01 December 2014
Gas prices hiked for cement producers in Oman 01 December 2014
Oman: The Ministry of Oil and Gas (MOG) plans to increase the price of natural gas for Raysut Cement Oman Cement from 1 January 2015. Raysut Cement said that the decision would impact its production by 3% in 2015. The company plans to mitigate the financial impact by implementing cost-reduction enhancement initiatives and restructuring prices. Oman Cement said that it plans to minimise the impact by improved productivity cost-controls and restructured pricing.
Holcim gets final compensation for Venezuelan nationalisation 01 December 2014
Venezuela: Holcim has received the last compensation instalment of US$97.5m in connection with the nationalization of Holcim Venezuela in 2008. The Corporacion Socialista Del Cemento, which is operating the former Holcim plant, has transferred the remaining amount, which was due on 10 September 2014. The agreed total compensation amount for nationalisation of Holcim Venezuela was US$650m.
China orders some north-east cement plants to shut in winter 01 December 2014
China: China has ordered several cement plants located in the northern provinces to shut for four months, starting on 1 December 2014, to reduce over-capacity and curb air pollution during the winter months, according to state news agency Xinhua.
The move, which will affect 103 production lines in the three Provinces of Heilongjiang, Liaoning and Jilin, is set to hit coal consumption and limit a rebound in domestic prices.
The China Cement Association and the three provincial governments jointly issued the order. Persistent over-capacity has dogged the sector for years, with northern China using only about half of its total production capacity.
The northern provinces, including Hebei, are a major source of industrial pollutants blamed for a toxic smog that often spreads to neighbouring regions like Beijing. Kong Xiangzhong, vice president of the China Cement Association, was quoted as saying the winter stoppage would greatly curb air pollution, as fuel consumption increases markedly when temperatures drop. Total cement output in northern China, including Inner Mongolia, hovers around 120Mt in the winter months and requires about 20Mt of coal. Fuel consumption falls to just 16Mt in summer, according to Xiangzhong.
The suspension in Xinjiang is expected to reduce coal consumption by about 1Mt and help increase plant utilisation rates to 75%, from the current 60%, according to local media reports. It takes about 200kg of coal to produce 1t of cement, according to the World Coal Association.
Despite efforts to cut output, China's cement production rose 9.6% to 2.41Bnt in 2013 from a year earlier, while total capacity has surged to more than 3.2Bnt/yr, according to data from the cement association.