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Magazine Articles Coronavirus hub

Coronavirus hub


Coronavirus

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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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One hour of discussion - live - of the week’s global cement news from around the world, including the latest on the effects of the coronavirus pandemic on the cement industry. Audio and video callers are welcome to participate.

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...

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Latest news comment on coronavirus

India starts to build cement capacity again

09 December 2020

Manoj Kumar Rustagi was on hand yesterday to discuss JSW Cement’s operations in the UAE at the Virtual Middle Eastern Cement Conference. At the event, jointly organised by Global Cement Magazine and the Arab Union for Cement and Building Materials (AUCBM), Rustagi mainly stuck to the development of the producer’s new integrated plant in the Fujairah Free Zone but he also gave an overview of JSW Cement’s presence in India. For example, as part of an industrial conglomerate, JSW Group, the cement producer benefits from links to steel production by JSW Steel that enables it to use blast furnace slag. Notably, JSW Cement’s Shiva Cement subsidiary announced plans at the end of November 2020 to spend around US$200m on a new 1.4Mt/yr integrated cement plant in Sundergarh district, Odisha with the clinker production line supplied by ThyssenKrupp Industries India.

JSW Cement is not alone in ordering new production capacity. This week, UltraTech Cement approved a planned increase of 12.87Mt/yr for around

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Update on Turkey: November 2020

18 November 2020

Last week’s financial results from Çimsa contained a glimmer of hope for the Turkish cement market. Its net sales grew by 27% year-on-year to Euro175m in the first nine months of 2020 and operating profit more than doubled. Crucially, the balance between domestic and export sales tilted back a little toward the local market at a 55/45 ratio rather than 40/60 for the same period in 2019. Oyak Cement, another of the larger local producers, reported a similar rise in sales also. Akçansa Çimento, the joint venture between Sabancı Holding and HeidelbergCement, saw its sales fall slightly so far in 2020 but its profit grew. These financial results are all surprising given the currency and debt crisis the country faced in 2018 and now coronavirus in 2020.

Graph 1: Domestic and export cement sales in Turkey, January – July 2017 – 2020. Source: Turkish Cement Manufacturers’ Association (TÇMB)

Graph 1: Domestic and

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Third quarter 2020 update for the major cement producers

11 November 2020

2020 has been a year like no other and this clearly shows in the financial results of the major cement producers so far.

The first jolt is that several major Chinese cement producers have seen their sales fall. Following a tough first quarter due to coronavirus, the Chinese industry then overcame floods in the summer, to eventually report a decrease in cement output of 1.1% year-on-year to 1.68Bnt in the first nine months of 2020. The world’s largest cement producer, CNBM, reported a slightly smaller drop in sales year-on-year in the first nine months of 2020. This relatively small fall, just below 1%, may be due to CNBM’s size and diversity of business interests. Other large Chinese producers have noted bigger losses, such as Huaxin Cement’s 9% sales decline to US$3.04bn and Jidong Cement’s 5% sales fall to US$3.8bn. However, Anhui Conch actually saw a 12% rise in sales to US$18.7bn.

Graph 1: Sales revenue from selected</p>...      	      </div>
      
      
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Who wants a piece of Eurocement?

04 November 2020

Eurocement changed owners this week when Sberbank took control of the company’s parent organisation. Due to a ‘difficult financial situation’ the state-owned bank said it had consolidated 100% of the shares of Eurocement’s parent company GFI Investment Limited. It’s uncertain quite how difficult this situation is but in 2016 the cement producer owed the bank Euro700m. Local media agency RosBiznesConsulting (RBC) reported in September 2020 that the ‘problem borrower’ that had caused a record increase in overdue debt at Sberbank in July 2020 was none other than Eurocement. Whilst Sberbank has said so far that it does not have operational control of the group, it is seeking a strategic investor for the asset.

This is a major

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Update on the US: October 2020

21 October 2020

Ed Sullivan was present to tell Global Cement Live viewers about the Portland Cement Association’s (PCA) autumn forecast last week. The PCA expects US cement consumption to drop by 1.5% year-on-year on 2020. This is a weighted average of its three projections, which cover a gradual recovery from coronavirus-related economic disruption, a less controlled scenario and one where wide-spread vaccination has a positive effect in the second half of 2021. The first scenario is the PCA Market Intelligence’s most likely one but only the fast vaccination scenario predicts a return to growth in 2021. This is wide but understandable deviation from the PCA’s autumn forecast in 2019 that expected moderate growth albeit a slowly weakening economy. Almost nobody seriously expected 2020 to turn out like it has. Follow the link at the bottom of this article to view the presentation in full.

Graph 1: Portland & Blended Cement shipments by US region</p>...      	      </div>
      
      
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View the full coronavirus news section

Latest cement industry news on coronavirus

IKN presented with first clinker from upgrade at CBR Cement’s Antoing plant in Belgium

19 January 2021

Belgium: IKN was presented with the first clinker from a modified calciner and IKN cooler installed at the CBR Cement integrated Antoing plant on 24 December 2020. The cement sector engineering supplier said, “We thank everybody involved for their determination and efforts in this challenging project: in spite of Coronanirus and a tough schedule there was no compromise on safety!” CBR Cement is a subsidiary of Germany-based HeidelbergCement.

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Peruvian cement production falls by 14% to 9.14Mt in 2020

19 January 2021

Peru: Cement and clinker production fell by 14% year-on-year to 9.14Mt and 39% year-on-year to 5.54Mt respectively in 2020. Data from the Association of Cement Producers (ASOCEM) shows that production fell significantly during March to May 2020 at the same time as a coronavirus-related lockdown. However, ASOCEM reports that cement sales from August to December 2020 were higher than the historical monthly averages. Exports of cement and clinker fell by 28% to 0.14Mt and 56% to 0.31Mt. Imports of cement decreased by 7% to 0.72Mt but clinker imports grew by 7% to 0.67Mt.

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Huaxin Cement predicts 2020 profit drop

15 January 2021

China: Huaxin Cement has forecast a 9 -14% year-on-year fall in full-year net profit in 2020, of up to US$140m. It said that it recorded a net profit attributable to shareholders after deducting non-recurring gains and losses of around US$980m in 2019.

The company said, “The main reason for 2020 performance decline is the hit of Covid-19 in the first half of this year and vast flood disaster along Yangtze River in July 2020. The sales volume of main products were hugely affected and the price fell to some extent, leading to the reduction in the operating revenue.”

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Indian cement demand expected to return to pre-pandemic levels

13 January 2021

India: Credit ratings agency ICRA expects cement demand to rise by 20% year-on-year in the 2022 Indian financial year, which starts in April 2021, allowing the local market to return to volumes previously seen before the coronavirus pandemic. In its latest report the credit ratings agency predicts that growth will be supported by rural demand, including affordable housing, and recovery in infrastructure segment, according to the Press Trust of India. Cement production capacity is forecast to increase by up to 22Mt compared to 17Mt in the previous year. Most of this additional capacity is expected to be in the eastern region. Capacity utilisation rates should recover to 64% from 56%.

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Swiss cement deliveries fall slightly in 2020

13 January 2021

Switzerland: CemSuisse, the Swiss cement association, says that cement deliveries fell by 1.5% year-on-year to 4.15Mt in 2020. Deliveries remained stable in the first quarter before falling by 3.3% year-on-year in the second quarter at the same time of the first wave of the coronavirus pandemic. They subsequently recovered to a small increase in the third quarter before falling by 3.1% year-on-year in the fourth.

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View the full coronavirus news section

Cement industry best practice on coronavirus

UK MPA guidance document and posters to help members adapt to COVID-19uidance document and posters to help members adapt to COVID-19

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

COVID - Some feedback

Operating During a Pandemic

Sample Company Plan

Above three documents provided by John Kline

Loesche - Innovative Engineering



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