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This is the coronavirus cement industry hub page from Global Cement. It includes dedicated features and resources on the topic as well as all the latest related industry news and comment. We'll be including more information as we have it so check back regularly to stay up to date
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Contents
- Features on the cement industry and coronoavirus
- Latest news comment on coronavirus
- Latest cement industry news on coronavirus
- Industry best practice
Features on the cement industry and coronoavirus
The Last Word - The economics of fear... and the importance of effective action
17 March 2020
In his inauguration speech as 32nd President of the United States, Franklin D. Roosevelt said the following: “the only thing we have to fear is fear itself — nameless, unreasoning, unjustified terror which paralyses needed efforts to convert retreat into advance.” His New Deal - a muscular package of public spending and make-work programmes aimed at the Great Depression - dragged the country out of the economic doldrums and back into robust economic health during the next six years...
Latest news comment on coronavirus
Has Vietnam's export-driven cement industry reached a precipice?
12 July 2023The close of the first half of 2023 brought the latest crop of seasonal cement data from the Vietnam National Cement Association (VNCA). Vietnam sold 61.4Mt of cement and clinker during the first half of 2023, up by 2.7% year-on-year.1 Graph 1 (below) tracks the progress of full-year Vietnamese cement and clinker sales over the six years up to 2022, as well as the most recent half-year.
Graph 1 - Vietnamese annual cement production, January 2017 – June 2023
The first half of 2023 marks the first half-year in which lockdown restrictions have been absent in both Vietnam and its main export market, China, since the start of the Covid-19 outbreak.2 Vietnam was especially hard-hit: it implemented the first lockdown outside of China in March 2020, and has recorded the 13th most Covid-19 cases of
...Update on China, March 2023
29 March 2023The Chinese cement sector had a tough time in 2022. This was confirmed this week as the large domestic cement producers released their financial results. Revenue was down, profits fell and cement sales volumes tumbled. The key causes included the continuation of the country’s zero-coronavirus policy, the declining real estate market and rising input costs for raw materials such as coal. Demand for cement withered and so did the fortunes of the cement companies.
Graph 1: Cement output in China, 2018 to 2022. Source: National Bureau of Statistics of China.
Data from the National Bureau of Statistics of China shows that cement output fell by 9.8% year-on-year to 2.13Bnt in 2022 from 2.36Bnt in 2021. The greater decrease was in the first half of the year rather than the second. ...
Update on the Philippines, October 2022
12 October 2022Cement imports are back on the agenda this week in the Philippines with the news that the Tariff Commission has backed repealing the duties currently being implemented. If it’s anything like what happened last time, back in 2019, the commission’s opinion will once again be passed back to the Department of Trade and Industry (DTI) for the final decision. The safeguard measure the commission wants to cut covers Ordinary Portland Cement (OPC) and Blended Cement. It summarised the situation as follows, “There is no existence of an imminent threat of serious injury and significant overall impairment to the position of the domestic cement industry in the near future.”
The commission reviewed the sector between 2019 and 2021 and concluded that the domestic cement industry maintained its market position, increased its mill capacities, stabilised its manufacturing costs and
...Update on Kenya, September 2022
28 September 2022Nigerian billionaire Aliko Dangote was spotted attending the inauguration ceremony of Kenyan President William Ruto earlier in September 2022. This is relevant because Dangote’s cement company previously announced plans in 2016 to build two 1.5Mt/yr plants in Kenya, near Nairobi and Mombasa respectively. They were intended to become operational by 2021. Unfortunately, Dangote himself allegedly described Kenya as being more corrupt than Nigeria to Kenyan broadcast journalist Jeff Koinange a few years later and nothing more happened. Back in 2014 Ruto visited Dangote Cement’s Obajana plant in Kogi state in Nigeria when the politician was the Deputy President of Kenya. Dangote’s attendance at the presidential inauguration this month suggests at the very least that his relationship with Ruto remains active. Maybe more news on those planned plants will follow.
...
Update on China, August 2022
31 August 2022The larger cement producers in China have published their half-year financial results and the numbers are looking grim. Starting with data from the National Bureau of Statistics of China, cement output in the country fell by 14.5% year-on-year to 979Mt in the first half of 2022 from 1.14Bnt in the same period in 2021. This is the lowest first half output figure since 2012. The decline on a monthly basis started in May 2021 and has carried on consistently since then. Rolling cumulative annual output hit a low of 2.18Bnt in July 2022, the lowest figure since at least the start of 2019 and well before the coronavirus pandemic started.
Graph 1: Cement output in China, 2018 to 2022. Source: National Bureau of Statistics of China.
The financial figures from the cement producers have mostly followed
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Latest cement industry news on coronavirus
Portland Cement Association expects US economy to weaken in first half of 2024 before recovery
26 January 2024US: Portland Cement Association (PCA) chief economist and senior vice president of market intelligence Ed Sullivan forecast a recovery of the US economy in the second half of 2024 at the World of Concrete conference in Las Vegas, Nevada. However, Sullivan told attendees that the economy will ‘gradually weaken’ in the first half of the year. The anticipated weakening is compounded by the end of Covid-19 relief programmes, delayed monetary policy effects and credit tightening. Supporting growth throughout the year are some of the US$550bn infrastructure investments under the Infrastructure Investment and Jobs Act. The US government says that 40,000 new projects under the act are either in progress or completed.
Ed Sullivan said "In terms of the construction outlook, there will be a battle between interest sensitive construction sectors and less interest sensitive construction activity such as infrastructure spending and the construction of large manufacturing plants associated with
...Ceremony for cement plant project in Kattakurgan
27 September 2023Uzbekistan: Hengyuan Cement has held a ground-breaking ceremony at the site of its up-coming cement plant in the Kattakurgan district of Samarkand. The plant, a joint-venture between Chinese and Uzbek partners, will have a capacity of 3Mt/yr and cost US$350m to construct. Cement will be sold in the local market and, according to developers, exported to as far afield as the European Union.
At the opening ceremony, the Hokim of Samarkand region Erkinjon Turdimov and Chinese partners noted that cooperation between Uzbekistan and China has been developing steadily in recent years. The project will lead to 600 new direct jobs. The long-awaited cement plant was first announced in 2018, but has repeatedly been delayed, particularly by the Covid-19 pandemic.
Norwegian government confirms funding for Heidelberg Materials Sement Norge’s Brevik carbon capture project
12 September 2023Norway: The Ministry of Petroleum and Energy has signed a new agreement with Heidelberg Materials Sement Norge, confirming funding of up to US$14.1m for the producer’s construction of a full-scale carbon capture system at its Brevik cement plant. Under the agreement, Heidelberg Materials Sement Norge will absorb extra costs that have arisen, and retain a larger share of any return on the project. Costs rose due to the Covid-19 pandemic, the Russian invasion of Ukraine and international supply chain pressures.
Nordic Daily News has reported that Heidelberg Materials Northern Europe director Giv Brantenberg said "We are in the process of completing the world's first full-scale plant for carbon capture in the cement industry, and have had great support from the Norwegian authorities throughout the project's many phases. Today's agreement reflects the good cooperation with the Norwegian government, and we look forward to completing this unique facility.”
Fives Services Gulf inaugurates Bahrain workshop
23 June 2023Bahrain: Fives Services Gulf has held the inauguration ceremony for its Bahrain workshop. The facility includes offices, warehouses and machining, parts production and repair facilities. The site first entered operation amid Covid-19 restrictions in early 2021.
Fives Services Gulf chief executive Frederic Gicquel said "We are proud to be part of the industrial development of Bahrain and support the government's efforts to improve the foreign investor experience. This workshop will enable us to provide better quality services to our clients in the region and contribute to the sustainable growth of the industrial sector."
The subsidiary of France-based Fives employs 134 people.
Slight improvement in Catalonian cement consumption
26 April 2023Spain: Cement consumption grew by 4% in Catalonia in the first quarter of 2023 to reach almost 600,000t. This slight improvement after the worst of the Covid-19 pandemic reflects continued pessimism in the autonomous region’s construction sector. This has been accentuated in recent months by the stoppage of real estate developments due to the uncertainty that inflation causes in costs and the increase in the price of money, which has slowed down the granting of mortgages.
While an 8.3% year-on-year improvement in sales was seen in March 2023, a large portion of this this improvement is due to artificially low consumption in March 2022 when there was a cement trucker strike.
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Cement industry best practice on coronavirus
Advisory guide for RMC companies during the COVID-10 pandemic - Federación Iberoamericana del Hormigón Premezclado & European Ready-mixed Concrete Association
COVID-19 Best Practice Health and Safety Guidelinesfor Employees in the Cement and Concrete Industry - via Cement Association of Canada
Above three documents provided by John Kline