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News Afghanistan

Displaying items by tag: Afghanistan

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Almalyk starts exporting cement to Afghanistan

28 March 2019

Afghanistan/Uzbekistan: Uzbekistan’s Almalyk Mining and Metallurgical Complex (AMMC) has started exporting cement to Afghanistan. A trial consignment of Ordinary Portland Cement (OPC) was despatched from the company’s new 1.5Mt/yr Sherabad cement plant in Surkhandarya, according to the Trend News Agency. It intends to export 0.5Mt/yr to Afghanistan. As part of a contract signed with the Hamid Company just under 1000t of cement has been sent by train to Mazar-i-Sharif.

Published in Global Cement News
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Pakistan cement despatches up by 9.4% to 46.8Mt in 2018

23 January 2019

Pakistan: Local cement despatches grew by 5.9% year-on-year to 40.9Mt in 2018 from 38.6Mt in 2017. Exports increased by 42% to 5.9Mt from 4.6Mt, according to data from the All Pakistan Cement Manufacturers Association. Overall, all cement despatches rose by 9.4% to 46.8Mt from 42.8Mt. By region, despatches and imports grew faster in the south of the country and exports fell by 7.8% in the north. Exports to Afghanistan fell by 12% but exports to India rose by 2% and overseas exports increased by 155%.

Published in People
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Rising maritime shipping rates could restrict Iranian cement exports

14 January 2019

Iran: Abdul Reza Sheikhan, the secretary of the Cement Industry Association, has warned that an increase to maritime shipping rates is further restricting exports in conjunction with US-backed trade sanctions. He said that the country has a production capacity of 87.5Mt/yr, that 48Mt is consumed domestically and that less than 15% is exported, according to the Islamic Republic News Agency. He also identified ‘negative’ competition between cement producers over exports has damaged the industry. To counter this, export teams in the east, west and south of the country have been formed.

The country exports cement to 17 countries including Iraq, Afghanistan, the Commonwealth of Independent States (CIS) region, Bangladesh and countries in Africa. It is the sixth largest exporter in the world.

Published in Global Cement News
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Tajikistan exported 1.44Mt of cement in 2018

14 January 2019

Tajikistan: Tajikistan exported 1.44Mt of cement in 2018 with a value of US$65.4m. This marks a rise of 48% year-on-year from 0.97Mt in 2017 with a value of US$45.9m, according to the Azernews newspaper. Tajikistan exports cement to Uzbekistan, Afghanistan and Kyrgyzstan.

Published in Global Cement News
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South Khorasan province in Iran produces 0.77Mt in first nine months

19 December 2018

Iran: Dawood Shahrakyh, the head of the South Khorasan Industry, Mining and Trade Organization, says that the two cement plants in South Khorasan province have produced 0.77Mt of cement in the first nine months of Iranian year that started on 20 March 2018. This represents a rise of 22% year-on-year since the same period in the previous year, according to the SHATA news agency. 0.45Mt of local production was exported. The province lies on the country’s border with Afghanistan.

Published in Global Cement News
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Update on Pakistan

24 October 2018

As ever, there have been plenty of news stories from Pakistan recently covering the on-going fallout of the water shortage at the Katas Raj Temples in Chakwal, Punjab and an update on new production line at Maple Leaf Cement’s Iskanderabad plant. The two stories present two sides to the furious pace of the local industry and the potential price this growth might entail.

 Graph 1: Cement despatches in Pakistan, 2012 - 2017. Source: All Pakistan Cement Manufacturers Association.

Graph 1: Cement despatches in Pakistan, 2012 - 2017. Source: All Pakistan Cement Manufacturers Association.

Graph 1 above sets the scene with an industry that has seen total despatches grow by nearly 30% to 42.8Mt in 2017 from 33.1Mt in 2012. About four-fifths of this is based in the north of the county. The big sub-story alongside this is that exports have fallen by half to 4.2Mt in 2017 from a high of 8.3Mt in 2013. The cause of this appears to be a decline in the Afghan market and a similar drop in waterborne clinker exports. Given the higher proportion of exports to the southern market this change has likely hit the industry in south harder despite overall depatches there rising. So far in 2018 similar trends are holding, except for exports, where the clinker export market has rallied significantly in the south.

The background to all this growth domestically is Chinese investment in the form of the China-Pakistan Economic Corridor (CPEC). CPEC-related project include integrated road infrastructure, the modernisation of railways and the development of the city of Gwadar and its related infrastructure. In addition the local Public Sector Development Programme (PSDP) is also having an effect and demographic pressures, such as a housing shortage, are also expected to support the construction market.

Data from the All Pakistan Cement Manufacturers Association (APCMA) placed cement production capacity at 54Mt/yr in September 2018 compared to 66Mt/yr in the Global Cement Directory 2018, which includes new capacity being built. This compares to around 10Mt/yr in the 1995 local financial year to an estimated 73Mt/yr by the State Bank of Pakistan in its third quarter report for 2017 - 2018. This rapid growth can be seen in recent stories such as the Iskanderabad plant expansion, Flying Cement’s mill order from Loesche, Kohat Cement’s mill order also from Loesche, a new solar plant at Fauji Cement at its Attock plant and the commissioning of DG Khan’s new plant at Hub. These stories are all from the last three months! The State Bank of Pakistan estimated that 11 producers hare now investing US$2.12bn on capacity expansions to add over 23Mt/yr by the end of the 2021 financial year.

One potential price for all of this growth is currently being illustrated in the ongoing legal wrangles about the use of water by cement plants near the Katas Raj Temples. What started as an investigation into why water levels were dropping at a pond at a Hindu heritage site seems to have transformed into a full scale inquiry into alleged corruption by local government around the setting up of cement plants. A report by the Punjab Anti-Corruption Establishment Lahore to the Supreme Court has found irregularities committed by government departments in connection to the setting up of cement plants by DG Khan and Bestway Cement in Chakwal. It seems unlikely at this stage that this inquiry will cause too much trouble for the local cement industry but it will certainly make it more complicated and potentially more expensive to st up new plants in the future.

Read Global Cement’s plant report from the DG Khan’s Khairpur cement plant in Chakwal

Published in Analysis
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Cement export volumes growing in Tajikistan so far in 2018

20 September 2018

Tajikistan: Average monthly volumes of cement exports have grown by 37% year-on-year to 115,000t in the first eight months of 2018 compared to 84,000t for the whole year in 2017. Data from the Ministry of Industry and New Technologies shows that 920,000t of cement was exported from January to August 2018, according to the Asia Plus agency. 520,000t was exported to neighbouring Uzbekistan, 340,000t to Afghanistan and 60,000t to Kyrgyzstan.

Published in Global Cement News
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Extent of Afghan ban on Iranian cement imports unclear

20 September 2018

Afghanistan/Iran: The Afghanistan Customs Department has banned imports of cement at the Farah border crossing from Iran’s South Khorasan Province. Mozaffar Alikhani, the Secretary-General of Iran-Afghanistan Chamber of Commerce, said that the ban had been implemented at the border point due to a lack of an online monitoring system, according to Eghtesadonline. The ban also includes oil products, steel products, tiles and ceramics.

Afghan officials have made contradictory statements about a ban of imported commodities from Iran. Ali Shariati, a member of Iran Chamber of Commerce, Industries, Mines and Agriculture, told the ILNA news agency that the Afghanistan Customs Department had banned cement imports and those of other materials from 16 September 2018 to bring it into alignment with US sanctions on Iran. However, Alikhani dismissed this and said that the goods in question continue to be exported as usual from Iran to Afghanistan through the border crossings of Dogharoun in Khorasan Razavi Province and Nimrouz in Sistan-Baluchestan Province.

Sakhi Ahmad Peyman, the president of the Afghanistan Industrial Association, has also described the ban as temporary.

Published in Global Cement News
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Pakistan’s producers urge government to increase import duty

11 September 2018

Pakistan/Afghanistan: Pakistan’s cement industry has urged the government to increase the customs duty on the import of clinker to support local manufacturers. It also wants a reduction in the cost of doing business in the country to encourage domestic sales. The industry stakeholders said that Pakistan has been losing ‘a major chunk’ of its market in Afghanistan to Iranian cement, due to its higher energy costs.

The costs of electricity and gas in Pakistan are reportedly the highest in the region, while additional duties on coal imports have nullified the lower cost of coal on the global markets. Locally, high government taxes have encouraged imports of under-invoiced Iranian cement imports, resulting in drop in domestic sales.

According to the latest data, domestic consumption has dropped by almost 14% over the past three years. The domestic cement dispatches in the first two months of the current fiscal year declined by 5.3% year-on-year. In the north, cement dispatches declined by 8.8% while in south zone they declined by 10.9%. In July 2018 the overall growth in the industry was 5.1%, while in August 2018 the overall decline was 8%.

The industry recommended that imports of cement should not be allowed until the importers register themselves with the Pakistan Standards and Quality Control Authority to certify the quality of their cement.

Published in Global Cement News
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Iranian cement exports leap 32%

05 September 2018

Iran: Cement exports from Iran registered growth of 32% during the first four months of the country’s current fiscal year (20 March 2018 – 22 July 2018), according to the Islamic Republic’s Customs Administration data.

The country exported US$107m worth of cement during the period. The volume rose to 2.7Mt, 24% more than in the comparable period of the previous fiscal year. The country also exported 2.2Mt of clinker worth US$60m in the same period of time.

Iran exported cement to 27 countries across the world in the period, including Kuwait, Iraq, Afghanistan and Bangladesh, with exports to Oman and Kuwait growing strongly.

The latest data of the Iranian Ministry of Industries, Mining and Trade says that the country’s total cement output amounted to 13.36Mt during the same first quarter period, a year-on-year fall of 5.7%.

Published in Global Cement News
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