Global Cement News

China: The cement sector on China's A-share market fell on 4 March 2013 following the announcement of new property control policies. China's central government announced on 1 March 2013 a set of measures to reduce rising domestic housing prices. The new measures included higher transaction duties, increased down payments and mortgage interest rates as well as strict purchase qualifications.

Cement demand in China is mainly driven by the property market and infrastructure construction. The market information supplier Chem99.com analyst Lu Ning said that the property market provided about 30% of the cement demand. Data from the China Cement Association showed that profits for the domestic cement industry fell by 32.8% year-on-year in 2012 to US$10.6bn.

Greece: Titan Group has reported a net loss of Euro24.5m for 2012. In 2011 it reported a net profit after tax and minority interests of Euro11m. This is the first time Titan has posted a loss since 1994 according to Reuters data. The Greek cement producer attributed the loss to the collapse of building activity in Greece, as well as the slowdown in Southeastern European markets, which suffered the spill-over effects of the Eurozone crisis.

Titan posted an increase of turnover of 3.6% to Euro1.13bn in 2012 from Euro1.09bn in 2011. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) fell by 19.8% to Euro196m from Euro244m.

By region, Titan estimates that demand for cement in Greece has fallen to below 25% of the levels recorded in 2006. Turnover fell by 11% to Euro240m and EBITDA fell by 9% to Euro32m. Exports doubled in 2012 though. In Southeastern Europe, turnover declined by 7% to Euro255m and EBITDA fell by 26% to Euro64m.

In the Eastern Mediterranean region, which comprises Egypt and Turkey, turnover increased by 7% to Euro296m. EBITDA fell by 26% to Euro94m. The Group noted that in 2012 'despite the prevailing political uncertainty' cement consumption reached new highs in Egypt. Operating margins, however, were adversely affected by the considerable increase in the cost of natural gas and electrical power. In the US activity in the construction sector increased. Turnover in the USA rose by 22% to Euro369m and EBITDA rose to Euro6m, from a Euro6m loss in 2011.

In its outlook for 2013 Titan expects 'another challenging year' with continued poor performance and scope for further decline in Greece and Southeastern Europe. The growing cost of production in Egypt due to political and economic issues is anticipated to negatively affect results. Conditions should remain positive in Turkey and the US.

Egypt: Minister of Industry and Foreign Trade Eng. Hatem Saleh has said that the ministry is considering imposing of a levy on cement exports due to 'unjustifiable' increases in cement prices on the local market. In a press statement the Saleh added that cement prices had increased by 66% due to a 'remarkable' deficit in cement quantities.

Saleh pointed out that the 'exaggerated' price rises were 'inconsistent' with the recent increase of energy prices for cement plants imposed by the government. He said that the energy rise only represented up to 18% of the price increase seen. Saleh stressed that the Egyptian government will not ignore any manipulation of prices that add further burdens for consumers.

Chile: Chilean cement-and-concrete firm Melon reported a 15.6% rise in revenue to US$458m in 2012. The Grupo Brescia subsidiary saw its profits rise by 3.13% to US$9.19m despite high electricity costs. The cement sector in Chile grew by 11% in 2012.

India: UltraTech Cement announced on 1 March 2013 that it had temporarily shut down its 3.6Mt/yr Awarpur plant in Maharashtra due to workers' unrest. UltraTech reinforced that the closure would not substantially effect the company's financial performance.