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Democratic Republic of Congo increases two-year Ugandan cement imports by 30% to 90,000t 10 February 2021
Democratic Republic of Congo/Uganda: The Democratic Republic of Congo has increased its imports of cement from Uganda by 30% to 90,000t in the two years since 1 February 2019 compared to the two prior years. The Daily Monitor newspaper has reported the reason for the increase as a Rwandan ban on Ugandan goods across the East African countries’ border. This contributed to a 3% fall in Uganda’s value of cement exports to US$59.9m in the 2020 financial year from US$61.5m in the 2019 financial year.
Lebanese government conducts u-turn on cement imports 10 February 2021
Lebanon: The Ministry of Industry has reversed a recent decision to allow cement imports into the country. Following a meeting with local cement producers, Minister Imad Hobballah declared that allowing imports would decrease official selling prices rapidly, according to the L'Orient-Le Jou newspaper. Local producers have reported low sales due to a strict coronavirus-related lockdown that started in January 2021. Cimenterie Nationale reportedly stopped production in early February 2021 due to a lack of raw materials.
Guatemalan cement producers query quality of imports 10 February 2021
Guatemala: Local cement producers have expressed concern over the quality of rising imports from Asia. Issues over quality standards and packaging have been raised, according to the El Periódico newspaper. According to data from the Bank of Guatamala, cement imports worth around US$57m were reported in the first 11 months of 2020. Imports from Turkey and Vietnam represented 85% of this. The country has a cement production capacity of 5.5Mt/yr and domestic consumption is around 3Mt/yr.
FLSmidth publishes 2020 full-year results 10 February 2021
Denmark: FLSmidth’s group net sales fell by 20% year-on-year to Euro2.21bn in 2020 from Euro2.78bn in 2019. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) before special non-recurring items fell by 44% to Euro152m from Euro270m. Net profit was Euro27.6m, down by 74% from Euro104m.
The group’s cement business recorded net sales of Euro783m, down by 31% from Euro1.14bn, and an EBITA loss of Euro15.9m, compared to a gain of Euro65.3m in 2019. It said that the cement business is not expected to be EBITA positive in 2021 due to continued cement reshaping costs. However, order intake for the cement division improved year-on-year in the fourth quarter of 2020 due to a Euro101m engineering, procurement and supervision contract for a cement plant project in Ethiopia.
Chair Vagn Ove Sørensen and chief executive officer Thomas Schulz said, “The cement market is faced with on-going overcapacity and we see no short-term to medium-term recovery. Thus, we continue activities to reshape our cement business. Large economic stimulus programmes, combined with an increasing focus on lower-carbon cement, will create good opportunities in the medium- to long-term but the timing and extent of an overall rebound in the cement market remain uncertain. It is, however, clear that the cement industry will need substantial investments to meet the emissions reduction targets set by a growing number of cement producers as well as the recent commitments to carbon neutrality made by the Global Cement and Concrete Association (GCCA) and the European Cement Association. Based on the need to decarbonise, we foresee a multi-commodity cement industry in the future, utilising a range of cement production processes and a variety of raw materials. As the industry’s leading and most innovative premium supplier with strong process know-how, we are strongly positioned to benefit from this development.”
In further comments about cement industry trends the company noted that, “Following the shutdown of about 20% of the world’s cement plants outside of China in April 2020, the share of cement plants in operation has since climbed back up above 95% at year-end. However, many plants continue to run at reduced capacity and sites remain difficult to access due to restrictions and preventative measurements taken by authorities and plant operators.”
Taiheiyo Cement profits rise despite coronavirus 09 February 2021
Japan: Taiheiyo Cement’s consolidated net profit in the nine-month period which ended on 31 December 2020 was US$355m, up by 22% year-on-year from US$292m in the same period in 2019. Sales fell by 2% to US$6.24bn from US$6.33bn.
The company said that domestic demand fell in the second quarter of the 2021 financial year due to the suspension of construction work during a local coronavirus lockdown. Cement sales volumes of Japanese producers were 29.6Mt, a decrease of 5% yet exports rose by 6% to 8.22Mt. Public and private sector demand remained sluggish into the third quarter of the financial year due to process delays and a shortage of construction workers. However, its cement business recorded a year-on-year price increase.