Displaying items by tag: Pakistan
Pakistan: Cement plants in North Pakistan are using 70% Afghan coal in their fuel mix, and may increase the figure to 90%. Afghan coal costs US$170 – 200/t, in line with local Pakistani coal prices. The News International has reported that fossil fuel supply disruptions ensuing from the on-going war in Ukraine have increased global coal prices. Additionally, Indonesian coal is subject to a ban on exports, while bad rains have disturbed Australian coal production. On 14 March 2022, the price of South African coal exported from Richard Bay, Umhlathuze Municipality, was US$460/t, up by 95% month-on-month from US$236/t on 10 February 2022. South Africa has previously been a major source of coal for Northern Pakistani cement production. Cement producers in the region have on average 4 – 5 months’ supply of coal in inventory.
Pakistan: The Cabinet Committee on Legislative Business of the Punjab government has licenced the establishment of a new cement plant in the state. The News newspaper has reported that the committee also approved the expansion of two existing cement plants.
Pakistan: All Pakistan Cement Manufacturers Association (APCMA) members exported 405,000t of cement in February 2022, down by 34% year-on-year from 616,000t in February 2021. Domestic deliveries also dropped, by under 1% to 3.95Mt from 3.96Mt. Amid the declines, Pakistani cement producers have reported a steep rise in their costs due to increases in international freight rates and coal prices and the country’s on-going ban on trade with neighbouring India. Cheaper Iranian cement has undercut Pakistani cement sales to Bangladesh, while the Afghan market has yet to recover following the withdrawal of peacekeeping forces.
Pakistani cement production costs rise
10 February 2022Pakistan: Cement producers have reported a rise in operating costs. The News International newspaper has reported that costs have risen due to a hike in the price of imported Afghan coal. The price of the coal rose by 13% to US$170/t from US$150/t in the week leading up to 10 February. The rise brings it to just 23% below the price of imported coal from South Africa, which is currently US$236/t.
The Pakistani cement industry depends on imports of coal, of which 30 – 40% came from Afghanistan in Northern Pakistani cement production in 2021.
Power Cement receives ISO 50001:2018 energy management certification
10 February 2022Pakistan: Power Cement has received the International Standards Organisation (ISO)’s ISO 50001:2018 certification for the energy performance of its management systems.
The producer said “We are on a never-ending quest to improve the environment for future generations by promoting the usage of sustainable energy.”
South African cement imports rise by 18.7% to November 2021
02 February 2022South Africa: Data from Industry Insight shows that cement imports grew by 18.7% year-on-year to 1.1Mt in the first 11 months of 2021. Imports hit a monthly high of 162,000t in November 2021, according to Moneyweb. The majority of the imports came from Vietnam followed by Pakistan. The increase in imports in November 2021 appears to have occurred despite a ban on the use of imported cement on all government-funded projects that started in the same month. Bryan Perrie, the head of Cement & Concrete SA, said that it was likely that imports in November 2021 remained high is because the cement was “probably already on the water before the designation came in."
Pakistan: Lucky Cement increased its standalone first-half sales in the 2022 financial year by 20% year-on-year to US$2.87bn from US$2.39bn in the first half of the 2021 financial year. This was despite a 5.9% year-on-year decline in cement volumes to 4.7Mt. Domestic cement sales increased by 0.8% to 3.66Mt from 3.63Mt, while exports fell by 20% to 1.07Mt from 1.34Mt.
The Business Recorder newspaper has reported that the company increased its consolidated net profit by 27% year-on-year. Its consolidated profit after tax was US$972m in the first half of the 2022 financial year.
National Construction Association of Sri Lanka claims no checks carried out on cement imports
26 January 2022Sri Lanka: The National Construction Association of Sri Lanka (NCASL) claims that no quality control checks are being conducted on imports of cement. The association says that there are labels printed on cement bags confirming that they were quality checked by the Sri Lanka Standard Institute (SLSI) but that it has no evidence of such checks actually being carried out, according to the Sri Lankan Daily Mirror newspaper. It has asked for the authorities to show evidence that the quality control checks are actually taking place.
Sri Lanka faced a shortage of cement in the autumn of 2021 due to input cost rises, supply chain disruption and negative exchange rates effects. The NCASL reports that most cement imports come from India or Pakistan.
Power Cement signs solar power deal
12 January 2022Pakistan: Power Cement has signed an agreement with Burj Solar Energy for the procurement of electricity on a fixed tariff for the next 20 years. The supplier plans to build a 7MW solar power plant to support the deal. The unit is expected to be operational by mid to late 2022. Power Cement said it took the decision to cut growing electricity costs.
Fauji Cement takes US$212m loan for cement plant expansions
06 January 2022Pakistan: Fauji Cement has taken out a loan of US$212m from a consortium lead by Habib Bank Limited. The Business Recorder newspaper has reported that the funding will go towards cement plant expansion projects with a total cost of US$339m. Fauji Cement plans to expand its plant in Dera Ghazi Khan, Punjab, while its subsidiary Askari Cement plans to expand its plant in Nizampur, Khyber Pakhtunkhwa. The company says that the projects will together increase its installed cement production capacity to 10Mt/yr.