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One big story in India in recent weeks has been the start of action by the central government to tackle rising cement prices. First it reduced tax duties on petrol and diesel in late May 2022. Finance minister Nirmala Sitharaman also said that they were looking at ways of improving the availability of cement in the country, including better logistics, to help lower its cost. A delay to a change in the Goods and Services Tax (GST) rate structure is also being considered to slow inflation generally. Local press then reported a few days later that the government had set up a panel to explore ways of reducing the price of cement by distributing supplies better around the country. Specifically, it was talking to the South India Cement Manufacturers’ Association to work out ways for their members to meet the rising demand in other parts of the country. Reported options included looking at better use of rail and sea connections.

Chart 1: Map of Indian regions showing integrated/clinker production capacity per capita. Note: the chart does not include standalone grinding plant capacity. Source: Global Cement Directory, Indian census data. Map image adapted from Filpro CC BY-SA 4.0.

The map above (Chart 1) summarises the general problem the country faces from a clinker production point of view. More clinker can be produced in the south of the country than elsewhere. This map is partly a reflection where the limestone reserves are. However, it does not show that the East region of India has a higher concentration of cement grinding plants than elsewhere. Additionally, a number of new integrated/clinker plants have been built in the East and more have been proposed. The data in Chart 1 suggests that India has an integrated production capacity of 312kg/capita nationally. This compares to a cement consumption of 200 – 250kg/capita as reported by the ratings agency Crisil.

Data from Crisil indicates that cement prices grew by 9% from the start of 2021 to March 2022. A similar rise of 8.1% month-on-month was reported in April 2022. It is not a direct comparison but retail inflation in India was reported as being 7.8% in April 2022. The cause of this has been blamed on a general tightening in energy supplies in the autumn of 2021 followed by the effects of the war in Ukraine that started in early 2022. Rising international coal and petcoke prices have made manufacturing cement more expensive. Growing petrol and diesel prices have made moving it around costlier still. Looking at the cement market generally, Crisil noted that demand for cement grew sharply in the first half of the 2022 financial year but then slowed in the second half due to poor weather, issues with sand supply and a labour shortage. The ratings agency has forecast stable growth in the 2023 financial year but with the caveat that the mounting costs of construction, including building materials, could dent this.

The fundamentals for the world’s second largest cement market look good as Adani Group’s recent deal to buy Holcim’s Indian assets for US$6.34bn attests. This won’t be much comfort for end-users though who are watching the price of cement rocket upwards. Yet how far the central government will be able to help the southern cement producers move their wares around more easily remain to be seen. If it succeeds, it may slow the rise in prices but it seems unlikely to halt it. The reaction of the more northerly producers is also key, since one option they have is to slacken their own price increases by just enough to fight off the new competition. Already they are facing the dilemma of raising their prices to cover input costs versus the effect this may have on overall demand. All of this looks set to put pressure on the producers’ margins. Indian cement prices look set to go up whatever happens next, making everyone unhappy. Some may be more unhappy than others.

Argentina: Holcim Argentina has appointed Julio Asnal as its Director of Sales and Integral Solutions. He will lead the company’s sales strategy.

Asnal’s prior professional experience includes working as a regional director for Danone and as a commercial director for Coca-Cola FEMSA, where he also held marketing and strategic planning roles. Most recently he has worked in management positions for Promedon over the last decade. He holds a bachelor’s degree in Business Administration from the National University of Córdoba and a master's degree in Business Administration from IAE in Buenos Aires.

Germany: Beumer Group has appointed Rudolf Hausladen as its chief executive officer (CEO). He succeeds Christoph Beumer, who has been in post since 2000. Beumer will remain a member of the management board until the end of 2022 and then move to the advisory board.

Hausladen, aged 52 years, holds a university degree in mechanical engineering as well as a master’s in business administration (MBA). Previously he worked in management positions for logistics companies including Swisslog and Gebhardt Logistic Solutions. His most recent position outside of Beumer was as the group CEO of electronic company ERNI.

Sweden: Cementa has completed its feasibility study for a carbon capture and storage (CCS) system at Slite cement plant in Gotland. The producer says that it will now proceed to the next stage of the project, with the aim of producing climate positive cement from 2030. Sister company Norcem is currently building a 400,000t/yr CCS system at its Brevik cement plant in Norway. Cementa says that its new system will have four times the capacity of that at the Brevik plant, and reduce Sweden's total CO₂ emissions by 3%. One or more of 'several storage solutions' currently under development in the North Sea will serve to store the plant's captured CO₂ emissions.

General manager Giv Brantenberg said "With the knowledge we have built up through our pioneering project at Norcem in Brevik, we now have a good picture of how to move forward in Sweden. The Nordic countries have what it takes to lead the climate transition in the construction sector."

UK: Hanson plans to install a C-Capture solvent-based carbon capture system at its Ketton cement plant in Rutland. The producer says that the technology reduces energy requirements per tonne of CO₂ by 40% compared to other capture systems.

Chief executive officer Simon Wills said “Carbon capture is a critical part of our strategy to decarbonise cement production, and essential if we are to reach net zero carbon by 2050. If successful, the C-Capture process has the potential to be rolled-out across other sites across the HeidelbergCement Group.”

Malaysia: Hume Cement Industries Berhad recorded sales of US$117m in the first nine months of 2022, up by 4.7% year-on-year from US$112m. It recorded a loss for the period of US$415,000, down by 82% from US$2.27m. In the third quarter of 2022, Hume Cement Industries Berhad recorded a profit of US$438,000, compared to a US$2.69m loss in the third quarter of 2021.

Chile: Cbb's first-quarter operating income was US$93.5m in 2022, up by 14% year-on-year from US$81.7m the first quarter of 2021. Nonetheless, the company's net profit fell by 89% to US$573,000 from US$5.04m.

Namibia: The Namibian government has granted Whale Rock Cement permission to resume production of its Cheetah brand cement at its Otjiwarongo grinding plant. Authorities suspended operations at the plant on 10 May 2022.Labour Ministry acting executive director Lydia Indombo cited multiple contraventions of occupational safety regulations, including failure to issue personal protective equipment (PPE), failure to maintain good housekeeping, lack of sanitary conveniences and lack of first aid equipment, as the cause of the suspension.

Indombo said "The ministry conducted verification inspections on 16 and 20 May 2022 to evaluate the compliance on the identified shortfalls and is satisfied with the level of compliance." She added that the ministry had recommended the resumption of production activities.

Zimbabwe: Germany-based Gebr. Pfeiffer says that a new MVR 3070 C-4 mill for cement grinding is due to be commissioned at Holcim Zimbabwe’s integrated plant at Manresa near Harare. The order was handled by the Chinese contractor CBMI.

The roof at the plant collapsed over a cement mill in October 2021 leading to a reduction in production volumes at the plant. The mills were restarted in February 2022 but one of the one of the existing cement ball mills was decommissioned. This mill is being replaced by the new vertical roller mill supplied by Gebr. Pfeiffer. It is expected to double the plant’s cement production capacity after it is commissioned in the second quarter of 2022.

US: Buzzi Unicem USA plans to switch from producing Ordinary Portland Cement (OPC) to Portland Limestone Cement (PLC) at all of its plants by the end of 2022. It said that it intends to transition from traditional ASTM C150 type I and II (OPC) cements in favour of ASTM C595 type IL cement (PLC). So far its Cape Girardeau and Festus plants in Missouri, Greencastle plant in Indiana, Maryneal plant in Texas and Pryor plant in Oklahoma have already completed the move to the PLC. The San Antonio plant in Texas will complete its transition in June 2022, the Chattanooga plant in Tennessee will switch its product line by September 2022 and the Stockertown cement plant in Pennsylvania will complete its conversion later in 2022. The company added that its engineers will continue working to increase the limestone content in cement by up to the permitted 15% and develop High Early Limestone cement, along with other new cement products with reduced clinker content.