Global Cement News
Search Cement News
HC Trading and Interbulk Trading merge operations 23 November 2016
Germany: HC Trading and Interbulk Trading have merged their operations to form HC Trading, following the acquisition of Italcementi by HeidelbergCement. The merger will continue the group’s international trading activities, specialising in cement, clinker, coal and petroleum-coke by expanding the trade network and improving its position in the market. The total turnover of the new trading company will be around US$1.4bn.
“We trust that, by having an enlarged geographic reach as well as an expanded product portfolio, we will be able to further enhance our efficiency to better serve the market and our business partners,” said Emir Adiguzel, the chief executive officer of HC Trading. He added that the group intends to use idle capacity from former Italcementi plants to meet demands from import facilities in Africa, North America and South East Asia.
Otmar Hubscher appointed CEO of Secil
Written by Global Cement staff
23 November 2016
Brazil: Otmar Hubscher has been appointed as the new chief executive officer of Secil. He replaces Gonçalo Salazar Leite, according to the Negócios newspaper. Hubscher, a Swiss national, was previously the head of LafargeHolcim's Brazilian operations.
Cement consumption in Russia falls by 10.9% so far in 2016 22 November 2016
Russia: Cement consumption has fallen by 10.9% year-on-year to 44.3Mt in the first nine months of 2016 from 49.8Mt in the same period in 2015. The biggest decreases occurred on the Central, Volga, Siberian and North-Western federal districts, according to data from the Russian Cement Association (CMPRO) and the Russian Construction journal. Cement production has fallen by 10.9% to 43.5Mt from 48.9Mt. The falls in consumption and production have been blamed on a poor construction market although the residential sector picked up slightly in the third quarter of 2016.
India to take 20% hit in cement demand due to demonetisation 22 November 2016
India: Demonetisation policy is expected to reduce cement demand by 15 – 20% until the end of 2016. It will then reduce growth by 3% in the last quarter of the Indian financial year that runs until the end of March 2017, according to a report by Deutsche Bank Markets Research. It added that investors forecast the drop in short-term demand to be ‘severe.’
Research Analyst Chockalingam Narayanan said that he expected demand from infrastructure projects to partially offset weakness in the residential sector. However, investment towards these projects may be impaired where the revenue comes from state government. These bodies rely on up to 10% of their revenue from the property sector that may be adversely effected by demonetisation. Local bodies are responsible for projects such as rural roads, urban development projects, affordable housing, irrigation and more. Larger road and railway budgets are mostly controlled by central government agencies and are expected to be less effected.
All Pakistan Cement Manufacturers Association warns of risk of coal price to industry 21 November 2016
Pakistan: The All Pakistan Cement Manufacturers Association (APCMA) has expressed concern over the effect that rises in the price of coal have had on the cost of cement production. Coal prices have nearly doubled to US$105/t from US$54/t in May 2016, according to the Nation newspaper. The cost of coal contributes more than 30% to the total production cost of cement manufacture. Coal prices have been rising since May 2016 when China started to limit its coal mining capacity. This has since been compounded by stricter local rules on coal transportation in Pakistan. The APCMA has urged the government to focus on the residential sector to diversify the construction industry.