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News Consumption

Displaying items by tag: Consumption

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Indian cement demand to rise to 440Mt in 2024 financial year

22 September 2023

India: Ratings agency Crisil has forecast all-Indian cement consumption growth of 11% year-on-year to 440Mt during the current financial year, which ends on 31 March 2024. Crisil attributed this to a 51% year-on-year rise in infrastructure spending, to US$6.75bn throughout the year. Press Trust of India News has reported that infrastructure projects currently account for 30% of all cement consumption.

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Holcim Mexico supplying 170,000t/month of cement for Tren Maya railway project

22 September 2023

Mexico: Holcim Mexico says that its supply of cement to the government’s Tren Maya railway project is 170,000t/month. This corresponds to 50 – 60% of its total production volumes. Local press has reported that construction of the 1500km-long Tren Maya railway will consume 1Mm3 of concrete. Holcim supplied its cement for Sections 1 – 3 of the line between 2020 and 2022. It is currently supplying Section 5, which is 50% complete. The cement comes from the company’s Orizaba, Veracruz, plant; its Macuspana, Tabasco, plant and its Mérida, Yucatán, plant.

Holcim Mexico’s infrastructure development manager Fernando Roldan said "Our participation has been a challenge, but the relationship we have with the suppliers and with the construction companies in charge of the railway has allowed us to meet the requirements."

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Peruvian cement demand to decline in 2023

21 September 2023

Peru: The Central Reserve Bank of Peru expects national cement consumption to fall by 3.7% in 2023. The Gestión newspaper has reported that demand declined month-on-month over seven successive months up to August 2023. It fell by a double-digit figure year-on-year in the first half of 2023. In August 2023, imports of cement declined by 95% month-on-month, to 2000t from 38,000t.

Peruvian Chamber of Construction executive director Guido Valdivia said "The first factor to consider is El Niño. If it starts in November 2023, it will affect construction output in 2023; if it is postponed to 2024, we expect a drop of only 3.3% in 2023.″ The Peruvian Property Developers’ Association (ASEI) forecast a 4% drop in construction output in 2023, followed by growth of 3.2% in 2024.

Grupo Gloria’s vice president, cement, concrete and lime, Luis Díaz told investors that the gap between Peruvian cement production and consumption will close ‘substantially’ during the remaining months of 2023, due to raised demand from infrastructure projects.

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Sumitomo Osaka Cement to raise sales in profit-making first half of 2024 financial year

08 August 2023

Japan: Sumitomo Osaka Cement says that it expects sales to rise by 14% year-on-year to US$761m during the first half of the 2024 financial year. Nikkei Financial Summary News has reported that the producer expects a drop in its cement volumes, offset by price hikes. Currency effects will also impact its result. Meanwhile, coal prices remained lower than expected. The company expects to record a net profit of US$26.6m, compared to a loss of US$20.4m in the first half of the 2023 financial year. It previously forecast a US$13.3m loss.

Sumitomo Osaka Cement recorded US$52.8m in sales in the first quarter of the 2024 financial year (1 April - 30 June 2023). This corresponds to year-on-year growth of 16%. Nonetheless, it made a net loss of US$7.6m.

Throughout the first quarter of the 2024 financial year, Japanese cement despatches fell by 15% to 10.1Mt. Exports declined most sharply, by 43%, to 1.51Mt.

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Moroccan cement industry delivers 6.98Mt of cement in first seven months of 2023

07 August 2023

Morocco: Members of the Professional Association of Cement Producers (APC) delivered a total of 6.98Mt of cement during the first seven months of 2023. This corresponds to a year-on-year rise of 2.1%, compared with seven-month 2022 levels. Agence Marocaine de Presse News has reported that ready-mix concrete plants consumed 4.29Mt (61%), and precast concrete plants 1.37Mt (20%), of cement deliveries. Producers despatched 367,000t (5.3%) of cement to infrastructure construction sites, and 271,000t (3.9%) to other building sites.

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US cement consumption falls in first five months of 2023

31 July 2023

US: The United States Geological Survey has reported that the US consumed 40.5Mt-worth of cement shipments in the first five months of 2023. This corresponds to a 4.3% year-on-year fall from five-month 2022 volumes of 41.5Mt. Blended cement, primarily Type IL Portland limestone cement (PLC), accounted for 37% of shipments, compared to 16% in the corresponding period of 2022. Total demand rose by 4.3% year-on-year and by 19% month-on-month to 10.2Mt in May 2023. Imports of cement and clinker totalled 10.5Mt. The leading source of imported cement and clinker were Türkiye, which supplied 3.34Mt (32%), Canada, which supplied 1.58Mt (15%), and Vietnam, which supplied 1.3Mt (13%).

US production of clinker dropped by 2.1% to 29.5Mt in the first five months of 2023, from 30.1Mt a year earlier.

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Vietnamese cement oversupply to drop to 73% in 2023

27 July 2023

Vietnam: State-owned Vietnam Cement Industry Corporation (Vicem) has projected that national full-year cement production will rise by 1.7% to 118Mt. Meanwhile, the cement market leader believes that demand will rise by 5.4% to 68.3Mt in 2023. This corresponds to an oversupply of 73%, compared to 78% in 2022.

Việt Nam News has reported that the government recorded a 7% year-on-year decline in Vietnamese cement production to 43Mt and a 10% drop in demand to 39Mt in the first half of 2023.

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Spanish cement consumption grows slightly in first half of 2023

18 July 2023

Spain: The Spanish cement association, Oficemen, recorded total national cement consumption of 7.54Mt throughout the first half of 2023. This corresponds to a 0.3% year-on-year rise from first-half 2022 levels. Meanwhile, first-half exports fell by 2.3% year-on-year to 2.84Mt.

The Cinco Días newspaper has reported that Oficemen general director Aniceto Zaragoza said “The first half of 2023 has closed with zero growth, in line with our forecasts at the beginning of the year. The confluence of three elections, which will end with the general elections on 23 July 2023, is an unusual circumstance, which has affected not only investments in public works but also at the business level." Zaragoza added that construction decision-making had 'already slowed down by itself due to the current international situation.'

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Indonesian government instigates moratorium on new cement plants as capacity utilisation reaches 51% in first half of 2023

17 July 2023

Indonesia: The Indonesian cement industry produced 29.3Mt of cement during the first half of 2023. This corresponds to a utilisation rate of 51% across an installed national capacity of 116Mt/yr. Throughout 2022, the industry produced 64Mt of cement and recorded a utilisation rate of 55%. Local capacity utilisation levels in the first half of 2023 were as low as 45% in some regions. Only Bali-Nusa Tenggara Region and Maluku-Papua Region did not suffer from overcapacity. National demand was 28Mt in the first half of 2023 and 63Mt throughout 2022. Meanwhile, first-half exports rose by 12% year-on-year in opening six months of 2023.

Indonesia Government News has reported that the Ministry of Industry has instigated a moratorium on investments in the construction of new cement capacity. Director general Ignatius Warsito said "These efforts can provide legal certainty for cement industry players in the country, as well as support competitiveness." Warsito noted the health of Indonesia's existing export markets for cement, but noted the uncertainty of the industry's coal supply and its price. Coal currently accounts for 40% of Indonesian cement's fuel consumption by value.

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Asia Cement presents 2050 net zero strategy

06 July 2023

China: Asia Cement has launched its 2050 decarbonisation strategy, entitled 'Net-Zero Carbon Emissions By 2050 - Asia Cement Advanced Deployment.' The strategy consists of multiple pillars, namely 'alternative fuels,' 'reducing cement's clinker factor,' 'increasing renewable energy reliance' and 'carbon capture.'

During 2022, Asia Cement reduced its limestone, clay, iron and sand consumption by 266,000t, its coal consumption by 17,000t and its gypsum consumption by 56,000t year-on-year. This eliminated 95,100t of CO2 emissions throughout the year, according to the producer.

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