Displaying items by tag: Indonesian Cement Association
Indonesia: Semen Indonesia’s cement sales volumes rose by 1.2% year-on-year to 12.4Mt in the first half of 2016 compared to the same period in 2015. Local sales rose by 1.6% to 12.2Mt but export volumes fell sharply by 20.1% to 0.19Mt. The decline in export sales was attributed to the Indarung cement plant in Padang province.
Cement consumption for the country as a whole rose by 3.1% to 29.5Mt for the first half of 2016, according to Indonesian Cement Association data. Increases in consumption were noted in most regions, with the exception of Kalimantan, where consumption fell by 16% to 2Mt. Notable increases in consumptions were recorded in Sulawesi, Maluku and West Papua. Overall exports of cement fell by 19.3% to 0.21Mt but clinker exports rose by 380% to 0.42Mt in the period.
Indonesia cement sales continue to fall
12 August 2015Indonesia: Cement sales for the first seven months of 2015 have continued to decrease. Weak demand, in addition to the Eid al-Fitr holiday period, caused national cement sales for July 2015 to fall by 4.2% year-on-year to 31.3Mt.
Regions with the largest cement consumption drop for July 2015 were Bali and Nusa Tenggara, which saw a 26.5% drop to to 214,540t, Kalimantan with a drop of 23.6% to 208,939t, Java with a 13.9% decrease to 1.79Mt and Sumatra with a drop of 3.3% to 726,000t.
Widodo Santoso, chairperson of the Indonesian Cement Association, is optimistic that cement sales and consumption will increase in the second half of 2015 as the government starts actualising its budget to boost the infrastructure sector. Santoso said that the cement industry would gain 11Mt/yr of additional production capacity from the operation of four new plants from Semen Bosowa, Holcim Indonesia, Semen Merah Putih, Semen Jawa and Semen Conch. The additional cement supply and weakening of cement demand may cause oversupply in the cement industry and create higher competition.
Meanwhile, Semen Indonesia has revised its domestic cement sales growth target to 0% from the initial target of 5%, in line with weak demand in the cement market in the first half of 2015. Agung Wiharto, corporate secretary of Semen Indonesia, said that unsupportive macroeconomic conditions, depreciation of the Indonesian Rupiah and the weakening of commodity prices affected the company's sales for the first semester. Its sales volume for the first half of 2015 decreased by 4.2% year-on-year.
"Semen Indonesia's sales volume in several regions was affected by tight competition with new players and new plants," said Wiharto. He added that he expects the domestic cement market to improve in the third quarter of 2015, in line with actual infrastructure developments to boost cement demand in the private and retail sectors. "Cement sales are expected to again grow by 6 - 8% in 2016 if infrastructure developments continue." Semen Indonesia plans to resume several cement plant expansion projects in Rembang and Padang to meet cement demand growth in the future. The plants in Rembang and Padang will each have capacities of 3Mt/yr.
Cement sales extend declines in May 2015
15 June 2015Indonesia: Cement consumption fell by nearly 4% year-on-year during the first five months of 2015, the biggest decline in the January - May period in the last six years. The fall has been blamed on the country's slowing economy.
Data released by the Indonesian Cement Association show that cement demand in January - May 2015 fell by 3.8% year-on-year to 22.9Mt. It was the steepest drop so far in 2015. Consumption has declined consistently since February 2015. It was also the biggest drop recorded since 2009, when domestic demand fell by nearly 7% year-on-year due.
Indonesia's economy grew by 4.7% in the first quarter of 2015, the slowest in six years and since the start of the global financial crisis. Cement consumption has been a parameter in emerging markets' economic growth. "Cement demand has not fully recovered yet due to slower economic growth, relatively high interest rates, changes in property regulations and bleak commodity exports, which hampered property demand and consequently reduced cement consumption," said Marwan Halim from the stockbroking arm of United Overseas Bank Ltd, UOB KayHian, in a report. Bank Indonesia has maintained its interest rate at 7.5% to curb inflation and maintain its currency, while mortgage regulation and a lower price threshold for property products subject to 20% income have contributed to constraining the property industry.
Cement consumption in May 2015 fell by 7.9% year-on-year, much steeper than the 1.1% decline recorded in April 2015. It was the biggest May drop recorded since May 2009. Lower sales in May 2015 occurred in almost every part of the country, although East Nusa Tenggara and West Nusa Tenggara Provinces saw monthly sales rise by nearly 50% year-on-year. Commodity-based provinces experienced the highest declines during the month, with South Kalimantan and East Kalimantan making the steepest plunges with 41% and 24%, respectively. Even West Java, which traditionally has one of the highest cement consumption rates in Indonesia, suffered a sales decline of 8.3% year-on-year in May 2015.
Indonesian Cement Association warns on imports
12 March 2014Indonesia: The Indonesian Cement Association (ASI) has warned that imported cement from Thailand and Vietnam is damaging the fortunes of local cement producers. ASI chairman Widodo Santoso predicted that demand for Indonesian-made cement in eastern Indonesia fell by 29.5% year-on-year to 93,000t in the first quarter of 2014. He blamed the 'drastic' fall of demand from Nusa Tenggara and Papua on imported cement.
National demand for cement in Indonesia grew by 1.6% year-on-year in February 2014 with cement sales at 4.47Mt. Cement demand in Java, the country's largest provincial consumer, rose by 3.4% year-on-year in February 2014.
In December 2013 the Indonesian Trade Ministry issued the Trade Minister Regulation No.40/2013 on the Import of Cement Clinker and Cement, which required cement importers to have a registered license prior to receiving imports approval. According to Widodo, imports would be prioritised for cement producers who build new cement plants. Other reasons for the country's lower increase in cement demand have been attributed to excessive rain, the eruption of Mount Kelud and preparations for elections.
The ASI estimates that cement sales in 2014 will reach 62Mt/yr, an increase of 5 - 6% over 2013. Exports are predicted to reach 1.5 - 2.0Mt/yr.
Holcim Indonesia sales down by 2% to 8.43Mt in 2013
22 January 2014Indonesia: Holcim Indonesia has reported that its sales volumes fell by 2% year-on-year to 8.43Mt in 2013 from 8.58Mt in 2012, according to the Indonesian Cement Association (ASI). Its sales accounted for 14.5% of the domestic market share.
Indonesian cement sales growth slows in H1
17 July 2013Indonesia: Indonesian cement sales growth has fallen to 7.5% at 27.8Mt for the first six months of 2013 from 25.9Mt in the same period in 2012, according to the Indonesian Cement Association (ASI). Year-on-year sales grew by 15% for the January to June period between 2011 and 2012. The deceleration in cement sales is expected to continue in the second half of 2013 due to a reduction in infrastructure development.
Reasons for slower national growth in the first half of 2013 include fewer infrastructure projects, falling commodity prices that have affected development in resource-rich provinces and more frequent rain, according to ASI chairman Widodo Santoso. Sales in Java, the main driver of growth in the first months of 2013, rose by 9.2% to 15.5Mt. Meanwhile, sales outside Java rose by 5.38% to 12.4Mt.
State-owned cement producer PT Semen Indonesia said that the 7.5% growth in nationwide cement sales was still higher than sales growth before 2011. Figures from the ASI showed domestic cement sales rose 14.5% in 2012, 17.7% in 2011, 6% in 2010 and only 0.9% in 2009.
Semen Indonesia to build US$200m plant in Myanmar
27 March 2013Myanmar: Indonesia's largest cement producer PT Semen Indonesia, formerly Semen Gresik, has announced that it will build a US$200m cement plant in Myanmar early in 2014 as part of its expansion into the Southeast Asian market.
The company may pitch about US$70m for the plant, which it would set up with its Myanmar partners, as it aimed to control about a 40% stake in the planned joint venture, said president director Dwi Soetjipto in a press event reported by the Jakarta Post. The construction of the cement plant, designated with a capacity of 1Mt/yr, is scheduled to start in early 2014, while operations are expected to begin in 2017. Based on the firm's plan, the new plant will serve the Myanmar market and neighbouring countries like Thailand and Bangladesh.
The move by Semen Indonesia follows its acquisition of Vietnam's largest cement producer, Thang Long Cement Joint Stock Company, in late 2012. It now aims to expand its annual capacity to 6.5Mt/yr from 2.3Mt/yr by establishing two new plants. At home in Indonesia, Semen Indonesia is also preparing for capacity upgrades with the construction of cement plants in Rembang, Central Java and Padang, West Sumatra, both with production capacities of over 2.5Mt/yr.
In 2013 the firm has targeted a domestic market share of up to 44%, up from 41% in 2012, supported by increased output to around 27Mt from 22.6Mt in 2012, according to Dwi. The overall domestic cement market is estimated to increase by more than 10% to 6Mt in 2013, according to the Indonesian Cement Association.
Indonesia domestic cement sales grow by 17% in 2011
11 January 2012Indonesia: Indonesia's domestic cement sales grew by 17% in 2011 on the back of new property construction, according to Indonesia's cement association (ASI). Total domestic cement sales in 2011 reached 48Mt, with more than half the sales in the main Java island, data from the association showed.
"Indonesia had large physical development during 2011 and the result followed strong economic growth figures. We also saw a huge decline in exports, which means domestic suppliers prioritised the domestic market," said ASI chairman Urip Trimuryono.
Total cement exports fell by 59% to 1.2Mt from 2.9Mt in 2010. The country's cement sales fluctuate month-to-month depending on factors such as holidays and the government's end-of-year project completion deadlines. Sales volumes in December 2011 rose by 17% from the same month in 2010 to 4.6Mt. The association has forecast cement sales growth by 6% in 2012.
"We believe the 2012 outlook for cement remains promising, supported by the land-clearing law and continued strong property demand on the back of a continued low interest rate environment," said Teguh Hartanto, an analyst at Jakarta-based Bahana Securities.
Indonesia's parliament stamped a long-awaited land acquisition bill in December 2011, an attempt to break the bottleneck in infrastructure development that has long been seen as holding back growth in the country.
Cement markets remain strong in Indonesia
19 December 2011Indonesia: Domestic cement sales in Indonesia, the largest economy in south east Asia, rose by 26% in November 2011 from the same month in 2010, according to data released by the Indonesian cement association (ASI).
Sales volume reached 4.4Mt, compared to 3.5Mt in November 2010. Despite this, sales were down by 4.7% compared to October 2011, which saw 4.7Mt of cement sold. It should be noted that end of year deadlines for completion of government construction projects traditionally inflate November figures compared to those for December.
The ASI estimates that total domestic sales will reach around 45-46Mt in 2011, up by 15% from 2010, according to its chairman Urip Trimuryono.
In the longer term it is likely that cement demand growth will be more rapid in the country, with Indonesia's parliament stamping a long-awaited land acquisition bill on 16 December 2011. The bill will attempt to remove a bottleneck in infrastructure development that has long been seen as holding back growth in the country, providing a greater demand for cement.
HeidelbergCement to invest USD500m in Indonesia
19 October 2011Indonesia: HeidelbergCement plans to invest USD500m in a plant on Indonesia's Java island, Indonesia's trade minister Gita Wirjawan announced on 19 October 2011.
Indonesia's cement sales, an indicator of economic growth in Southeast Asia's largest economy, rose 52% in September 2011 year-on-year due to increasing property and infrastructure building.
Cement sales volumes reached 3.8Mt, from 2.5Mt in September 2010 according to Urip Trimuryono, chairman of the Indonesian Cement Association. Sales in August 2011 had dipped 0.3% year-on-year, due to slower activity during the Ramadan and Eid al-Fitr holiday. Trimuryono forecast full year 2011 cement sales would grow 14%, with growth moderating next year to 10%.