Displaying items by tag: US
US: Buzzi Unicem has announced the upcoming transition of its 1Mt/yr Stockertown cement plant in Pennsylvania’s Northampton County to 100% Type IL Portland limestone cement (PLC) production in 2022. Local press has reported that Buzzi Unicem and its subsidiary Alamo Cement Company will have fully converted to PLC production at ‘several locations in the US’ before the end of the year, according to the group.
Monarch Cement increases sales in 2021
16 March 2022US: Monarch Cement’s net sales were US$212m in 2021, up by 12% year-on-year from US$189m in 2020. Its cement sales volumes increased by 12% year-on-year to 1.2Mt. Monarch Cement invested US$24m in new equipment in 2021, including 27 new ready-mix trucks, six new cement haul trucks, three loaders and two excavators. It plans to launch Portland limestone cement (PLC) products later in 2022.
US: The Environmental Protection Agency (EPA) has awarded its Energy Star certification to cement plants belonging to two Titan America subsidiaries. Titan Florida’s Pennsuco, Florida, cement plant has secured its 14th consecutive Energy Star, while Roanoke Cement’s Troutville, Virginia, cement has secured its 15th consecutive Energy Star.
Other cement plants to receive Energy Stars in 2022 included two Argos USA plants (Calera, Alabama, and Harleyville, South Carolina), two GCC plants (Pueblo, Colorado, and Rapid City, South Dakota), Buzzi Unicem’s Chattanooga, Tennessee, plant and three plants in Arizona: CalPortland’s Rillito plant, Drake Cement’s Paulden plant and Salt River Materials Group’s Clarkdale plant.
US clinker production rises very slightly in 2021
10 March 2022US: Cement companies produced 79.2Mt of cement in 2021, according to United States Geological Service (USGS) data. The figure corresponds to a 0.1% year-on-year rise from 79.1Mt in 2020. Texas contributed 10.7Mt, 13% of the production total, followed by Missouri with 8.97Mt (11%) and California with 8.94Mt (11%).
Turkish coal imports, March 2022
09 March 2022Türkçimento’s Volkan Bozay took to the airwaves last week to raise the issues that the war in Ukraine is causing for Turkey-based cement producers. The head of the Turkish Cement Manufacturers’ Association explained, to the local Bloomberg HT channel, that the dramatic jump in the price of Newcastle Coal posed a serious threat to the sector. The price jumped nearly US$100/t in a single day in early March 2022. Bozay said that the cost of cement from a plant using imported coal would consequently rise by around US$15/t. He added that the association’s members had an average of 15 – 20 days of coal stocks.
Graph 1: Price of coal, March 2020 – March 2021. Source: Trading Economics.
In a separate press release Türkçimento revealed that Turkey, as a whole, imported approximately US$1.5bn of coal from Russia in 2021. The cement industry imported about 5Mt of coal in 2021, from all sources, although the majority of this came from Russia. Coal shipments from Russia since the start of the war were reported as ‘very limited or even not possible.’ It was further explained that each US$10/t increase in the price of coal put up plant production costs by US$1.5/t of cement.
Naturally Bozay’s appearance on a television news show carried a lobbying aspect. He called for government import standards – such as the sulphur ratio, lower heating values and volatile matter limits - to be relaxed to allow coal to be imported more freely from sources such as Colombia, Indonesia and South Africa. There was also a push to let in more alternative fuels such as tyres and waste-derived fuels. The bit that Bozay didn’t mention though was how many of his members had long term coal supply contracts in place to cushion them, from short term price inflation at least. Yet, if coal shipments from Russia have simply stopped, then the price is irrelevant. A cement kiln configured to run on coal stops when it uses up its stocks.
Turkey was the world’s fifth largest cement producer in 2021 according to the United States Geological Survey (USGS). Türkçimento data shows that in 2020 it exported 145,000t of cement to Russia by sea. Overall it exported 16.3Mt of cement and 13.5Mt of clinker. The US, Israel, Syria, Haiti and Libya were the top destinations for cement. Notably, Ukraine was the sixth largest recipients of cement, with 752,000t imported, although anti-dumping legislation introduced in mid-2021 looked set to reduce it until the war started. Ghana, Ivory Coast, Guinea, Cameroon and Belgium were the principal recipients of clinker. Cumulative cement exports for the year to October 2021 were up by 3% year-on-year compared to the first 10 months of 2020. Clinker exports were down by 27% though. Overall domestic production and sales in Turkey rose by 9.5%, suggested an estimated production figure of 79Mt for 2021.
Other fallout in the cement sector from the war in Ukraine this week included Ireland-based CRH’s decision to quit the Russian market. It entered the region in 1998 through a subsidiary based in Finland and was operating seven ready-mixed concrete plants via its LujaBetomix joint venture. CRH says that all operations in Russia have now stopped. In 2021 it sold its lime business in Russia, Fels Izvest, to Russia-based Bonolit. Although selling concrete plants is not trivial, these are far cheaper assets than clinker production lines. Germany-based HeidelbergCement, Italy-based Buzzi Unicem and Switzerland-based Holcim each operate at least one integrated cement plant in Russia. So far these companies have publicly expressed dismay at the humanitarian crisis unfolding in Ukraine and made donations to the Red Cross.
Graph 2: European Union Emission Trading Scheme price, 2020 – March 2022. Source: Sandbag.
Finally, one more surprise this week has been a crash in the European Union (EU) Emission Trading Scheme (ETS) carbon price from a high of Euro96/t in early February 2022 to Euro58/t on 7 March 2022. As other commentators have stated, normally the carbon price would be expected to follow the energy market, but this hasn’t happened. Instead investors have pulled out, possibly to maintain liquidity for other markets.
With the US set to ban Russian oil, gas and coal imports and phase-outs to varying degrees promised by the UK and the EU in 2022, we can expect more turbulence from energy markets in the coming days. As the Turkish example above shows, all of this can... and will... have effects on cement production.
Padmaja Parakala appointed as director of research and development at Solidia Technologies
09 March 2022US: Solidia Technologies has appointed Padmaja Parakala as its director of research and development.
She holds 20 years of experience working in corporate material science, most recently working for Innovantage, a professional services firm she founded that has worked with Solidia Technologies and the Boral Innovation Factory. Prior to this she worked as the principal scientist and product performance leader at James Hardie Building Products in Australia. Earlier in her career she also worked for GE at the John F Welch Technology Center.
Parakala holds s PhD in material engineering from the Queensland University of Technology and master’s degrees from the Indian Institute of Technology in Kharagpur and the Indian Institute of Technology in Varanasi.
Imports drive US cement shipment growth in 2021
09 March 2022US: Cement shipments grew by 4.2% year-on-year to 107Mt in 2021 from 103Mt in 2020. Data from the United States Geological Survey (USGS) show that domestic shipments and imports rose by 2.3% to 90.8Mt and 16% to 16.3Mt respectively. Regionally, particular gains were reported in New England and Middle Atlantic, West North Central, Arkansas, Oklahoma, Arizona and New Mexico. Puerto Rico reported a 47% decline in shipments. The largest cement exporting nations to the US were Turkey, Canada, Greece, Mexico and Vietnam. Turkey, Greece and Vietnam each increased their imports by over 30% in 2021.
Continental Cement loses safety rep pay dispute
09 March 2022US: A court has instructed Continental Cement to pay a worker who acted as an employee representative during Mine Safety and Health Administration (MHSA) inspections at its Hannibal, Missouri, quarry. The Insurance Journal newspaper has reported that the producer reduced the worker's pay as a mobile equipment operator by a total of US$388 over a period of days in March and April 2020. In addition to paying the worker, Continental Cement must pay a US$17,500 fine to the US Treasury for violation of the Mine Safety and Health Act. It is also required to expunge any adverse information related to the whistleblower complaint from the employee's personnel record and to post information on miner's rights in employee areas.
MSHA district manager Robert Simms said "The MSHA investigation found Continental Cement clearly discriminated against the worker for serving as the miners' representative. Federal discrimination laws exist to protect workers from penalties for serving as safety and health representatives while on the job." Simms concluded "The judge's decision sends the message that retaliation is a costly mistake for employers."
Cemex to restart CPN cement plant’s Line 2
08 March 2022Mexico: Cemex says that it plans to restart Line 2 at its CPN cement plant in Sonora State. The line has a capacity of 0.8Mt/yr. Cemex will invest US$29m in restarting it, bringing its total recent investments in the CPN plant to US$44m. It previously invested US$15m in a restart of the plant’s 1Mt/yr Line 1 in 2021. When operational in mid-late 2022, Line 2 will join the existing line in supplying cement to Arizona, California and Nevada in the US.
Cemex USA president Jaime Muguiro said “Many cement customers in the western US have been impacted by tight supply constraints for several months, and at Cemex, we are proactively looking for opportunities to further alleviate those conditions and enrich customer experiences by enhancing how we operate while utilising our global reach.” He continued “Customers require more cement to keep pace with the region’s growth, and we want to ensure they have stable and steady access to the high-quality materials that are essential to meet their needs.”
Cemex Ventures invests in PartRunner
04 March 2022US: Cemex Ventures says that it has invested in industry and construction sector on-demand delivery platform PartRunner. The startup operates a fleet of trucks which provide flexible service to warehouses, retailers and job sites across the US. Under Cemex Ventures’ guidance, it plans to expand its services to also cover Mexico.
Cemex Ventures director Gonzalo Galindo said "This solution fits perfectly with Cemex's commitment to offer our customers greater control over their businesses by improving efficiency and transparency in the delivery of construction products and materials.”