Displaying items by tag: Coal
China: China National Building Material's (CNBM) revenue fell by 16% year-on-year to US$33.4bn in 2022 from US$40.0bn in 2021. Its adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) fell by 31% to US$5.18bn from US$7.50bn. Sales from its cement and concrete business segments fell by 18% to US$16.0bn and 29% to US$5.25bn respectively. Adjusted EBITDA fell by 42% to US$2.89bn and 7% to US$470m. Its sales volumes of cement and clinker decreased by 15% to 316Mt from 373Mt. Sales volumes of concrete decreased by 24% to 84.7Mm3 from 112Mm3.
The group said that, “In 2022, the triple pressure from shrinking demand, supply shock and weakening expectations persisted, and the complexity, severity and uncertainty of the development environment increased.” With regards to the building materials segment it blamed a declining real estate market, a poor economy and general poor demand in both the peak and off seasons. It added, “The downturn in demand has further aggravated the contradiction of overcapacity in the industry, with prices running low, coupled with a sharp rise in the cost of coal and other elements leading to escalating production costs, the production and operation situation was extremely critical.” In response the company is continuing to push for supply-side reform, promote precise staggered peak production, working on stablising the market and seeking out opportunities to supply large-scale infrastructure projects.
China: Tangshang Jidong Cement’s operating income fell by 5% year-on-year to US$5.03bn in 2022 from US$5.27bn in 2021. Its net profit dropped by 52% to US198m from US$409m. Its sales volumes of cement decreased by 13% to 87Mt. It reported a cement production utilisation rate of around 49% from its total capacity of 176Mt/yr. The company blamed market overcapacity, a falling real estate market and mounting coal prices for tough trading conditions in the cement sector.
Afghanistan: Ghori Cement says that its Baghlan cement plants currently produce 600t/day of cement, corresponding to annual production of 0.22Mt/yr. The producer states that production is restricted by shortages of electricity and vehicles. With regular supply of these, it would increase its production by 33% to 800t/day (0.29Mt/yr), according to the company.
Production at the Baghlan cement plants was previously suspended for four months in mid-2022 due to high coal prices. This was resolved when the government began supplying the plants with coal at a pre-agreed price. The plants then reopened with a daily production of 520t/day (0.19Mt/yr), up by 49% from 350t/yr (0.13Mt/yr).
The provincial government said that an upgrade with equipment from China and Iran since increased production by 15% to its present 600t/day (0.22Mt/yr).
Pakistan: Dandot Cement recorded a net loss after taxation of US$463,000 during the first six months of the 2023 financial year. This corresponds to a year-on-year rise of 8% from US$429,000 in the first half of the 2022 financial year. Its finance costs rose by 10% to US$437,000, while its administrative expenses fell by 18% to US$71,400.
The producer's 0.5Mt/yr Lahore cement plant closed in 2019 for a 'balancing, modernisation and replacement' upgrade. Dandot Cement says that the on-going project is on schedule for completion before the end of the current Pakistani financial year on 30 June 2023. The company anticipates a rise in domestic cement demand due to new infrastructure projects and the renovation of existing infrastructure. However, it noted several principal risks and uncertainties, namely rising coal, diesel and electricity prices, rising interest rates, currency devaluation and current overcapacity in the Pakistani cement industry.
Dalmia Cement (Bharat), Rama Cement Industries and Shree Cement win coal mine auctions
28 February 2023India: Three cement producers placed winning bids for coal mining leases at auctions on 27 February 2023. Press Trust of India News has reported that Dalmia Cement (Bharat) and Rama Cement Industries won bidding for coal mining leases in Madhya Pradesh, while Shree Cement won a lease for mines in Chhattisgarh.
Coal supply resumes to Hetauda Cement Udyog's Hetauda cement plant
24 February 2023Nepal: Hetauda Cement Udyog has resumed operations at its Hetauda cement plant after receiving a 1600t delivery of imported coal. República News has reported that importers sourced the coal from Bhutan, India, Indonesia and Pakistan. The Hetauda cement plant had been out of operation since 10 February 2023 due to a lack of coal. The producer said that the latest delivery will last it until 11 March 2023. The producer had ordered 8000t of coal.
Indian coal prices decline in December 2022
24 February 2023India: The price of imported coal ended December 2022 at US$145/t. The figure represented a 15% month-on-month drop from November 2022 levels. HT Media News has reported that the price is the lowest since the Russian invasion of Ukraine in February 2022.
Finance company IDBI Capital has forecast that earnings before interest, taxation and amortisation (EBITA) per tonne of cement by local cement producers will rise by US$2.66/t quarter on quarter during the fourth quarter of the 2023 financial year, which will end on 31 March 2023. This is partly due to an anticipated 10% year-on-year decline in coal and petcoke costs during the period, alongside a 10% rise in cement volumes projected over the same period.
Uzbek cement plants to transition to coal as fuel
21 February 2023Uzbekistan: The government has ordered a partial transition of industries, including cement, to coal fuel from natural gas. The Turan Information Agency has reported that the ordinance, entitled Accelerating the Introduction of Renewable Energy Sources and Energy-Saving Technologies, will create an additional coal demand of 1.63Mt/yr and reduce national gas consumption by 926Mm2/yr. From 1 April 2023, the government will halve tariffs on coal imports, while the construction of new gas pipes to industrial facilities will be banned from 1 May 2023.
Republic Cement and Ecoloop seek new waste management partners
30 January 2023Philippines: CRH subsidiary Republic Cement and its waste management subsidiary Ecoloop are seeking to establish partnerships with 'sustainability-minded' organisations. BusinessWorld News has reported that Republic Cement and Ecoloop process waste for 12 private companies and 30 local government units. Philippines law will require that large organisations recover 80% of their plastic packaging waste by 2030. For 2023, the minimum is 2023.
Ecoloop managing director Angela Edralin-Valencia said “Our goal is to make our cement a greener and more environmentally friendly product. Our ambition is to replace 50% of our fuel consumption with alternative fuel (AF)." She added "A lot of investments have to be put in place from our end to get to that number, but we are still reviewing our options.”
Power Cement secures coal supply for Nooriabad cement plant
26 January 2023Pakistan: Power Cement has awarded a coal supply contract to Sindh Engro Coal Mining Company (SECMC) on a trial basis. The Dawn newspaper has reported that SECM's locally sourced coal may subsequently replace imported coal in cement production at Power Cement's Nooriabad cement plant in Sindh.
SECMC produces 3.8Mt/yr of coal from the Thar coalfield. It has an extraction capacity of 7.6Mt/yr, which it plans to increase by 61% to 12.2Mt/yr with a new expansion phase by June 2023. SECMC said that this will lower the price of its coal by 36% to US$27/t from US$42/t. Currently, only Afghanistan is exporting coal to Pakistan, at a price of US$166/t.
Thar coal has a relatively low heating value, including by comparison to Pakistani coal from the western provinces of Balochistan and Khyber Pakhtunkhwa.