Displaying items by tag: Export
Ukraine: Cement production has increased by 10.5% year-on-year, to 3.19Mt/yr according to Roman Skilsky, CEO of the Ukrcement cement producers' association. Skilsky expects for the country’s annual cement production to grow by 10% to over 9Mt in 2016 in comments made to Interfax-Ukraine.
Exports of cement grew by 71% to 62,700t in January to March 2016. However, Skilsky attributed the rise to the introduction of various restrictions by key exports markets including Moldova and Belarus. Skilsky also said that the introduction of European standards for cement production in Ukraine could help to restrict counterfeit products on the market.
Dyckerhoff Cement Ukraine, HeidelbergCement Ukraine, Ivano-Frankivskcement, Eurocement-Ukraine, Podilsky Cement, Mykolaivcement and Cement LLC (part of CRH Group) are all members of Ukrcement.
Qatar to get through 5.7Mt of cement in 2017
11 July 2016Qatar/Saudi Arabia: Saudi Arabia's decision to lift its cement export ban may help to meet Qatar's growing demand ahead of the FIFA World Cup 2022. Official data suggests that the peak demand for cement from Qatar's thriving construction and infrastructure industries is expected to reach 5.7Mt in 2017. Due to its population of around 2.2 million, this represents an incredible 2600kg/capita.
The Saudi government previously imposed a ban on cement exports in 2008 to push prices down and accommodate demand from large government-funded infrastructure projects, although some companies were allowed to export at prices lower than those in the local market.
According to market analysts, strong infrastructure spending by the Qatar government on infrastructure development will continue to boost demand for the cement sector. Huge projects are in the pipeline, including the Doha Metro, World Cup stadiums, roads and flyovers and sanitary works.
Eurocement targeting exports to Denmark and UK
16 June 2016Russia: Eurocement Group has said that it is targeting exports of cement at Denmark and the UK. Company chief executive officer Mikhail Skorokhod said that ‘contracts in Denmark and Britain are forthcoming’ in an interview with PricewaterhouseCoopers that was recorded ahead of the St Petersburg International Economic Forum.
Exports by Eurocement to Finland and the Baltic states have been taking place since the end of 2015 with a gradual increase in sales volumes. In Finland the cement producer has a market share of 5%. Skorokhod added that the devaluation of the Russian Ruble has opened up export opportunities for the company. However, the company has not disclosed the volume of its exports, according to Interfax.
The overall volume of cement exports from Russia in January to April 2016 reached 230,000t with production of 13.6Mt, according to data from the Union of Cement Producers.
Pakistan: The All Pakistan Cement Manufacturers Association (APCMA) has warned that an increase in Federal Excise Duty on cement may increase the levels of illegal imports of Iranian cement. The increase in the tax was announced in the 2016 – 2017 federal budget. Instead, the association wants the government to reduce taxes on cement to promote local dispatches, according to local media.
According to the latest data, issued by the APCMA, the cement industry dispatched 35.5Mt of cement between July 2015 and May 2016, an increase of 106% year-on-year from the previous period. However, exports to countries other than India, fell during this period.
Shivam Cement receives Indian export certificate
08 June 2016Nepal: Shivam Cement has received an ISI certificate, allowing it to export cement to India. The company said in a statement that it is now one of the few cement producers in Nepal that can export cement to India.
Indonesia: Holcim Indonesia plans to focus its exports of cement towards Australia, Sri Lanka and Bangladesh in 2016 amidst unstable demand at home. Holcim Indonesia’s chief financial officer Mark Schmidt emphasised the company’s increasing desire to export more whilst not mentioning any specific export sales targets in comments that were reported by the Jakarta Post.
Gary Schutz, the president-director of Holcim Indonesia, reinforced the importance of government spending plants towards meeting the country’s cement demand in a press release published after the company’s May 2016 annual general meeting. “We are concerned that government spending plans – especially those for infrastructure – should be realised on time and in full this year. Infrastructure alongside housing development are both vital catalysts in achieving planned growth rates for the economy. It is equally important in order that Indonesia stays competitive with in the Association of Southeast Asian Nations (ASEAN) Economic Community.”
The Indonesian subsidiary of LafargeHolcim increased its cement production capacity to 15Mt/yr from 11Mt/yr after acquiring Lafarge Cement Indonesia and starting operations at the Tuban II plant in East Java.
Saudi Arabia: A lifting of the Saudi Arabian export ban on cement is unlikely to help local cement producers much according to a research report issued by Arqaam Capital. The investment bank has predicted that export volumes are likely to be restricted to 20% of output and possibly subjected to an export tax. This tax, equivalent to fuel subsidies Saudi producers benefit from, and transport costs would reduce the price advantage Saudi producers hold over international competitors.
"The domestic supply situation remains difficult. Sector clinker stocks have not budged since July 2014, remaining at nearly 21Mt as of March 2016 equivalent to four months of output. This, combined with existing capacity of 70Mt, and incoming capacity of 7Mt due in the 2016, equates to total potential capacity of around 100Mt. This suggests a substantial near/medium term surplus of 60%, given stalled domestic contracts and the fact that few export markets are currently viable," said Mohammed Kamal, Executive Director, Equity Research at Arqaam Capital.
Arqaam Capital view Yemen, Egypt, Qatar, Jordan, UAE, Bahrain, East Africa and Iraq as potential export destinations. However, on a Freight On Board (FOB) price basis and by taking export taxes into account, only Yemen, Iraq, and Jordan are seen as viable export destinations. This then narrows the list of potential Saudi cement exporters to Southern Cement, Najran, Tabuk, Al Jouf and Northern Cement.
Iran: Iran cement exports fell by 20% year-on-year to 18.5Mt in the financial year that ended on 20 March 2016 according to Abdolreza Sheikhan, secretary of Iran's Cement Industry Employers Association. In comments to the Islamic Republic News Agency Sheikhan blamed the fall in exports on security problems in the region including Iran’s main export market in Iraq. In the previous financial year Iraq represented 60% of Iran’s export market for cement.
Sheikhan noted that Iraq increased its tariffs on imports of cement to US$13/t from US$4/t in the previous year and raised tariffs to US$72/t in the latest financial year. He added that Azerbaijan had increased its cement production capacity that had also reduced its reliance on Iranian cement exports.
Pakistan: Cement sales are up in Pakistan, with All Pakistan Cement Manufacturers Association Chairman Muhammad Ali Tabba claiming that the sector is using 95% of its installed capacity. He said that strong export growth in March 2016 was ‘very encouraging’ and had been major factor behind the increased sales. Tabba highlighted new capacity being brought on by DG Khan, Lucky Cement, Cherat Cement and Attock Cement as indicative of the sector’s confidence in the Pakistani economy
Despite this, the sector remains accused of forming a cartel to keep cement prices high. Tabba rebuffed the claims, saying, “The industry is neither managing despatches nor the prices and is operating on the principles of free market economy.”
Saudi Arabia reported to have lifted cement export ban
13 April 2016Saudi Arabia: Saudi Arabia has lifted a ban on exporting cement, the chief executive of Yanbu Cement has said to local press. Ahmed bin Abduh Zugail, who is also the deputy head of the Saudi national committee of cement companies, added that cement companies have welcomed the relaxation of the ban. However, full details of the new regulations are yet to be released by the Ministry of Commerce.
Local press reported in late November 2015 that government bodies were considering cutting the ban on cement exports. The ban was originally introduced in Saudi Arabia to keep prices down and production flowing for large infrastructure projects built using oil revenue.