Displaying items by tag: Consumption

Zimbabwe: Fossil Mines plans to keep Lafarge Zimbabwe publicly traded and to recapitalise it through investments after it completes its acquisition of the company. The Insider newspaper has reported that this will lead to an increase in the company’s cement production.

Zimbabwe consumed 1.4Mt of cement in 2021, of which 560,000t (40%) was imported. Switzerland-based Holcim agreed to sell its 76% stake in national number two producer Lafarge Zimbabwe to Fossil Mines earlier in June 2022.

Philippines: The Philippines imported 6.47Mt of cement from Vietnam in 2021, 91% of a total 7.11Mt of cement imported in the year. The Cement Manufacturers Association of the Philippines (CeMAP) recorded that total imports increased by 14% year-on-year from 6.25Mt of cement in 2020, while imports from Vietnam increased by 20% year-on-year from 5.4Mt.

The Manila Bulletin newspaper has reported that Philippine cement producers increased their production capacity by 23% year-on-year to 35.3Mt/yr at the beginning of 2022. CeMAP projected further capacity growth of 55% to 54.8Mt/yr by the end of 2025, against a domestic demand that year of 66Mt/yr.

Cameroon: The Cameroon Minister of Trade Luc-Magloire Mbarga has authorised cement producers and importers to begin importing more cement from Congo and the Democratic Republic of Congo (DRC) in order to combat a local shortage. The Business in Cameroon newspaper has reported that Mbarga said that authorisation will operate temporarily, until high cement prices drop.

In 2021, Cameroon produced 4.5Mt of cement. Its domestic consumption was 4Mt, up by 14% year-on-year from 3.5Mt in 2021.

Dominican Republic: First-quarter domestic cement consumption in the Dominican Republic rose by 2.9% year-on-year in 2022. The Dominican Association of Portland Cement Producers (ADOCEM) said that producers’ costs rose year-on-year, particularly in the area of fuels, which accounts for 60% of costs. Electricity prices also rose during the quarter.

Association president Felix Gonzalez said "Without a doubt, energy management is a key point in the economic sphere of a cement plant since it makes this industry very susceptible to deficiencies and high tariffs in the electricity sector, as well as to the continuously increasing costs of oil and its derivatives.”

In 2021, ADOCEM members produced 6.5Mt of cement, up by 27% year-on-year from 5.1Mt in 2020. Full-year consumption was 5.5Mt.

Japan: Taiheiyo Cement’s consolidated sales declined by 18% in its 2022 financial year, which ended on 31 March 2022, to US$5.51bn from US$6.72bn. The group’s net profit was US$225m, down by 38% from US$364m.

Nikkei Financial Summary News has reported that Japanese cement consumption was 37.9Mt in the 2022 financial year, down by 2% year-on-year.

Argentina: Data from the Asociación de Fabricantes de Cemento Portland (AFCP) shows that cement shipments grew by 7% year-on-year to 2.89Mt in the first quarter of 2022 from 2.71Mt in the same period in 2021. Local consumption of cement increased at a similar rate but exports rose by 18% to 31,040t from 26,276t.

Russia: The government is ‘working to establish import flows’ of building materials from Uzbekistan. Russian media sources have reported that the construction industry is also hoping to expand import partnerships with China, India, Iran and Turkey. Russian cement production reportedly continues to adequately serve the national demand for cement.

World: Market Research Future has forecast a 15% composite annual growth rate (CAGR) in global green cement demand between 2018 and 2023, where green cement is defined as fly ash cement, slag cement, geopolymer cement and other cements produced using alternative raw materials. Market Research Future predicts that fly ash cement’s global growth will be the sharpest due to its abundant availability. Its report concluded that cement sector strategies in response to the growth would include mergers, joint ventures and acquisitions.

New Zealand: Holcim Australia and New Zealand plans to establish a new low carbon cement import and distribution facility next to its existing cement terminal at Ports of Auckland. The company says that the facility will have the capacity to replace 100,000t/yr of ordinary Portland cement (OPC) used in New Zealand. In 2021, the country consumed 1.6Mt of cement, generating 1.3Mt of CO₂ emissions.

CEO George Agriogiannis said “I’m pleased Holcim Australia and New Zealand is progressing to the building phase of a facility that will import and distribute low carbon cement replacement products. Once operational, the site will enable the reduction of carbon emissions via a cement replacement which can be used for applications such as infrastructure, commercial and residential projects.” He concluded “This initiative is a positive step toward the New Zealand government’s Zero Carbon ambitions and Holcim’s Net Zero climate pledge.”

The data on cement consumption for 2021 in Spain is out this week and it looks promising. As the national cement association Oficemen explained, last year was the sector’s best for over a decade, nearly reaching 15Mt consumption and exceeding the figure in 2019 before the Covid-19 pandemic started. Oficemen also singled out particular strong performance in December 2021. It now expects this growth trend to continue into 2022 with a forecast of 5% to 15.6Mt predicted based on both domestic and infrastructure segments.

Graph 1: Cement consumption in Spain, 2012 – 2021. Source: Oficemen.

The Spanish cement industry reached a peak consumption of over 50Mt in the late 2000s before hitting a near-50 year low in the 2010s in the wake of the 2008 financial crisis. The market then started to recover in the second half of the 2010s until Covid-19 came along. A report on the Spanish cement market to the start of 2021 that lays out the situation can be found in the February 2021 issue of Global Cement Magazine. The larger news stories since then have been Votorantim Cimentos’ growth in the market through its acquisitions of FYM and Cementos Balboa, and Çimsa Çimento’s final completion of its deal to buy the Buñol white cement plant from Cemex. Each of these stories involve an integrated cement plant changing ownership.

Looking back at Oficemen’s summary describing 2012 depicts a much different dwindling market. However, one commonality it shares with the association’s roundup for 2021 is that it complains about the country’s disadvantage in electricity costs compared to its neighbours. Back in 2012 this was framed as holding back exports. As Oficemen noted at the time it exported 5.9Mt of cement in 2012, less than half the 13Mt it exported in 1983. Jump forward to 2021 and exports are now 6.8Mt. Energy is still a key issue though. Now Oficemen’s president, José Manuel Cascajero Rodríguez, says that the sector’s production costs have increased by 25% since the latest round of electricity price rises began. He then compares the cost of energy intensive industry in Spain unfavourably against France and Germany and calls for a structural change in the Spanish electricity market to make prices more predictable. Cement producers elsewhere in Europe and beyond may share Oficemen’s concerns regard unpredictable energy prices over the last six months but electricity has been a particular issue for Spain for a long time. To take one recent local example, in November 2021 Cementos Cosmos said it was planning to scale down the production of clinker at its Córdoba cement plant as a result of the high cost of electricity.

The other issue that gets raised in Oficemen’s 2021 summary is competition from cement importers outside the European Union (EU) and the necessity of a border carbon adjustment mechanism (CBAM) to take in account carbon taxation for producers within Europe. To jump back a bit, back in May 2021 the EU Emissions trading Scheme (ETS) reached Euro50/t. Then in December 2021 Cembureau, the European cement association, published a calculation predicting that if the EU ETS CO₂ cost made it to Euro90/t then this could represent 12 - 15% of the production costs of cement producers. Well, as readers will have guessed, the EU ETS beat Euro90/t on 2 February 2022 and then rose to Euro96.7/t on 7 February 2022. Answers in an email for when readers think the EU ETS price will top Euro100/t.

All of the above feeds neatly into the week’s other big Spanish news story: Cemex and Synhelion have successfully produced clinker from concentrated solar radiation at a pilot unit at the Very High Concentration Solar Tower of IMDEA Energy near Madrid. It’s early days yet as the process needs to be scaled up but, make no mistake, this is a big story. An interview with the team behind Cemex and Synhelion’s solar concentration project can be found in the December 2020 issue of Global Cement Magazine for more information. The SOLPART (Solar-Heated Reactors for Industrials Production of Reactive Particulates) project in France did similar research a few years ago but it didn’t reach the 1500°C target required to reach the sintering phase where clumps of clinker form. US-based Heliogen has been trying to industrialise concentrated solar energy but not much has been heard about its cement-industry ambitions since it said it reached temperatures of about 1000°C in 2019.

The relevance of an eventual full-scale concentrated solar unit for the entire production line or just the preheater and/or calciner at a cement plant in Spain makes considerable sense. At a stroke energy costs are reduced, diverted to a renewable source and any desired CO₂ capture becomes, in theory, easier and cheaper. Cemex said in the interview with Global Cement Magazine that the tentative next step would be a pilot unit at a cement plant, although, candidate plants could be in the US or Mexico, as well as Spain. Another side of the drive to cut energy and carbon costs can also be seen in a couple of photovoltaic solar projects supplying cement plants that were announced in 2021 for Spanish plants run by Cemex and Cementos Cosmos.

We leave the Spanish cement sector in a growth phase but with plenty of challenges ahead, not least from electricity costs and the mounting cost of carbon. Yet in common with other countries in Europe the industry faces a high-wire balancing act between staying economically viable and inching towards net zero. It’s conceivable that an industrial scale concentrated solar unit at a cement plant in Spain by 2030 might steady the wobbles along the way.