Displaying items by tag: Export

Pakistan: Data from the All Pakistan Cement Manufacturers Association (APCMA) show that exports have been in decline since July 2015. Exports declined by 24% year-on-year to 3.4Mt in the seven month period between July 2015 and January 2016 compared to 4.5Mt in the same period in the previous year. However, domestic cement consumption has risen in the same period, according to local press.

"A substantial reduction in the exports has drastically affected foreign exchange earnings of the country and cement makers are finding it difficult to maintain their existence in export markets because of high costs of business in Pakistan and the absence of export incentives," said an APCMA spokesman.

Cement despatches between July 2015 and January 2016 increased by 6.4% year-on-year to about 21Mt compared to about 20Mt previously. Cement plants sales volumes in the north of the country grew by 14% year-on-year to 14.8Mt from 13Mt. These producers saw exports fall by 22.4% to 2.2Mt from 2.8Mt. Cement plant sales volumes in the south grew by 23% year-on-year to 3Mt from 2.5Mt. These producers saw exports fall by 29.2% to 29.2% from 1.8Mt.

The APCMA recommended that the government should impose an additional 20% duty for cement imports alongside the existing customs duty to protect the local cement industry. It added that taxes on energy inputs such as a gas and coal should be reduced and measures put in place to make exports more competitive.

Vietnam: Around 74 – 75Mt of cement is expected to be sold in 2016, some 3Mt more than that in 2015. In 2016, no new plants will be put into operation, as the capacity of current plants will meet demands.

According to Le Van Toi, Head of the Building Materials Department under the Ministry of Construction, total output of cement will rise in 2016, as a plant of the Cong Thanh Cement Group increased its capacity by 3.6Mt/yr in late 2015.

In 2015, two cement projects were put into operation, raising the number of production lines to 76 with a total designed capacity of 81.5Mt/yr. Over 72Mt of cement is estimated to have been sold in 2015, up by 3% compared to 2014. Some 16.3Mt was shipped abroad, down by 17.3% year-on-year, but domestic consumption rose by 11.1% to 56.5Mt.

Canada: Cement manufacturers produced 1.11Mt of cement products in November 2015, down by 12.2% compared to October 2015. Domestic cement shipments fell by 15% from October 2015 to 1.08Mt in November 2015. Including imports, shipments were down by 19.9% to 1.10Mt.

Tajikistan: Tajikistan has reportedly started to export cement to neighbouring Afghanistan.

According to the press centre of the Customs Service under the Government of Tajikistan, 12 trucks carrying 370t of cement proceeded via the Panji Poyon border crossing on the Tajik-Afghan border in late December 2015.

Huaxin Gayur Cement Co., Ltd in Yovon, Khatlon reportedly signed an agreement with Afghanistan's construction company Shamal Sharq in early December 2015 to supply 500t of cement to Afghanistan.

Democratic Republic of Congo/Zambia: Lafarge Zambia and Zambia Railways Limited (ZRL) have collaborated to increase cement exports to the Democratic Republic of Congo (DRC).

A policy directive is being followed by the government in order to increase exports and help stabilise the local currency. Lafarge will begin to export 400t/week of cement to the DRC in 2016 and will multiply its exports to Malawi and the DRC by a factor of four. Lafarge has become the biggest user of rail in the country and the first cement producer to be fully-associated.

Pakistan: The Ministry of Commerce has initiated World Trade Organisation (WTO) dispute settlement proceedings to fight South African anti-dumping duties on cement from Pakistan. The basis of Pakistan's argument is that the injury determination mechanism followed by South African authorities (ITAC) is flawed and does not reflect true analysis of the situation.

The Pakistan challenge has raised the issue that the South African authorities used an extended period of investigation of four years for causation analysis and didn't properly examine the evidence in the light of trends over that period. In addition, Pakistan considers that South Africa failed to examine the relationship between the alleged dumping and the worsening of the condition of the domestic industry especially by failing to consider the effects of the decartelization of the domestic cement producers. It also accuses South Africa of not properly examining the entire product under investigation and instead limiting its injury analysis to bagged cement and disregarded sales by the domestic industry of the bulk cement. Finally, the challenge has pointed out that the South African authorities didn't provide a fair opportunity to Pakistani cement exporters to defend their case, denying access to the trade statistics.

In May 2015 South Africa imposed various rates of duties on Pakistani cement exports ranging from 15 – 68% plus anti-dumping duty on the import of Pakistani cement. Since March 2015 Pakistan has been pursuing the matter on a legal and diplomatic basis.

Pakistan: Cement exports from Pakistan fell by 36% year-on-year to 467,000t in September 2015, as the import duty by South Africa took a heavy toll on its exports.

"Around 45 – 50% of total cement exports were destined for South Africa before the duty was imposed," said Sheikh Adeel, Senior Manager of Sales and Marketing at Maple Leaf Cement. South Africa has imposed duty as high as 77% on Pakistan's cements. Adeel said that the drop in exports has adversely affected exporters in Punjab. The transportation cost from Punjab to Karachi Port also rose by US$20/t.

Another industry official said that the industry is not utilising its production capacity. "There is enough idle capacity. The government should step in to support the industry to export surplus volumes, otherwise cement exports will continue to decline in the coming months," said Shahzad Ahmed, a spokesman of the All Pakistan Cement Manufacturers Association (APCMA). "We expect the government to announce export incentives for the cement industry."

In September 2014, cement exports stood at 730,000t, according to APCMA data. Total cement dispatches were recorded at 2.95Mt in September 2015 compared to 3.15Mt in September 2014, showing a cut of 6.34%. The industry data showed that cement dispatches to domestic markets were 2.48Mt in September 2015 compared to 2.42Mt in September 2014, up by 2.6%.

The local industry has been demanding that the government curb cement imports from Iran, which they said is eating into local share. "The industry expects the government to take effective steps to stop the penetration of Iranian cement in Pakistani markets through massive under invoicing and/or mis-declaration," said Ahmed. He added that the mills in the south suffered more than those operating in northern part of the country.

In the south, domestic cement dispatches declined to 399,581t in September 2015 from 431,133t in September 2014. Domestic consumption in the north, however, rose to 2.08Mt in September 2015 from 1.99Mt in September 2014. Ahmed said that domestic dispatches in the north were nominally higher than the 2.02Mt of consumption in September 2015. "This shows that the pace of construction in the north has not been hit as badly as in the south," he said. The export decline was almost the same both in north and south. Cement exports from the north declined to 306,564t in September 2015 from 480,025t in September 2014. Exports from the south dipped to 160,698t in September 2015 from 249,906t in September 2014.

Vietnam: Consumption of cement in Vietnam between 1 January 2015 to 30 September 2015 rose by 3% year-on-year to 52.1Mt compared to the same period of 2014, according to the Ministry of Construction. The ministry's Building Material Department said 40.3Mt of cement were sold on the domestic market, a year-on-year increase of 8%, while export volumes fell by 12% to 11.9Mt.

Despite the rise in the first nine months, cement consumption in September 2015 fell by 9% to 5.4Mt. 4.3Mt went to the domestic market, 11% less than in August 2015. The reduction in total consumption volume of cement in September 2015 was stated to be due to the impact of the rains and the 'ghost month' when people often avoid starting construction projects.

Experts expect cement consumption on the domestic market to be better by the year-end when the construction season begins. However, the cement industry will find it difficult to export cement by the year-end because other cement exporters in the region are set to increase their volumes.

Le Van Toi, Head of the Building Material Department, said that the enterprises should promote domestic consumption of cement and then improve competitive ability of cement products for exports.

Dominican Republic/Haiti: Cementos Andino, based in the Dominican Republic, has reported that it will register extra costs of US$44,189/month due to a Haitian ban on cement entering the country overland. Nelson Bello, president of Cementos Andino, explained that maritime transport will increase costs, due to unloading and handling services at ports, among other activities.

Cementos Andino exported 458,818t of cement between 2006 and August 2015, generating US$48.4m. Panama and Haiti were the main destinations.

Iran: Iran is gradually losing its domestic and foreign cement markets, according to Abdolreza Sheikhan, secretary of Iran's Cement Industry Employers Association. Iran's cement industry has lost some 8% of its domestic market and 20% of its export markets in the first five months of current fiscal year (21 March 2015 to 22 August 2015).

"Cement supply and demand is not balanced in the market and this has created problems for producers," said Sheikhan. However he did not disclose exact statistics about the country's cement sales. However, each cement producing plant is permitted to store clinker equal to two months output. This means that up to 5Mt of surplus clinker could be stored in the country at any one time.