Displaying items by tag: Import
US: The Boston Globe newspaper has reported that the single biggest threat to the US government’s planned industrial reinvigoration based around a US$2.2tn federal infrastructure spending plan is a shortage of resources. The newspaper named a lack of workers and cement mills as particular concerns. It reported that the National Association of Home Builders has called for tariffs to be cut for certain key building materials such as lumber and that more cement should be imported.
European Commission to introduce carbon border adjustment mechanism for cement imports from 2023
07 June 2021EU: The European Commission is reportedly planning to introduce its carbon border adjustment mechanism (CBAM) for cement imports from 2023. Reporting by Bloomberg has revealed that a ‘simplified’ system could be used in a transition period from 2023 with the full mechanism due to start in 2026. Under the new system, cement importers would have to buy certificates at a price linked to the European Union (EU) emissions trading system (ETS). Details on the CBAM and wider environmental plans are due to be made public in mid-July 2021. However, full legal acceptance of the scheme will require approval by the European Parliament and member states.
In a previous response to a report on the CBAM in February 2021, Koen Coppenholle, the head of the European Cement Association (Cembureau), said that a CBAM was a useful tool to address the imports of products not subject to similar carbon constraints in the European Union. He added, “The Environment Committee’s report highlights some key points in this respect, notably that a CBAM should result in EU and non-EU suppliers competing on the same CO2 costs basis; that the scope of CBAM should be wide to avoid market distortions, and that both direct and indirect emissions should be included.”
In May 2021 the EU ETS reached a price of Euro50/t following a significant rise from late 2020 onwards.
Armenia: The Armenian parliament has agreed to establish a customs duty of Euro22/t for cement and Euro3/t for clinker on imports from Iran and other countries. The government had initially hoped to imposed Euro39/t and Euro14/t on cement and clinker respectively but this was declined by the legislative body, according to the ArmInfo News Agency. Imported cement will also be recognised as licensed. The new bill will come into effect in July 2021.
A previous customs duty of Euro22/t imports of Iranian cement was set up in mid-2019. However, Iranian cement imports were then banned at the start of 2021. Production by local producers grew in 2020 and imports fell.
Nepal forecast to require 26Mt/yr by 2024 - 2025
24 May 2021Nepal: A report by the Nepal Rastra Bank has estimated that Nepal will require 26Mt/yr of cement by the 2024 – 25 financial year due to large-scale infrastructure projects. However, current production before the coronavirus pandemic was around 7.5Mt/yr despite the country’s production capacity of 15Mt/yr, according to the Kathmandu Post newspaper. Domestic consumption is 9Mt with around 1.5Mt of demand supplied from imports, mainly from India. The report added that most of the large projects in Nepal used cement imported from India due to issues with certification, consistent quality and the inability of local producers to offer bulk supply. In 2019 the Ministry of Industry, Commerce and Supplies forecast that the country’s cement production capacity could increase to 20Mt/yr by the end of the 2023 – 24 year.
Dhruba Raj Thapa, president of the Cement Manufacturers Association of Nepal, said that the data in the report by the bank contained errors. He pointed out that the country has a cement production capacity of 22Mt/yr and that it is already self-sufficient in the commodity. He also refuted the claims that infrastructure projects prefer imported cement.
Bangladesh: Cement producers are warning of price rises due to a ‘significant’ rise in international freight rates. The Bangladesh Cement Manufacturers Association (BCMA) has expressed concern about the situation, according to the New Nation newspaper. Freight rates to transport clinker from Indonesia, Vietnam or the Middle-East have increased by up to 30% in the last few months. The BCMA has called on the government to cut import duties to keep consumer prices low.
Philippines: The Philippine cement industry has met some of its investment commitments set out in the Department of Trade and Industry (DTI)’s adjustment plans for its imposition of safeguard measures against imported cement. The Manila Bulletin newspaper has reported that producers have invested around US$250m in making their product more competitive for local buyers although the industry has deferred US$1.54bn-worth of further agreed-upon spending to before 2025. The Tariff Commission (TC) said that companies’ reasons for delaying the completion of their adjustment commitments were Covid-19-led disruptions to production, transport and services. The DTI set out the commitments in the form of 20 plans, of which the industry has now fully implemented 12. The TC said that the sector is ‘determined’ to meet the remaining goals. It added that the damaging impacts of the coronavirus outbreak were lessened by the previous implementation of tariffs, which rose to US$0.20/bag in December 2020. The commission said "To date, it can be concluded that the intervention was timely and proper, as it has provided breathing space for the domestic industry and has mainly contributed to increasing the industry's market competitiveness."
Dzata Cement bagging plant to open in mid-2021
12 May 2021Ghana: Dzata Cement, a 1.2Mt/yr bagging plant based in Tema, plans to start commercial production by June 2021. The unit cost US$100m and includes a two line bagging and packaging equipment supplied by Germany-based Haver & Boecker, according to the Ghana News Agency. It will use imported cement. Proposed later phases at the site will see an upgrade in bagging operations to 2.4Mt/yr and the eventual installation of two 3Mt/yr vertical roller mills. As a safeguard against surges of cement imports the government has also introduced new export and import legislation requiring licenses for imports from outside the Economic Community of West African States (ECOWAS) region.
The plant’s founder Ibrahim Mahama is the brother of former Ghanian president John Dramani Mahama. In November 2020 the Ghana News Agency reported that Kofi Amoabeng, the former chief executive officer of UT Bank, said that loans made to companies including Dzata Cement had contributed to the bank being declared insolvent in 2017.
Polish Cement Association predicts fall in cement sales in 2021 and reviews challenges of carbon neutrality
07 May 2021Poland: The Polish Cement Association (SPC) has forecast a 2% year-on-year drop in cement sales to 18.5Mt in 2021. President Krzysztof Kieres attributed the fall to growing imports and reduced construction due to a cold start to the year. He predicts that sales will rise again, by 4% to 19.3Mt, in 2022.
The SPC has warned that the industry faces large costs in meeting the European Green Deal’s required 40% CO2 emissions reduction by 2030 and achieving carbon neutrality by 2050. In particular, the local industry noted that the rising European Union (EU) CO2 price has caused a direct increase in electricity prices. It has called on the government and the EU to compensate it for this rise.
Imports of cement also present a key challenge. In 2020, imports of Belarusian cement increased by 80% to 440,000t and imports of Ukrainian cement increased by 50% to 32,000t. The association expressed strong support for the European Carbon Border Adjustment Mechanism (CBAM) as a means of protecting the industry against imports both from neighbouring countries outside the EU and via polluting shipping from cement exporters further afield such as Turkey.
Kazakhstan: The Technical Regulation and Metrology Committee (KTRM) of the Ministry of Trade and Integration is preparing to introduce new standards for imported cement. The new rules will come into place in July 2021, according to the Kazakhstan News Agency. Following their introduction all participants in the cement industry market, including importers, will be required to perform compulsory qualification confirmation in accordance with the national standards. The KTRM has also started setting up a testing laboratory with a site granted accreditation in late April 2021. The Ministry of Integration and Integration and the Kazakhstan Cement and Concrete Manufacturers Association (QazCem) have also held a meeting recently to discuss key industry concerns and the measures required to combat the spread of counterfeit cement products.
Republic Cement expects strong growth in the Philippines
30 April 2021Philippines: Republic Cement has said that it expects the cement sector in the Philippines to grow strongly in 2021 following a 10% decline in demand in 2020. Speaking to local press, the company’s president and chief executive officer Nabil Francis said that the drop in demand in 2020 was actually less severe than the expected 15%. He added, “We strongly believe that we will get back to 2019 level in 2021. That means 12% growth compared to 2020.” Francis added that the industry is expected to sell 35Mt of cement during 2021. The main driver is the bagged cement segment, with infrastructure and the non-residential, likely to grow less rapidly.
Francis additionally said that he welcomed the Department of Trade and Industry’s investigation into alleged dumping of cement into the Philippines from Vietnam. He said that the imported cement is sold at very low prices, its production having been subsidised by the Vietnamese government. He said the influx of imported cement has injured the local industry.