Displaying items by tag: Italy

Cement imports were one of the themes in this week’s news, with stories on the topic from South Africa and Ukraine. The former concerned the latest chapter in that industry’s saga on slowing down imports. The International Trade Administration Commission (ITAC) has started a review on tariffs imposed on cement from Pakistan that were introduced in 2015.

Local producers in South Africa have experienced mixed fortunes since 2015, such as PPC and AfriSam’s failed merger attempt or the introduction of a local carbon tax, and were starting to complain again about imports even before the effects of coronavirus in 2020. This led the Concrete Institute to lobby ITAC in 2019 about rising imports from other nations, principally Vietnam and China.

Back in 2013 cement imports from Pakistan to South Africa were 1.1Mt. This represented the vast majority of all imports to the country. Tariffs of 14 – 77% were imposed on Pakistan-based exporters in mid-2015, initially for six months, but this was then extended. Roughly a year later in mid-to-late 2016, Sephaku Holdings said that imports of cement had ‘significantly’ declined on a year-on-year basis, particularly from Pakistan. By the end of June 2016 approximately 0.16Mt had been imported compared to 0.5Mt in the previous period. However, it noted that 75% of the volume was from China. Since then imports started to creep up. Cement imports reportedly rose by 84% year-on-year in 2018 and then by 11% in 2019. Data from construction industry data company Industry Insight suggests that Vietnam accounted for 70% or 0.47Mt of the 0.68Mt of cement imported into South Africa in the first nine months of 2020. The remaining 30% or 0.20Mt came from Pakistan. In this kind of environment it seems unlikely that ITAC will do anything other than extend tariffs.

Meanwhile in the northern hemisphere, in Ukraine this week a court in Kiev dismissed a challenge by the Belarusian Cement Company to remove cement import tariffs from Russia, Belarus and Moldova that were introduced in mid-2019 for five years. Notably, a law firm representing Dyckerhoff Cement Ukraine, HeidelbergCement Ukraine, Ivano-Frankivsk Ukraine and CRH subsidiary Podilsky Cement commented favourably upon the court’s decision to uphold tariffs. These producers form UKRCEMENT, the association of cement producers of Ukraine. However, the association doesn’t include Russia-based Eurocement, which operates Ukraine’s largest cement plant at Balakleya. Relations have been poor between Russia and Ukraine since a war between the countries that started in 2014. So any trade tariffs implemented upon Russia and/or Commonwealth of Independent States (CIS) members will inevitably carry the whiff of geopolitics. Yet, in Ukraine’s defence, it also started an anti-dumping investigation into cement imports from Turkey in September 2020. Nationalism may be relevant but let’s not discount hard-nosed economics just yet.

Turkey’s involvement in Ukraine leads to last week’s presentation at Global Cement Live by Sylvie Doutres, DSG Consultants on cement and clinker trade in and out of the Mediterranean region. Readers can watch the presentation here but the headline story here was the trend of reducing exports away from southern European countries such as Spain, Italy and Greece, to greater exports from North African countries and Turkey over the last decade. Turkey particularly has pushed its share of exports even more in 2020 despite (or perhaps because of) a tough domestic market. The general trend here away from southern Europe has been blamed on European Union-based (EU) producers becoming less competitive often against newer plants in nearby countries.

Battles between producers and government tariff policies are a perennial feature of any market in commodities such as cement. The ebb and flow of import and export markets cover many factors including production costs, distribution networks, tariff structures and more. Distinctive features of cement trading, for example, are the high cost of transporting heavy building materials over land and the world’s chronic cement production overcapacity. In the EU’s case one reason that often gets blamed is the emissions trading system (EU ETS) and the mounting cost it is imposing upon cement production. For example, today’s story that Holcim España wants to convert its integrated Jerez plant into a grinding unit has been blamed on falling exports and a reduction in ETS credits. It is noteworthy then that the EU ETS rate breached the Euro30/t level in December 2020. This may be good news for the sustainability lobby but the exodus of exports away from Southern Europe tells its own story. What form the EU ETS carbon border adjustment mechanism takes as part of the EU Green Deal will be watched closely by producers both inside and outside the EU.

Global Cement Live continues on 21 January 2021 with Kevin Rudd, Independent Cement Consultants, presenting 'Independent or third party factory acceptance testing of major cement plant equipment and critical spare parts and the challenges of Covid’

Italy: Federbeton, the Italian cement and concrete association, has called for a coordinated infrastructure investment plan to restart the national economy once the coronavirus crisis recedes. It has noted a halt to production not seen since the 1940s during the current crisis and a general reduction in cement consumption to 17Mt/yr from 47Mt/yr over the last decade, according to the Agenzia Nazionale Stampa Associata (ANSA). It is calling on a strategic plan for the sector to make any post-pandemic economic recovery as efficient as possible.

Italy: Caltagirone Group subsidiary Cementir Holding has announced the upcoming launch of its FutureCem grey cement product on 1 January 2021. The company says that it has 30% lower CO₂ emissions than normal ordinary Portland cement (OPC). It developed the product in collaboration with its Denmark-based subsidiary Aalborg Portland using 35% limestone and calcined clay to replace clinker. This resulted in a much more sustainable, high grade cement according to the company. It added that the low carbon benefits of FutureCem have been achieved without compromising strength and quality.

Chief sales, marketing and commercial development officer Michele Di Marino said that FutureCem is a ‘giant step’ on the way towards more sustainable cement production. “This is immensely important if we are to achieve our sustainability goals at Cementir Group,” said Di Marino. “But it is also an important contribution to the green transition of the concrete and construction industries in general. Thanks to the efforts of our research and development department in Aalborg, we are ready to begin distributing the FutureCem technology in Denmark and soon other subsidiaries in Europe will follow.” He added, “We have reached an important milestone in our innovation and sustainability efforts, but we are not done. Currently, we are incorporating the technology into more cement types in our product range. This includes white cement, and we have already introduced two white ultra-high performance concrete (UHPC) premix types with FutureCem technology.”

Italy: The Italian cement and concrete association Federbeton says that investments in sustainable technologies in domestic cement production totalled Euro110m between 1 January 2017 and 31 December 2019. This reduced carbon dioxide (CO₂) emissions by 311,000t in 2019 alone, up by 12% year-on-year from the reduction in 2018. An increased alternative fuel (AF) substitution rate of 6.7% in 2019 contributed to the reduction, up by 0.7% from 6.6%. Producers’ full-year AF consumption was 1.6Mt.

Italy: Germany-based HeidelbergCement is reportedly considering a relocation of its subsidiary Italcementi’s research centre from Bergamo, Lombardy to Heidelberg in Baden Württemberg, Germany. The Italia Oggi newspaper has reported that Italcementi said, "The reorganisation of innovation and product research activities will be concentrated on a global level to better enhance the important skills acquired in Bergamo, making them available to all the countries that are part of the group. The process of relocation to Heidelberg of the research activities will be defined in detail during 2021 and at the same time all the possible solutions for the workers involved will be implemented through internal or external relocation offers."

The proposed move has attracted local resistance. Chamber of Deputies member for Lombardy Maurizio Martina said, “All the institutions, from the national government to the regional council, must promote an initiative to discuss with the owners the choice of moving the HeidelbergCement research centre to the German headquarters. The agreements signed in 2016 were different: we are talking about one of the most important research centres in the world, which brings quality employment and added value to Bergamo and Lombardy, and it is essential to do everything to ensure that it remains in our territory."

Italy: Caltagirone Group company Cementir Holding sold 7.7Mt of grey cement, white cement and clinker in the first nine months of 2020, up by 11% year-on-year from 6.9Mt in the first nine months of 2019. Earnings before interest, taxation, depreciation and amortisation (EBITDA) declined by 2% over the period, to Euro178m from Euro182m, while sales also declined, by 1% to Euro897m from Euro906m.

One notable region where the trend was reversed was Egypt, where, in spite of a 2.5% fall in cement and clinker volumes, EBITDA rose by 40% to Euro6.81m from Euro4.86m and sales rose by 16% to Euro31.3m from Euro27.1m. EBITDA also rose in the Nordic and Baltic, Turkey, China and Asia-Pacific regions.

Chief executive officer (CEO) and chair Francesco Caltagirone said, “Results significantly improved in the third quarter, with cement up by 19% and EBITDA up by 12% compared to the third quarter of 2019.”

Italy: Buzzi Unicem’s net sales fell slightly to Euro2.41bn in the first nine months of 2020 from Euro2.42bn in the same period in 2019. Its cement sales volumes declined by 1.8% to 21.7Mt from 22.1Mt. The group said that sales volumes recovered during the third quarter of 2020 due to a rebound of demand in Italy, stability in Germany and a ‘trend reversal’ in Russia. Net sales also increased in the US during the third quarter.

Italy: The pilot plant for the Cleanker project was inaugurated at Buzzi Unicem’s Vernasca cement plant in early October 2020. The purpose of the calcium looping technology project is to demonstrate a technology for capturing carbon dioxide (CO₂) in cement plants. Tests will be run for around 10 months with a total actual operating time of one month at most.

Brazil: Ireland-based CRH has agreed to sell its Brazilian business to Companhia Nacional de Cimento (CNC), a joint venture between Italy-based Buzzi Unicem and Grupo Ricardo Brennand, for US$218m. The related assets include three integrated cement plants and two grinding plants. The sale is subject to approval by the Brazilian Competition Authority (CADE). CRH Brazil sold approximately 2.5Mt of cement in 2019.

In 2019 CRH sold its 50% stake in India-based My Home Industries for US$354m. Outside of Europe and North America it retains subsidiaries in the Philippines and China.

Italy: Buzzi Unicem says that it has implemented a number of measures to enable it to deal with any economic downturn resulting from the financial impacts of the coronavirus outbreak. The Il Sole newspaper has reported that the company’s strategies fall under two headings, namely increasing efficiencies and improving products and services. As such, the company is targeting a medium-term increase of Italian cement plant capacity utilisation of 70 - 75% from 55 - 60%, while also increasing its product range to offer custom concrete blends “to best suit the needs of the customer.”