Displaying items by tag: Export
Pakistan cement sales to grow by 28Mt by 2020 says association
09 January 2017Pakistan: The All Pakistan Cement Manufacturers Association expects local cement sales to grow by 26 – 28Mt by 2020. It made the forecast as part of a six- month review of the industry. Chairman Sayeed Saigol said that local sales grew by 8.6% year-on-year to 19.8Mt in the first half of the country’s financial year to 30 June 2017 from 18.2Mt in the same period in the previous period. Based on current growth trends he added that the industry would need to increase its production capacity. To this end it is increasing capacity to 72.3Mt/yr from the current capacity of 46Mt/yr.
Despite the anticipated growth in cement sales Saigol defended import duties to the countries on the grounds that the government benefits from taxation of the local industry. He has also urged the government to support the industry by placing an anti-dumping duty on Iranian cement. Exports of cement fell by 3.5% year-on-year to 2.91Mt from 3.02Mt with a particular fall in exports to Afghanistan.
Export tariff expected to hit Saudi Arabian cement profits
21 December 2016Saudi Arabia: New legislation requiring cement exporters to pay tariffs of up to US$35/t is expected to reduce profits. The new import tax is also expected to compound problems for exporters created by restrictions linked to the gradual lifting of a ban on exports, according to Mubasher financial website. Cement producers are expected to be encouraged to focus on domestic sales instead. Financial analyst Jasim Al-Joubran of Al-Jazirah Capital has forecast low profits for the industry in 2016 due to low government spending. However, he added that sales are expected to recover in the fourth quarter of 2016 followed by a recovery in 2018.
Vietnam cement exports set to fall in 2016
12 December 2016Vietnam: The Vietnam Building Material Association has predicted that revenue from cement exports is set to fall by 7% year-on-year to US$556m in 2016 from around 15Mt of cement and clinker. In the first 11 months of the year the country’s export volumes fell by 5.93% to 14Mt/yr. The decline has been blamed on competition from foreign companies inlcuding those in China, India, Pakistan and Thailand. The association also blamed the high cost of exports.
Belarus: The Belarusian Cement Company and Eurocement Group have signed a contract concerning deliveries of cement in 2017. In line with the agreement the deliveries will satisfy the demand for Belarusian cement on the Russian market. The deliveries in 2017 will be at least as large as in 2016, according to the Belarusian Telegraph Agency. The deal was signed by Eurocement Group President Mikhail Skorokhod, Director General of Belarusian Cement Plant Igor Lozhechnikov and Director General of Krichevcementnoshifer Vladimir Korchevsky.
Belarusian Architecture and Construction Minister Anatoly Cherny said that the Russian market is the key target market for Belarusian cement producers. He added that despite falling demand in Russia that the share of Belarusian cement on Russian Federation markets would grow larger.
Japan relies on cement exports
02 November 2016Two of Japan's largest cement producers have reported reduced domestic cement sales in the country this week. First, Taiheiyo Cement revised its forecast for its 2017 financial year, ending on 31 March 2017, bringing its estimated net sales down by 2.3%. Then, Ube Group reported that its cement sales had fallen by 7.2% year-on-year to US$1.05bn in the first half of its financial year. Both producers blamed poor weak demand locally, but Ube also cited a poor export market.
Graph 1: Domestic and export cement sales in Japan, 2006 - 2015. Source: Japanese Cement Association.
This last point is interesting because it differs from the latest data released by the Japanese Cement Association (JCA). As can be seen in Graph 1 JCA figures show that exports of cement have been rising since 2013. So far this trend looks likely to continue in 2016. Ube's different experience may arise from its market mix and its distribution of cement plants and transport infrastructure. Both of its cement plants are based in the south of the country. Commentators have attributed the boost in exports to the devaluation of the Yen in 2015 as well as strong brand perception overseas. Unfortunately, this overall rise in exports has been matched by a fall in domestic sales at the same time and this is causing a headache for the major producers. Production too has started to drop since 2014 (Graph 2).
Graph 2: Cement production in Japan, 2006 - 2015. Source: Japanese Cement Association.
Japan's cement market is dominated by four producers - Taiheiyo Group, Mitsubishi Materials, Ube Industries and Sumitomo Osaka Cement - which hold nearly three quarters of the nation's production capacity between them. According to Global Cement Directory 2016 data, Taiheiyo Cement and its subsidiaries is the market leader with over 30% market share with the other three holding 10 - 20% each.
Graph 3: Cement production capacity share in Japan (Mt). Source: Global Cement Directory 2016.
Taiheiyo's downgraded forecast follows poor first quarter results, in which its net sales for its cement business fell by 16% to US$1.19bn. This follows a slight rise in net sales for its cement business in its 2016 financial year due to a boost in sales from its overseas subsidiaries, particularly in the US, that surpass a fall in domestic sales. Sales volumes were 14.7Mt domestically and 4Mt in exports in 2016. Mitsubishi Materials has posted a similar picture with cement sales and profits rising in 2016 before suffering in the first quarter of 2017. Mitsubishi Materials blamed the poor market on a delay in construction work mainly due to labour shortages and sluggish growth in demand from the public sector. Ditto Sumitomo Osaka Cement.
As highlighted by such decision as Tokyo Cement's move to resume exporting clinker to Sri Lanka in early 2015, Japan's cement industry is working hard to compensate for falling demand at home. Increasing exports in Asia Pacific among other massive exporters such as China, Vietnam and South Korea is impressive, although the prominent foothold by Japanese companies in the recovering US market may offer some advantage here. On-going weak demand in China though cuts out one major market for Chinese exporters. However, being a major exporter in a region of major cement producers must be a concern. Although commentators such as Ad Ligthart dismiss the chances of China flooding the world with cheap cement, if they are wrong and Japan continues its reliance on exports it may find itself in deep water. The other risk is if the US authorities decide to get tougher on foreign exports it may knock out one more market for Japanese exports. Too much reliance on exports is always dangerous. In this context, it’s no surprise that Japanese cement producers are blaming the government for insufficient infrastructure spending.
Vietnam cement and clinker exports drop by 16.6% to 11.3Mt in first nine months of 2016
20 October 2016Vietnam: Vietnam’s exports of cement and clinker fell by 16.6% year-on-year to 11.3Mt in the first nine months of 2016. The value of the exports fell by 17.2% to US$429.3m. The Philippines, Bangladesh, Taiwan and Mozambique were among major importers of Vietnamese clinker and cement in the nine-month period, according to data from the Ministry of Industry and Trade. Local cement producers have faced competition from those in Thailand and China.
Tajikistan starts to export cement to Uzbekistan in 2016
18 October 2016Tajikistan: Tajikistan began to export cement to Uzbekistan in 2016, according to the Ministry of Industry of Tajikistan. 162,000t of cement were sent to the neighbouring country in the first nine months of the year. Cement has also been sold to Afghanistan. Previously Tajikistan exported cement only to Afghanistan and Kyrgyzstan with the majority going to the former. Cement production in Tajikistan has increased by 37% year-on-year to 1.51Mt in the first nine months of 2016.
Vietnam cement sales may reach 95Mt/yr by 2020
22 September 2016Vietnam: Vietnam’s cement sales are predicted to reach 95Mt by 2020 says Nguyen Quang Cung, chairman of the Vietnam Cement Association (VNCA). The total will include 80Mt/yr of domestic sales and 15Mt/yr of clinker and cement exports, according to the Vietnam News Agency.
Vietnam’s domestic cement sales are predicted to rise by 5 - 5.5Mt/yr to hit 80Mt by 2020. The country’s cement and clinker exports will stay at 15Mt/yr, Cung added, noting that Vietnam will be able to satisfy the demand. He also predicted that the country’s cement sales will reach 77Mt in 2016, including of 60Mt of domestic sales and 15.5 – 17Mt of exports.
The Ministry of Construction previously forecast that Vietnam’s sales of cement and clinker would rise 4 - 7% year-on-year to 75 – 77Mt in 2016 despite on-going economic problems.
Indonesia: The Indonesia Cement Association (ASI) has urged the government to restrict the issuance of new licenses as the country's cement industry has been experiencing oversupply. Widodo Santoso, chairman of the ASI, told an industry seminar that there are 13 cement producers in the country with total production capacity of 92Mt/yr but that local demand is only reaching 63 – 65Mt/yr, according to Cogencis.
"The government should restrict investment in cement industry by leading the new cement investment to outside Java where there is no cement industry," said Santoso said.
Santoso added that 10 cement plants opened in 2015 and that four more are set to start operation in 2016. By 2017 the country’s cement production capacity may surpass 100Mt/yr. He recommended that local producers increase their exports. The ASI estimates that exports will increase to 2Mt/yr in 2016 from 0.5Mt/yr in 2015. Countries such as Bangladesh, Sri Lanka, Australia, African countries, and West Asian countries are among the destinations.
Arawak Cement reaches record exports in June 2016
28 July 2016Barbados: Arawak Cement has recorded its highest exports in three years when it exported 20,000t of cement in June 2016. The figure contributed a 27% year-on-year increase in exports to 90,000t for the first half of 2016, according to the Nation News newspaper. The cement producer said that the boost in export sales was due to improvements to its jetty and dust emissions control systems at its St Lucy plant. The changes have allowed it to improve its cement loading rates and receive larger ships.