Global Cement News

Tunisia: Carthage Cement’s turnover fell by 12% year-on-year to US$72.8 in 2017 from US$82.6m in 2016. Clinker production dropped by 17% to 1.3Mt and cement production by 12% to 1.4Mt. Local sales of cement decreased by 2% to US$52.7m and exports by 80% to US$1.9m. The cement producer blamed its poor sales on a decline in the export market.

Ghana: Cement producers are lobbying the government to build new roads using concrete in order to use surplus cement. The country has a production capacity of 12Mt/yr but it only uses 8Mt/yr, according to Citi Business. The producers are calling on the president to make good on a previous statement on the matter.

Bolivia: Empresa Publica Productiva Cementos de Bolivia’s (Ecebol) new plant at Caracollo in Oruro is set to open by the end of 2018. Government minister Eugenio Rojas said that the 1.3Mt/yr plant would start testing in September 2018, according to La Jornada newspaper. The project had a budget of US$244m.

Venezuela: A cement plant at Valencia in Carabobo is only using 25% of its production capacity due to a lack of government investments. The plant was nationalised in 2017, according to the El Carabobeno newspaper. Reportedly it is the only plant out of four in the local area that is still operating.

US: Ed Sullivan, the Portland Cement Association’s (PCA) Senior Vice President and Chief Economist says that economic momentum supported by tax reform and federal infrastructure programs will play key roles in the demand for construction in the next few years. Sullivan made his comments at the World of Concrete event in Las Vegas, where he revealed details from his forthcoming spring forecast.

“There is little doubt that the near-term outlook for construction and cement consumption in 2018 and 2019 remains favourable,” said Sullivan. “Strengthening economic conditions, with the addition of fiscal stimulus, and in the context of already low unemployment could awaken inflationary pressures. Down the road, this could lead to an even more stringent monetary policy, leading to an acceleration in interest rate increases and an eventual cooling of construction markets. If this scenario plays out, it will likely take time to gestate and not materialise to a significant degree until after 2019.”

Sullivan noted the strong economy comes in context of continued strain to find skilled workers, including those needed for construction projects. Weather conditions and other economic factors prompted PCA to revise its 2017 Fall Forecast down slightly, though it says that its ‘fundamental’ assessments pertaining to the economy, construction markets, and cement consumption remain on target.

The PCA Spring Forecast will be released in early March 2018.