Displaying items by tag: Outlook
India: Ratings agency ICRA says that the cement industry in India will reach a renewable energy reliance of 40% across its operations in the 2025 financial year. The Hitavada newspaper has reported that this will involve the construction of 537MW-worth of new renewable power capacity. During the 2023 financial year, which ended on 31 March 2023, producers used 35% renewable energy. ICRA said that they can expect to make costs savings of US$240m/yr from 2025 through the scale-up of renewables, including solar, wind and waste heat recovery. This would correspond to a 15 – 18% reduction of estimated energy costs for the 2025 financial year.
Over the same two-year period, ICRA forecast blended cements to rise to 81% of cement sales in the 2025 financial year, from 78% in the 2023 financial year.
Hoffmann Green Cement Technologies raises revenues and volumes in first half of 2023
18 September 2023France: Hoffmann Green Cement Technologies reported revenues of Euro1.68m during the first half of 2023, more than triple those recorded in the first half of 2022 (Euro544,000). The producer’s sales volumes of its clinkerless cement also more than tripled, to 7340t. It says it is on course to achieve its full-year 2023 target of 24,000t. The commissioning of its H2 plant in France raised the company’s installed production capacity by 250,000t.
Co-founders Julien Blanchard and David Hoffmann said "Thanks to the daily work of all our teams, we are accelerating the marketing of our innovative clinker-free cement in a construction market with demand for truly carbon-free solutions. Considering the seasonality of our sales, we intend to intensify the transformation of our order book into sales during the second half of 2023.”
New transport workers’ strike hits South Korean railways
14 September 2023South Korea: The Korean Railway Workers’ Union called a four-day strike of its 13,000 members across South Korea on 14 September 2023. Reuters has reported that the union is seeking higher pay, improved working conditions and the expansion of bullet train services into South Seoul. The Ministry of Transport predicts that total cargo haulage will drop by 53 - 79%. The Korean Cement Association (KCA) said that a protracted strike would disrupt cement production. The industry is 40% reliant on rail transport.
A representative from a KCA member said “We have secured some inventory in preparation for the strike, but it's not a lot. If the strike lengthens, we will have to convert to land transport, which will drive up costs and hit profitability."
Malayan Cement’s sales rise in 2023 financial year
25 August 2023Malaysia: Malayan Cement recorded consolidated sales of US$808m during the 2023 financial year, up by 39% year-on-year from US$583m in the previous financial year. Its net profit was US$34.2m, up by 90% from US$18m. The company partly attributed its sales growth to its incorporation of YTL Cement, which took place in the 2022 financial year on 21 September 2021. It also increased its cement sales volumes and prices.
Looking to the current, 2024 financial year, Malayan Cement said “Non-residential construction activities are expected to benefit from higher investments in manufacturing facilities, given the shift in global supply chains. Nonetheless, the group's optimism is tempered with caution, as inflation and higher interest rates may have a knock-on effect on cement demand.” It added “Our ability to deliver seamless solutions to customers will be optimised, boding well for the positive growth and outlook of the group and the industry going forward.”
Boral’s revenues rise in 2023 financial year
11 August 2023Australia: Boral’s sales were US$2.28bn in the 2023 financial year, which ended on 30 June 2023. This corresponds to a 38% year-on-year rise from the previous first half. The group’s net profit dropped by 1.3% to US$96.6m. It noted a rise in its costs of energy, labour and transport, which it expects to continue up to the end of June 2024, and possibly on throughout the second half of 2024.
The Sydney Morning Herald newspaper has reported that Australian residential construction activity dropped by 7.7% month-on-month in June 2023. Boral CEO Vik Bansal said that the company expects residential, commercial and civil construction to return to growth in the 2024 financial year.
Tajikistan exports 538,000t of cement in first half of 2023
10 August 2023Tajikistan: Cement producers exported 538,000t of cement during the first half of 2023, down by 20% year-on-year from 676,000t during the first quarter of 2022. Uzbekistan received 342,000t (64%) of Tajikistan's cement exports, while Afghanistan received 194,000t (36%). The Tajik government banned cement exports for five days in July 2023, due to a domestic cement shortage that affected important infrastructure projects. Asia-PLUS News has reported that the government now expects producers to export 1.5Mt of cement throughout 2023. The Tajikistan cement industry is expected to produce 4.5Mt of cement in 2023, corresponding to a capacity utilisation of 80% across its 5.6Mt/yr installed capacity.
Taiheiyo Cement increases sales in first quarter of 2023
08 August 2023Japan: Taiheiyo Cement's sales were US$1.35bn in the first quarter of the 2024 financial year, up by 9.6% year-on-year. Meanwhile, its profit before tax rose by 36% to US$20.8m.
Nikkei Financial Summary News has reported that Taiheiyo Cement has maintained its forecast of sales of US$6.43bn and profit before tax of US$392m for the full 2024 financial year, which ends on 31 March 2024.
Sumitomo Osaka Cement to raise sales in profit-making first half of 2024 financial year
08 August 2023Japan: Sumitomo Osaka Cement says that it expects sales to rise by 14% year-on-year to US$761m during the first half of the 2024 financial year. Nikkei Financial Summary News has reported that the producer expects a drop in its cement volumes, offset by price hikes. Currency effects will also impact its result. Meanwhile, coal prices remained lower than expected. The company expects to record a net profit of US$26.6m, compared to a loss of US$20.4m in the first half of the 2023 financial year. It previously forecast a US$13.3m loss.
Sumitomo Osaka Cement recorded US$52.8m in sales in the first quarter of the 2024 financial year (1 April - 30 June 2023). This corresponds to year-on-year growth of 16%. Nonetheless, it made a net loss of US$7.6m.
Throughout the first quarter of the 2024 financial year, Japanese cement despatches fell by 15% to 10.1Mt. Exports declined most sharply, by 43%, to 1.51Mt.
Italy: Buzzi's revenues rose by 14% year-on-year in the first half of 2023, to Euro2.15bn from Euro1.88bn in the first half of 2022. This was despite an 8.3% decline in its sales and volumes of cement and clinker, to 5.12Mt from 5.83Mt. The group recorded a rise in its earnings before interest, taxation, depreciation and amortisation (EBITDA) of 58% to Euro575m from Euro365m. It noted an 'unfavourable economic situation,' with a slowdown in many of its markets.
Buzzi said "In the second quarter of 2023, the performance of the manufacturing segment was still weak, and contributed to limiting the growth prospects of international trade. In early 2023, consumer price inflation slowed down, thanks to the decrease in the energy component, although it remained at historically high levels. The decline in inflation was more evident in industrial goods, which incorporated the trend of energy prices." It added "Prospects continue to be negatively affected by persistent inflation and the consequent restrictive orientation of monetary policies in the major advanced economies, as well as by the uncertainty associated with the continuation of geopolitical tensions on a global scale, first of all the ongoing conlict in Ukraine."
Lafarge Africa's sales rise in first half of 2023
01 August 2023Nigeria: Lafarge Africa's sales were US$257m during the first half of 2023, up by 5.9% year-on-year from US$242m during the first half of 2022. Costs rose and the company's profit after tax fell by 5.2%.
Lafarge Africa said "Our strategic and cost management initiatives have contributed to improved results, despite the challenges. We remain steadfast in our commitment to driving innovation and accelerating green growth in line with our sustainability ambitions and targets." The company added "The Nigerian infrastructure and construction sector is expected to continue to grow despite inflationary pressure on purchasing power. As a result, we maintain our positive outlook, with market recovery expected for the second half of the year. We will continue to maximise volume opportunities across our markets and actively manage our costs. The company remains committed to its sustainability ambitions and strategy of Accelerating Green Growth.”