Global Cement News

Argentina: The Ministry of Internal Trade has secured an agreement from national building materials producers, including Loma Negra and Cemento Avellaneda, to restrict the price of building products such as cement. The Clarín newspaper has reported that average building materials prices rose by 85% year-on-year in May 2021, nearly double the inflation rate. The primary cause is a rise in domestic construction. Currency effects have further increased the cost of building due to the dollarization of materials such as steel.

The ministry previously negotiated concerted price reductions in September 2020 and December 2020. Minister for Internal Trade Paula Español urged building materials producers to maximise their capacity utilisation to meet demand and protect the domestic market.

India: The South India Cement Manufacturers’ Association (SICMA) has assured the public that it is collaborating with the Tamil Nadu government to implement concessionary cement prices for lower income homebuilders. The Business Standard has reported that the association and government aim to keep cement available to all. Domestic cement production capacity utilisation has been reported as low as 60% during the second wave of Covid-19 in the country with a 35% month-on-month production drop in April 2021. Increased input costs caused a price rise in the first quarter of the 2022 financial year. Cement prices are reportedly forecast to remain high in the medium term.

Denmark/UK: FLSmidth has signed a global commercial partnership with UK-based carbon capture and utilisation (CCU) Carbon8 Systems to accelerate the cement industry’s carbon neutrality path. The supplier said that CCU is an essential part of its MissionZero pledge to enable zero-emission cement production by 2030. The new partnership will use its global network to extend Carbon8 Systems’ reach in the cement industry. The partnership started in June 2021 and the companies intend to release more details on the commercialisation of the arrangement at a join webinar in October 2021.

Carsten Riisberg Lund, Cement President for FLSmidth said, “The cement industry is pursuing every possible solution to reduce its environmental footprint. CCU is one such technology, with a massive potential, that has reached commercial maturity in recent years.” He added “FLSmidth will work closely with Carbon8 Systems to accelerate the implementation of its technology and we will draw upon our in-depth know-how, our products and our global presence. This agreement is a significant leap forward in our joint efforts to deliver on the sustainability ambitions for the global cement industry.”

India: The National Green Tribunal has received a complaint from the Jaintia Students’ Union (JSU) challenging the Meghalaya Ministry of Environment, Forest and Climate Change’s approval of Star Cement’s Brishyrnot quarry expansion plans. The Sentinel newspaper has reported that the student organisation demanded the cancellation or suspension of environmental clearance for the expansion pending proper processes. It claims that the ministry failed to meet the necessary requirements for a public hearing. It allegedly did not receive no-objection confirmation from all affected local groups.

The Brishyrnot quarry currently covers 42ha in East Jaintia Hills district and has a limestone capacity of 2.5Mt/yr.

Tanzania: Tanzania Portland Cement recorded an increase in turnover of 13% year-on-year to US$170m in 2020 from US$150m in 2019. The Daily News newspaper has reported that the company’s net profit for the year was US$31.9m, up by 25% year-on-year from US$25.4m in 2019. Its sales volumes of cement grew by 6% in 2020. Chair Hakan Gurdal attributed the results to increased cement volumes, level prices and controlled cost.

Gurdal said, “We achieved new records in production, dispatching and cement sales, following a volumes strategy to offset the general price downward trend of the past 10 years.” He added that the company remains ‘deeply involved’ in large infrastructure projects and that “The trend remains strong.” In 2020, national cement demand rose to 5.9Mt

By the end of 2021, Tanzania is expected to have a cement production capacity of 11Mt/yr.