30 August 2023

Australia: Adbri recorded sales of US$599m during the first half of 2023, up by 14% year-on-year. Its net profit grew by 13%, to US$33.7m. The producer noted continued ‘solid’ demand, and traction on its price increases. It faced high capital requirements for its on-going upgrade of its Kwinana grinding plant to consolidate its Western Australian operations there. The company expects its second-half 2023 earnings to rise ‘moderately’ due to the effects of its cost discipline and price increases, as well as sustained levels of cement demand.

India: UltraTech Cement has awarded a contract to Vibrant Energy to build a 21.6MW wind farm in Maharashtra. The wind farm will provide energy for UltraTech Cement’s cement plants in the state.

Saur Energy has reported that Vibrant Energy chief executive officer Srinivasan Viswanathan, said “We are excited to partner with UltraTech and accelerate their green energy transition. This partnership marks a significant step towards a sustainable and carbon-neutral future. This will act as a catalyst for transforming not just the cement industry, but other energy-intensive industries as well.”

France: The French cement sector association, France Ciment, has called on the government to make ‘heavy investments’ in the industry amid its on-going transition to net zero CO₂ cement production. It estimated the total cost of its transition, which will include carbon capture, at Euro3.5bn,according to Les Echos newspaper. The association said that producers currently benefit from the government’s partial price cap on electricity for industrial plants. It sought clarity as to whether the cap will remain in force beyond its scheduled limit in 2025. Lafarge France said that capped prices covered 50 – 60% of its electricity consumption in 2022.

Vietnam: State-owned Vicem Ha Tien has despatched its first shipment of cement to the US. The Vietnam government says that Vicem Ha Tien will continue to further diversify its markets.

Domestic-focused cement producers like Vicem Ha Tien have experienced increased competition in the past year due to a slowdown in the Chinese market.

Mexico: Construction activity grew by 29% year-on-year during the first half of 2023. Local press has reported that this is its sharpest increase since reporting began in 2006. Major infrastructure projects reportedly drove the growth. These include the Mayan Train, Isthmus Train and Mexico-Toluca Interurban Train railway projects and the Olmeca oil refinery project.

As a result, Cemex and GCCs’ share prices have been the fastest and seventh fastest growing respectively on the main index of the Mexican Stock Exchange.

China: CNBM’s sales from its cement businesses fell by 16% year-on-year to US$6.14bn in the first half of 2023 from US$7.34 in the same period in 2022. Its adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) dropped by 39% to US$991m from US$1.63bn. The group’s sales volumes of cement and clinker fell by 1% to 127Mt and 15% to 15.4Mt respectively. Sales volumes of concrete decreased by 10% to 35.6Mm3 from 39.5Mm3. Overall the group’s sales fell by 8% to US$14bn and its adjusted EBITDA by 27% to US$2.03bn.

The company said that its building materials division faced weakening demand, high inventory, low prices and declining profits. It noted that industry overcapacity remained high, despite supply-side structural changes, and that although the price of coal was declining it was insufficient to offset the fall in cement prices and profit in turn.

China: Anhui Conch grew its concrete and aggregate sales in the first half of 2023 to increase overall sales. Its revenue grew by 16% year-on-year to US$8.99bn in the first half of 2023 from US$7.73bn in the same period in 2022. However, its cement and clinker sales fell by 7% to US$6bn from US$6.46bn. Sales revenue fell in all of its domestic sales regions, although they rose overseas. By contrast, sales and trading of other products more than doubled to US$2.7bn. The group’s sales volumes of cement and clinker increased by 3% to 134Mt. Its total profit fell by 32% to US$928m from US$1.37bn.

In its interim results the company said that it had “actively responded to the complicated and difficult industry situation and strived to overcome the impact of unfavourable factors such as declining real estate investment, sluggish market demand and intensified industry competition.”

China: Tangshan Jidong Cement’s operating income fell by 14% year-on-year to US$1.99bn in the first half of 2023 from US$2.31bn in the same period in 2022. Its sales volumes of cement and clinker grew by 14% to 44Mt. However, it reported a loss of US$50.7m compared to a profit of US$157m previously. Its operating income fell in all regions domestically except the North-east of the country. The company noted that low cement prices had led to a decline in the profits of the cement sector.

Peru: Switzerland-based Maerz has received an order from UNACEM (Unión Andina de Cementos) to supply a 600t/day PFR lime kiln. The kiln will be built and operated jointly at Tarma by UNACEM and Mexico-based lime producer Calidra Group. UNACEM already runs its integrated Condorcocha cement plant in Tarma. The supplier says that the kiln will be ready to install future CO₂ capture technologies due to airtight sealed charging and discharging systems. It will also save up to 20% of electrical energy compared to conventional rotary piston blowers by using high-pressure fans to provide the process air.

Planning is underway for the project and is expected to be completed by the end of 2023. Maerz’ scope of supply will include the petroleum coke firing system, skip winch, charging and discharging systems, high-pressure fans, hydraulic unit and control system. According to the schedule, commissioning should take place in the first half of 2025.

Canada: Heidelberg Materials says that its integrated Delta cement plant in British Columbia has switched to exclusively producing its EcoCem Portland limestone cement (PLC). EcoCem PLC is a Portland limestone cement that contains up to 15% limestone and generates approximately 10% less CO₂ compared to other Portland cements. It has equivalent performance to ASTM and CSA standards for Type I/II Portland cement in strength and durability, and can be used in any application where Portland cement Type I is normally used.

Prior to the full transition to PLC production, the plant had already taken steps to reduce its CO2 emissions by using alternative fuels. The Delta cement plant has been in operation since the 1970s.