboldt Wedig has appointed Martin Lund as Senior Business Development Manager, based in Thailand.

Lud is a long-term FLSmidth and then Fuller employee. His most recent role was as Head of Service Execution - Indonesia Cluster for FLSmidth and then Fuller from 2020. Prior to this he worked for FLSmidth starting as a Mechanical Supervisor in 2000. He later became a Field Engineer based in Thailand before moving into cement sector managerial roles in Australia, the Philippines and Thailand.


Germany: Heidelberg Materials announced its results for the first three quarters which ended on 30 September 2026. Revenue was recorded as €6.4bn, up by 10% year-on-year compared to the €5.8bn recorded in the corresponding period of 2025. Results from current operations rose to €1.3bn, up by 9% from €1.2bn in the same period of 2025.

The Transformation Accelerator Initiative announced in November 2024 continued to contribute to the Heidelberg Materials' results. According to the company, it will exceed its target of €500m in savings by the end of the 2026 financial year. Dr. Dominik von Achten, Chairman of the Board of Heidelberg Materials, said "We will continue the initiative in the next two years and expand it. By the end of 2028, we want to save another €300m."


Pakistan: According to the All Pakistan Cement Manufacturers Association, cement sales in Pakistan increased by 0.4% year-on-year to 4.81Mt in October 2026. Cement exports, on the other hand, fell by 3.7% year-on-year to 770,000t, mainly due to the closure of the border with Afghanistan.

In the first four months of the 2027 financial year (July-October), total cement sales rose by 2.9% year-on-year to 18Mt. Exports fell by 9.5% year-on-year to 3.1Mt.


Oman: Holcim has invested in 44.01, a developer of mineralisation technology where captured CO₂ is injected into naturally reactive ultramafic rock formations, and mineralised into stable carbonate rock. The investment, announced on 4 November 2026, will support 44.01's international expansion and marks the next step in an established commercial relationship between Holcim and 44.01.

Since July 2026, the two companies have been running a pilot project under live industrial conditions at Holcim's Fujairah cement plant in the United Arab Emirates, where CO₂ is now being safely stored underground and mineralised into solid rock. Other investors in 44.01 include Breakthrough Energy Ventures, Equinor Ventures, Air Liquide Venture Capital and Siemens Financial Services.


India: Mangalam Cement's net profit for the quarter which ended 30 September 2026 was reported as US$782,792, down by 63.2% year-on-year from US$2.1m recorded in the corresponding period of 2025. Net revenue for the July-September quarter of 2026 was recorded as US$45.8m, up by 9.7% year-on-year from the US$41.8m recorded in the same period of 2025. Operating expenses increased by 11.5% year-on-year to US$41.5m from US$37.2m in the corresponding period of 2025.


Palestine: President Mahmoud Abbas inaugurated Palestine’s first clinker grinding plant in the Nuwai’ma area of Jericho on 2 November 2026. The facility has a production capacity of 1.13Mt/yr. According to the Palestine Investment Fund, the estimated cost of the project is around US$85m and is being developed by Jericho Cement Company in partnership with Issa Khoury Group for mining and construction industries. Development began in 2022, with the mill previously scheduled to become operational by the end of 2025. The plant is expected to employ up to 100 workers.

The grinding plant incorporates technology originally supplied by Denmark-based FLSmidth (now Fuller Technologies), with static and structural equipment supplied by GEPCO. The facility includes a vertical roller mill. Clinker is likely to be sourced from nearby Jordanian factories.

In a speech delivered on behalf of President Abbas, Prime Minister Mohammad Mustafa welcomed attendees to Jericho and the Jordan Valley, describing the project as a step towards domestic production of one of the key commodities in the national economy. Mustafa expressed hope that the project would pave the way for further industrial investments in Palestine.


Brazil: China-based Huaxin Building Materials Group signed an exclusivity agreement on 30 October 2026 to buy the Brazilian cement producer CSN Cimentos from Companhia Siderúrgica Nacional (CSN) in a deal that could reach US$2.35bn. According to CSN, a contract should be signed 'in the coming days.'

“Huaxin submitted the most advantageous proposal for the acquisition of CSN Cimentos as part of the competitive process launched in March 2026,” CSN said in a statement.

In early 2026 CSN announced its intention to sell assets, including CSN Cimentos and part of its logistics business, amid efforts to reduce its indebtedness.


Botswana: Cheetah Cement is planning to build a new cement grinding plant in Gaborone with a production capacity of 0.8Mt/yr, which it happens will increase domestic cement production and reduce reliance on imports.

According to the Sunday Standard newspaper, the proposed Gaborone plant will expand Cheetah Cement's manufacturing footprint and increase the local supply of cement used in housing, commercial developments and infrastructure projects.

Botswana Investment and Trade Centre (BITC) said that strengthening domestic value chains, including sourcing raw materials locally where feasible, remained important in developing Botswana’s manufacturing sector.


Kenya: East African Portland Cement Company (EAPCC) has reported a net profit of US$12.2m in the financial year which ended in June 2026, down by 69% year-on-year from US$40m recorded in 2025. The decline was largely driven by rising production costs and expenses associated with the company's business reorganisation. Operating performance also weakened, with the company recording an operating loss of US$403,232 compared to a profit of US$12.6m in the 2025 financial year. The decline came despite a 28% year-on-year increase in revenue to US$69.8m, up from US$54.5m in 2025.

EAPCC said that it will prioritise restoring operating profitability through improved plant efficiencies and optimal sourcing.


Egypt: According to Arab Finance, South Valley Cement has reported a net profit of US$2.5m in the first six months of 2026, compared to a net loss of US$1.9m in the corresponding period of 2025. Cement sales reached US$26.1m by the end of June 2026, up from US$23.6m in the same period of 2025.


India: JK Lakshmi Cement broke ground for Project Kamakshi at Umrangso village in Dima Hasao district on 30 October 2026. Project Kamakshi will be an integrated cement plant with railway sidings. According to the company, the plant will have a cement capacity of 2.5Mt/yr, supported by a 1Mt clinkerisation unit. The project involves an investment of US$1.16bn, including the mining lease, with completion scheduled for the 2029 financial year.


Pakistan: The country's cement sector reported a 19% year-on-year increase in profits for the first quarter of the 2027 financial year, according to a report by JS Global. Net sales rose by 18% year-on-year to US$790m, supported by an 8% year-on-year increase in domestic cement dispatches to 10.9Mt. Export volumes declined by 11% during the quarter.

Average cement prices rose in both the Northern and Southern regions, contributing to an increased capacity utilisation rate of 62%, compared with 58% in the corresponding quarter of the previous financial year.

Lucky Cement was the largest contributor to cement earnings, reporting a 17% year-on-year increase. Bestway Cement and Fauji Cement also contributed to the sector's growth, with the three companies collectively accounting for 66% of total sector earnings.


US/Ireland: CRH has reported revenues of US$11.4bn for the third quarter of 2026, up by 3% year-on-year. Its net income was US$1.2bn, down by 22% year-on-year from US$1.5bn previously. Adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) was US$2.7bn, representing no change from the third quarter of 2025. Looking ahead to the full year outlook, CRH said that it expects continued favourable demand across its markets, underpinned by public investment in infrastructure and continued reindustrialisation activity.

CEO Jim Mintern said “Against a challenging and volatile inflationary cost backdrop, our teams delivered a resilient third-quarter performance reflecting disciplined commercial execution, performance improvement initiatives and positive underlying demand in key end-markets.”


Afghanistan: The first integrated cement plant in southern Afghanistan was inaugurated in the province of Kandahar on 29 October 2026, according to Xinhua News Agency. Built on 40 hectares of land at a cost of US$113m, the plant has a production capacity of 0.5Mt/yr of cement. Sayed Sarwar Amani, head of the Kandahar Chamber of Industries and Mines, said that the plant’s capacity would increase to 1.65Mt/yr in the future.


India: Adani Group subsidiary Ambuja Cement reported a consolidated net profit of US$17.7m for the second quarter of the 2027 financial year ending 30 September 2026, down by 35% from the previous corresponding period and 90% year-on-year. Total expenses increased by 12% due to higher fuel costs, while revenue from operations rose by 10% to US$644m, according to the company.

The company attributed the decline in profits to increased fuel and logistics costs, driven by higher petcoke and coal prices, as well as increased diesel and packaging costs. It reported quarterly cement sales volumes of 16.5Mt, falling from 16.6Mt in the previous corresponding period.


Pakistan: Lucky Cement has announced a brownfield expansion of 3.2Mt/yr at its Karachi plant, with commercial production targeted for December 2027. This will take the company’s total cement production capacity in Pakistan to 18.8Mt/yr. The expansion and related renewable energy projects are expected to involve capital expenditure of at least US$180m. Lucky Cement management said in an analyst briefing on 29 October 2026 that the company would prioritise domestic demand before directing production towards export markets. It also said that no capacity expansion was planned in the northern region of Pakistan for ‘the foreseeable future,’ citing capacity utilisation of around 50% at its Pezu plant. The new production line will reportedly combine Chinese and European technology, with ‘most components’ to be sourced from China and ‘specialised equipment’ based on European technology.

Alongside the capacity expansion, Lucky Cement plans to add 22.5MW of wind power capacity at the Karachi plant. Total wind power capacity will therefore reach 51.3MW. Average coal consumption stands at around 135kg per tonne of cement at both of Lucky Cement’s integrated plants.


Philippines: The Cement Manufacturers Association of the Philippines (Cemap) expects cement demand to finish ‘flat’ in 2026, as construction activity across public and private projects remains ‘sluggish,’ according to local press. The president of Cemap, Reiner Dizon, said that cement demand from January to September 2026 was down 2-3% from the same period in 2025. However, the association hopes that there will be an increase in construction activity in the fourth quarter of 2026 to match last year’s figure of 34Mt. Dizon expects cement imports to decline by around 30% to 4Mt, largely due to the imposition of safeguard duties of US$5.48/t on shipments from China and Indonesia. The country currently has a production capacity of 52Mt/yr, compared with demand of 34Mt/yr.


France: In its third quarter financial results, Holcim has announced the acquisition of Cem'In'Eu Group. No value for the transaction has been disclosed.

Cem'In'Eu's first plant, Alienor Ciments in Tonneins, was inaugurated in 2018. Its second facility, Rhone Ciments in Portes-les-Valence, began operating in 2021. Both sites have a production capacity of 240,000t/yr of cement.


Vietnam: Cement consumption reached 93Mt between January - September 2026, as domestic demand increased market growth. Domestic sales reached 65Mt in the first nine months whilst exports reached 28Mt worth US$1bn. Peak construction season and public investment disbursement are expected to support domestic demand in the fourth quarter of 2026. Total cement sales could exceed the 112Mt recorded in 2025.

According to Viêt Nam News, the cement industry produced approximately 11Mt in September 2026, up by 27% year-on-year. Cement and clinker production reached 94Mt in the first nine months of 2026.

Among the three groups of producers, large corporate groups accounted for the biggest share of total cement output, followed by subsidiaries of the Vietnam Cement Industry Corporation (Vicem) and foreign-invested enterprises (FIE). All three groups increased production year-on-year, with FIEs recording the fastest growth.


India: JSW Cement has approved two capacity expansion projects involving a combined investment of US$113m. At its Vijayanagar plant in Karnataka, the company will install a ground granulated blast furnace slag (GGBS) grinding system with a capacity of 2Mt/yr. The project will cost US$53m.

At its Dolvi facility in Maharashtra, the company will establish an additional cement grinding mill with a capacity of 2Mt/yr. Commissioning is expected by October 2028.


US: Amrize has released its financial results for the third quarter of 2026, which ended on 30 September 2026. The company reported that revenues increased by 2.2% year-on-year to US$3.8bn, with net income also rising by 3.3% to US$560m. Adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) increased to US$1.1bn.


Pakistan: Kohat Cement Company has reported an increase in its financial performance for the first quarter of the fiscal year 2027, with earnings reaching US$11.9m. This marks a 13% rise year-on-year compared to the same period of 2026. The increase is attributed to higher retention prices and expanded gross margins.

According to AKD Securities Limited, the company's revenue increased by 15%, totalling US$42.6m.