Global Cement News

South Africa: PPC expects its group cement sales volumes to increase by 4 - 8% year-on-year for the financial year to 31 March 2022 due to strong performance in Zimbabwe and Rwanda. In an operational update it said that sales revenue is also expected to rise by 11 – 15%. However, sales volumes and sales revenue growth was reported as slower in South Africa and Botswana due to strong demand due to home improvement projects during the previous period.

The cement producer noted that it had yet to experience any ‘meaningful uplift’ in cement sales following the government’s decision to only use locally produced on infrastructure projects. It said that cement sales in coastal regions of South Africa were behind those in the previous reporting year. It said that cement imports, mainly from Vietnam, increased by 11% and accounted for approximately 10% of the local market.

Malaysia: Sharuddin Omar Hashim, the managing director of Cement Industries of Malaysia Berhad (CIMA), says that rising input materials, especially coal, are driving up the cost of cement. He blamed the mounting price of coal on Indonesia’s export ban and the war in Ukraine, according to the Malaysian National News Agency. Sharuddin said that coal had previously cost up to US$70/t but it was now US$200/t, with the possibility of reaching US$400/t. Other raw material costs were also reported to have risen sharply due to logistic problems following the Covid-19 pandemic. Sharuddin added that his company is trying to optimise production and reduce production costs through the use of other alternative materials.

Oman: The Ministry of Commerce, Industry and Investment Promotion has held a meeting with cement companies, importers, distributors and related government departments to discuss cement shortages in some regions of the country. One local plant has suspended production due to high input costs, according to the Oman Daily Observer newspaper. However, Oman Cement Company says it is prepared to boost its production by 10% to meet local demand. Following the meeting the ministry has taken several steps to ensure the availability of cement across the country and maintain prices. These include increasing the production output at some cement plants and increasing imports.

US: Argos USA has agreed to sell a total of 23 US ready-mix concrete batching plants to Smyrna Ready Mix Concrete for US$93m. 18of the plants are situated in North Carolina and the remainder in Southwest Florida. The El Colombiano newspaper has reported that the deal includes a five-year cement supply agreement for all 23 plants. Cementos Argos said that the divestment is part of its plan to divest assets in suburban markets or that are not already integrated into its production and logistics chain.

China: China Shanshui Cement has forecast full-year consolidated operating revenues for 2021 of US$3.88bn, up by 18% from 2020 levels. Its profit meanwhile dropped by 13% to US$437m.