Displaying items by tag: Export
Iran expects to make 120Mt/yr by 2025
17 November 2014Iran: Iran has exported over 11.79Mt of cement and clinker during the first seven months of the current Iranian fiscal year, a period spanning 21 March 2014 to 22 October 2014. The Secretary of Iran's Cement Industry Employers Association, Abdolreza Sheikhan said that 8.1Mt of cement and 3.6Mt of clinker was exported.
Sheikhan added that around 32.5Mt of the country's total cement output was distributed in domestic markets during the first six months of the current fiscal year. Iran produced 41.6Mt of cement in the first seven months of the Iranian fiscal year. It exported over 20Mt of cement during the previous fiscal year.
Iran's Industry, Mines and Trade Minister Mohammad Reza Nematzadeh has forecast that the country's cement export will hit 120Mt/yr by 2025.
Pakistan’s sales affected by smuggling from Iran
08 October 2014Pakistan: During the first quarter of the current fiscal year, which began on 1 July 2014, the Pakistani cement industry posted growth of 9.9% in local sales compared with sales during the first quarter of previous fiscal year. However, exports declined by 8.1% compared with exports during the year-earlier quarter. Overall growth was 4.9% year-on-year for the quarter.
Cement despatches to domestic markets during the month of September 2014 were 2.42Mt, compared with 2.12Mt during September 2013, an increase of 13.9%. Exports during September 2014 were 0.73Mt against 0.82Mt during September 2013, a decline of 10.6%. Total despatches during September 2014 were 3.15Mt compared to 2.94Mt during the same month of 2013, an increase of 7.1%.
Officials said that Pakistan's cement industry is already facing a lot of issues due to high duty/tax structures, impractical imposition of sales taxes, increasing coal import duties, increasing power tariffs and axel load restrictions for haulage trucks that limit load capacities. Now they claim that it is also facing smuggling from Iran.
Domestic cement uptake in the south of the country is being seriously affected due to the influx of Iranian cement. Statistics showed that, against a 10.8% increase in domestic sales in the north during the first quarter of the current fiscal year, the domestic sales in the south showed an increase of only 5.4%.
A spokesman from the All Pakistan Cement Manufacturer's Association (APCMA) pointed out that despatches in the south should have been higher because the exports from this region during the first quarter of the current fiscal year increased by 12.2% to 0.78Mt against 0.70Mt during same period in 2013. On the contrary, exports from the north of Pakistan declined by 17.3% to 1.28Mt during the first quarter against 1.56Mt during same period last year.
The spokesman said that such lopsided sales are 'puzzling' at a time when the economic activities in the south have picked up appreciably. He said that a deep analysis of the situation revealed that the consumption has most probably increased at par or higher than the northern region but that Iranian cement smuggled without paying the duties and sales tax has penetrated the southern market, which is close to the Iranian border.
Iraq has agreed to increase the volume of Iran's cement exports
15 September 2014Iran: As of 1 September 2014, each Iranian cement company can export 15,000t/yr cement into Iraq from the Shalamcheh, Chazzabeh and Mehran border terminals, according to Jahanbakhsh Sanjabi Shirazi, the head of Iran-Iraq Joint Chamber of Commerce. He noted that the new regulations have been adopted by Iraq's Trade Ministry.
Iran exports 8 – 10Mt/yr of cement to Iraq, supplying almost half of Iraq's total cement consumption. Iraq consumes 19Mt/yr of cement. Iran exported over 8Mt of cement to Iraq between 21 March 2014 and 21 August 2014.
Iran currently exports cement to 24 countries, including Azerbaijan, Turkmenistan, Afghanistan, Russia, Kazakhstan, Kuwait, Pakistan, Qatar, Turkey, Georgia, Oman, India and China. Iran has successfully started to use railroads to export cement to neighbouring and Central Asian countries. The main importers of Iranian cement are Iraq (63%), Azerbaijan (4%) and Turkmenistan (7%).
Is capacity reduction the next step in Vietnam?
10 September 2014There were two telling stories from Vietnam this week that show the level to which demand has been overestimated in the centrally-planned cement sector. Firstly, the country reported that exports in the period between January and July 2014 increased by nearly a quarter year-on-year to 13.1Mt. Secondly, the Prime Minister announced that another five cement plant projects were to be axed, following nine others that bit the dust in 2013.
All this is against a backdrop of chronic lower-than-expected domestic cement demand. When we look at the figures, it’s not hard to see that domestic consumers have had trouble consuming all the cement produced in Vietnam. The government forecast for cement production in 2015 is in the region of 75 - 76Mt. If this was spread evenly between Vietnam’s 88.8m people, each person would have to consume ~850kg of cement. That’s possible but it is quite a lot for a lower middle income economy. However, separate reports state that a 10% rise in domestic sales on 2013 levels would lead to just 60Mt of domestic cement sales in 2015. This equates to a more realistic 675kg/capita.
These figures leave a massive and increasing amount of cement for export. Read again that figure from the first seven months of 2014 – 13.1Mt – Roughly the capacity of South Africa (~12.5Mt/yr), Tunisia (12.9Mt/yr) of Colombia (12.9Mt/yr)! Also, while cement exports volumes were up by nearly a quarter, the value of those same exports rose by only 20%. This indicates a drop in export prices and represents additional pressure to halt capacity expansion.
Against a backdrop of 90Mt/yr expected capacity in 2015 and falling export prices, the latest cement project cull certainly makes sense but even in a best-case scenario the country is looking at a capacity utilisation rate of just 66 - 67%. Some cement plant project owners have even found themselves trapped by the situation. Having indebted themselves on the promise of ever-increasing cement demand, they now face the prospect of throwing good money after bad, continuing to build and operate just to service debts. This is a very unenviable position indeed. The lifting of trade restrictions within the ASEAN Community on 1 January 2015 might help export volumes, but might also also drive prices down further.
Culling new cement plant projects is one thing, but could the next step be more drastic? North of the border, China is gradually reducing its overcapacity by removing older and less efficient capacity. Perhaps Vietnam would do well to follow suit.
Vietnam cement exports rise in first seven months
04 September 2014Vietnam: In the first seven months of 2014, Vietnam earned US$563m from the export of 13.1Mt of clinker and cement, a 24% rise year-on-year in value terms and a 20.4% increase in terms of volume. Indonesia, Taiwan and Malaysia were the largest importers of Vietnamese clinker and cement in this period, according to the Vietnamese Ministry of Industry and Trade.
Indonesia imported 1.42Mt of clinker and cement (worth US$69m), Taiwan bought 0.86Mt (US$37.6m) and Malaysia purchased 0.7Mt (US$34.7m). Cambodia was fourth with 0.29Mt (US$15.6m).
Vietnam's domestic cement sales are expected to rise by 9% year-on-year to between 49 - 50Mt in 2014, while cement and clinker exports are likely to hit 16 - 20Mt. The country exported 15Mt in 2013.
Iran cement exports in doubt to Tajikistan and Iraq
27 August 2014Iran: Iran stopped exporting cement to Tajikistan in June 2014 and its cement exports to Iraq are 'ambiguous', according to Ebrahim Gholamzadeh, managing director of Iran's Lamerd Cement Company. Gholamzadeh, who had his comments reported by Iranian media, added that no official has followed up the issue and that there is no organized management in exports of cement to Iraq.
Iran exported around 18Mt/yr of cement in the previous Iranian calendar year, which ended on 20 March 2014. In the past Iranian year, Iran exported cement to 24 countries, including Iraq, Azerbaijan, Turkmenistan, Afghanistan, Russia, Kazakhstan, Kuwait, Pakistan, Qatar, Turkey, the United Arab Emirates, Georgia, Oman, India and China.
Pakistan cement sales fall at start of new fiscal year
22 August 2014Pakistan: After posting cement dispatches of 3Mt/month between March and June 2014, Pakistan's cement dispatches were down to just 2.23Mt in July 2014. This compared unfavourably to dispatches of 2.6Mt in July 2013. Domestic dispatches of 1.75Mt were down by 6.5% year-on-year compared to July 2013. Cement exports dropped by a third from 0.75Mt in July 2013 to 0.5Mt in July 2014.
The poorer export performance was mainly attributed to a reduction in quantities sold to Afghanistan where against exports of 0.44Mt in July 2013 were reduced to just 0.18Mt in July 2014. According to industry experts, this trend is likely to continue in the coming months as NATO forces prepare to leave Afghanistan. The massive decline, over 58%, also indicates declining competitiveness of Paksistani cement in the global market where other regional players like Iran are making inroads.
Iranian cement exports rise significantly
20 August 2014Iran: Iran exported approximately 6.62Mt of cement and clinker in the first four months of the current Iranian year, a period that encompasses the period from 21 March 2014 to 22 July 2014. The Iranian Ministry of Industries, Mines and Trade added that the country's cement and clinker exports rose by over 378% in the 12 months to 20 March 2014 compared to the 12 months to 20 March 2013.
Oman: Raysut Cement has warned that the large volume of cement from the UAE to Oman is creating 'undue competition' in the local market. It has reacted to this by maintaining sales locally, increasing its profit and increasing its own exports in Yemen and Africa. The company made the announcement as part of its half-year results for 2014.
The group reported revenues of US$129m for the first half of 2014, no change in comparison to the same period in 2013. Profit before tax rose by 6.7% year-on-year to US$45m.
The group sold 1.3Mt of cement and 17,400t of clinker in the first half a 2014, a decrease of 3% year-on-year compared to total sales of cement and clinker. In the first half of 2013 the group sold 1.32Mt of cement and 27,900t of clinker. The group attributed the decline to 'severe' competition from UAE suppliers in the north of Oman. It compensated for this with increased sales in the south of the country and larger export volumes.
The Oman-based cement producer also announced new projects it is working on, including setting up a distribution terminal in Duqm, additional silo capacity at the Salalah plant and an off-shore wheel loader system to facilitate bulk cement handling.
Vissai Ninh Binh Group to export 1.5Mt of clinker to Réunion
11 August 2014Vietnam: Vissai Ninh Binh Group has signed a contract with a French partner to export 1.5Mt of clinker to Ciment de Bourbon to serve to expressway road project on the French island of Réunion. This is the biggest contract that Vietnamese cement producers have secured to date, said Vissai Ninh Binh Group's deputy director Nguyen Tien Dat.
The clinker will be shipped at a price of US$42/t under the contract that will be effective for five years, the deputy director said. He noted that the firm has carefully considered the prices to avoid the negative impact driven by the fluctuations in prices of transportation.