Displaying items by tag: MPA
Lex Russell appointed as chair of the Mineral Products Association
06 September 2023UK: The Mineral Products Association (MPA) has appointed Lex Russell as its chair for a two-year period. He succeeds Simon Willis, the head of Hanson UK, who has been in post for three years.
Russell is the managing director of Cemex UK Materials. He has worked in the building materials industry for 40 years, initially starting in 1984 with Scotland-based quarrying and concrete product company Alexander Russell, holding a variety of operational and technical roles. In 1989 he joined RMC’s technical department before progressing through the organisation as Quarry Manager, Operations Manager, Business Manager and director.
In 2005 RMC was acquired by Cemex and two years later Russell moved to Australia to lead a team in the post-merger integration of Rinker, acquired by Cemex in 2007. He returned to the UK as Vice President before becoming managing director of the Cemex UK Materials business in 2018.
Mineral Products Association makes five new appointments
23 November 2022UK: The Mineral Products Association (MPA) has appointed Jon Flitney, Michael Conroy, Liam Forde, Steve Callow and Mike Haynes to new roles at the organisation. This follows the appointment of Jon Prichard as the MPA’s chief executive officer in October 2022, succeeding Nigel Jackson.
Jon Flitney has joined MPA Cement as Energy and Climate Change Manager. He will be working with the MPA Cement Climate Change and CO2 Reduction group providing support to sector decarbonisation and associated policies. Flitney joins from the British Ceramic Confederation (BCC) where he has worked across energy, environment, climate change and decarbonisation policy areas for over six years. He also previously worked on air quality and environmental protection for local authorities and the Environment Agency, covering a variety of manufacturing industries.
Michael Conroy joins as Manager - Environment, Safety & Regulatory Affairs for MPA Cement. He has over 20 years’ experience in the mineral products industry and ,since 2016, this has been focussed on environmental management, compliance, permitting and regulation across various sectors within the industry. His role at MPA involves working with members in the cement sector and liaising with the environmental regulators and relevant government departments on behalf of the members to ensure the sector is recognised in a positive and beneficial way. He is secretariat for the Cement Regulatory Interface Group (RIG), which meets regularly to discuss environmental regulatory matters that affect and impact the UK cement sector.
Liam Forde has joined BRMCA/MPA Ready-mixed Concrete as Construction Manager. His main responsibilities will be working with MPA members, the Concrete Centre and UK Concrete to promote safety, best practice, and ready-mixed concrete as the best solution for sustainable and resilient construction. Forde is a chartered civil engineer and joins from BAM Nuttall having had a background in both design and site environments.
Steve Callow has joined as Manager, Masonry and Concrete Products. He joins from Marshalls where he was Specification Manager. He also has sector experience gained from roles in FP McCann, CPM, Milbury Systems and Carillion.
Mike Haynes has joined MPA as British Lime Association Director. He joins MPA after 18 years in the lime industry working in the sales and customer services teams responsible for Construction and Civil Engineering markets and progressing to managing the customer services team. Prior to this, Haynes worked for contractors and consultants in those markets, as an engineer and project manager.
Update on hydrogen injection in cement plants
14 September 2022Argos Honduras revealed this week that it has been testing the injection of hydrogen into the kiln of its integrated Piedras Azules cement plant. It has completed a pilot with Portugal-based company UTIS. As part of the process it has been trialling, it has split water by electrolysis and then injected the hydrogen and oxygen directly into the kiln via the main burner. The pilot has reportedly increased clinker production and reduced petcoke consumption at the plant.
Argos is far from alone in using hydrogen in this way. At the end of August 2022 Cemex said that it was also starting to use hydrogen at its San Pedro de Macorís cement plant in the Dominican Republic. CRH UK-subsidiary Tarmac completed a trial in July 2022 using hydrogen as an alternative to natural gas at its Tunstead lime plant. HeidelbergCement UK-subsidiary Hanson also ran a successful trial using hydrogen as part of the fuel mix at its Ribblesdale cement plant in 2021. The government-funded trial used a combination of hydrogen (39%), meat and bone meal (12%) and glycerine (49%) to reach a 100% alternative fuels substitution rate. In 2021 Hanson reported that fuel switching to hydrogen could help it reduce its 2050 CO2 emissions by about 3%, or by -35kg CO2/t of cement product.
Cemex appears to be a leader in using hydrogen in this way. The Mexico-based company started injecting hydrogen in 2019 and retrofitted all of its European cement plants with the technology to do so in 2020. It then said it wanted to roll this out to the rest of its operations. The project in the Dominican Republic is an example of this. In February 2022 it announced an investment in HiiROC, a UK-based company that has developed a method using thermal plasma electrolysis to convert biomethane, flare gas, or natural gas into hydrogen. The stated aim of this investment was to increase Cemex's hydrogen injection capacity in its cement kilns and to increase its alternative fuel substitution rate. Back in 2020 Cemex said that it planned to use hydrogen injection to contribute 5% of its progress towards its 2030 CO2 emissions reduction target along with other measures such as increasing its thermal substitution rate and reducing its clinker factor.
As can be seen above there are a number of examples of hydrogen injection being used in cement plants in Europe and the Americas. However, there is very little actual data available publicly at this stage on how much hydrogen that the plants are actually using. For example, Cemex may have hydrogen injection equipment installed at all of its plants in Europe but it is unclear how many plants are actually using it. This is understandable though, given how commercially sensitive the fuel mix of a cement plant is and in Cemex’s case if it wishes to maintain a leader’s advantage in using a new technology.
It is interesting to see, in what has been released so far, the focus on doing deals with companies that supply electrolysis technology such as HiiROC and UTIS. A feasibility study ahead of the Hanson trial at Ribblesdale by the MPA, Cinar and the VDZ suggested that upgrading a kiln burner and adding all the necessary hydrogen storage and pipework could cost at least Euro400,000. However, this study also pointed out that the cost of hydrogen made a big difference to the cost of the CO2 saving from using it as an alternative fuel. Hence the focus on the technology partners. It will be interesting to see how many more hydrogen injection projects are announced in the coming months and years and, crucially, who is providing the technology to supply the hydrogen.
Electricity supplies to cement plants in Europe
07 September 2022Cembureau called for urgent action on electricity prices from European governments this week to protect cement plants. Its maths was crushingly simple. One tonne of cement takes around 110kWh of electricity to produce. Electricity prices started to top Euro700mWh in some European Union (EU) countries at the end of August 2022. The association says that this represents added costs of Euro70/t of cement and a tripling of the total cost of production. This kind of sudden extra cost to cement production could lead to the widespread closure of cement plants and lead to chaos in the construction supply chain.
Previously, Cembureau reported in 2020 that electricity accounts for about 12% of a cement plant’s energy mix. In a dry production process plant 43% of this is used for cement grinding, 25% goes into raw material preparation, another 25% on clinker production and the final portion is typically used for raw material extraction, fuel grinding and for packing and loading. However, the cost of the electricity can make a big difference to the overall energy bill for a cement plant. When a report by the European Commission’s (EC) Joint Research Centre (JRC) modelled a reference northern European cement plant with a production capacity of 1.0Mt/yr back in 2016, it concluded that the EU cement industry was spending around half of its energy costs on electricity compared to smaller ratios at plants in China, Egypt, Algeria and... Ukraine. That last country in the list is poignant given its unwitting participation in the current energy crisis. One other thing to note is that cement producers, as large scale users, may well be paying less than the wholesale prices Cembureau appears to be quoting.
The timing of Cembureau’s proclamation is pertinent because the EU and individual states have mostly been waiting until the autumn before revealing their energy support plans. However, the dilemma for Cembureau, and other industry lobbying groups, is how to protect their sectors whilst domestic consumers are threatened. The aftermath of the coronavirus lockdowns has shown what can happen when production of key commodities stops: supply chain disruption, shortages and price rises. One ironic shortage in the UK during the lockdown periods was that of CO2, as high gas prices forced the main producer to shut down, leading to unexpected knock-on problems along the supply chain in areas such as food production. The same situation is reportedly at risk of happening again now too.
Cembureau’s wider solution is to link domestic and industrial consumers of electricity. So, some of its suggestions to policymakers are to use all available means of power generation, implement emergency measures such as price caps immediately, change the rules of the electricity market more generally to prevent future price shocks and to promote large scale renewable power source development. These are all things that could help both individual and industrial users of electricity.
Compare and contrast, then, with the MPA’s (Mineral Products Association) approach to the same problem in the UK. Its strategy instead has been to ask the UK government for tax cuts and freezes and to hurry along the forthcoming policy on support for Energy Intensive Industries. That’s not to say that Cembureau’s suggestions don’t also include some sector specific requests. It has asked that the EU temporary state aid framework adopted in late March 2022 should allow all energy intensive industries to have access to state aid covering 70 - 80% of eligible costs. It has also encouraged the wider use of alternative fuels, although it doesn’t link the reason why beyond reducing imports of fossil fuels. Lastly, it bangs the drum for its recent preoccupation, the EU Carbon Border Adjustment Mechanism, this time adding electro-intensity as a main criterion for eligibility for compensation under EU emission trading scheme (ETS) indirect state aid guidelines.
Government support packages for the energy crisis are starting to be announced in European countries but the question for everyone is whether they and other actions will be enough. One problem for the cement industry will be simply staying on the radar of policy makers facing a crisis looming over their citizens. Yet if there is not enough energy to go around then rationing of some kind will be inevitable and heavy industrial users will be the first obvious targets to be told to cut back. Some months later building material supply shortages will hit. One national cement sector to watch in the coming months may be the Spanish one as it has long warned of the risks of high electricity prices.
UK: The Mineral Products Association (MPA) says it is disappointed that UK-based cement and lime producers have been excluded from the government’s compensation scheme for climate change costs. The association says that the government has, “missed an opportunity to support two essential industries during the current energy crisis, despite other industry sectors - which directly compete with cement and lime - receiving the compensation.”
Under the Department for Business, Energy & Industrial Strategy (BEIS) scheme, some energy intensive industries can apply for compensation from the indirect costs of the UK Emissions Trading Scheme (UK ETS) and Carbon Price Support (CPS) if they meet certain criteria. In the government’s 2021 consultation on the compensation mechanism, energy intensive industries needed to meet at least one of three tests to qualify. However, the MPA says that BEIS later changed this so that they had to pass all three tests and modified the targets.
Diana Casey, Director for Energy and Climate Change at the MPA, said “It is extremely disappointing that having met the criteria set out in the consultation, BEIS has decided to move the goalposts and exclude cement and lime from the scheme. UK manufacturers of all products face higher electricity and gas costs than European competitors, and this decision misses an opportunity to support the competitiveness of the UK cement and lime sectors, both essential foundation industries, especially during the current energy crisis and rapidly rising costs. Reaching net zero and delivering our economic potential requires huge investment from global businesses and it becomes harder to make the case for the UK as a location for such investment if policy costs make operating in the UK uncompetitive.”
From the Nordics to the Mediterranean, European countries lead the field in reduced-clinker cement production using supplementary cementitious materials (SCMs). While consumers, faced with ever-greater choice, continue to opt for sustainability, projects to improve existing SCMs and develop new ones have won government backing and have become a matter of serious investment for other heavy industries beside cement. European cement producers’ decisions are steering the course to a world beyond CEM I. Yet, even in Europe, great untapped potential remains.
Companies generated a good deal of marketing buzz around their latest reduced-CO2 cement ranges in 2021 and the first quarter of 2022: Buzzi Unicem’s CGreen in Germany and Italy, Holcim’s EcoPlanet in six markets from Romania to Spain, Cementir Holding’s Futurecem in Denmark and Benelux, and Cemex’s Vertua in Spain and several other countries. All boast reduced clinker factors through the use of alternative raw materials. This, however, is really a rebranding of a long-established norm in Europe.
Since 2010, cements other than CEM I have constituted over 75% of average annual cement deliveries across Cembureau member countries (all cement-producing EU member states, plus Norway, Serbia, Switzerland, Turkey, the UK and Ukraine). This statistic breaks down differently from country to country. CEM II is the norm in Austria, Finland, Portugal and Switzerland, with deliveries in the region of 90%. Portland limestone cement (PLC) makes up a majority of deliveries in all four. It has been central to Switzerland’s transition to 89% (3.72Mt) of CEM II deliveries out of a total 4.18Mt of cement despatched in 2021. There, the main types of cement were CEM II/B-M (T-LL) Portland composite cement, with 1.38Mt (33%), and two different classifications of PLC: CEM II/A-LL PLC, with 1.28Mt (31%), and CEM II/B-LL PLC, with 888,000t (21%).
A second approach is that of the Netherlands, where CEM III blast furnace slag cement with a clinker factor below 65% predominates, favoured for its sulphate resistance and the protection it offers against chloride-initiated corrosion of steel reinforcement in marine settings. By contrast, the UK has traditionally maintained a higher reliance on CEM I cement. This can be partly explained by the preference of builders there for adding fly ash or ground granulated blast furnace slag (GGBFS) at the mixing stage. Nonetheless, CEM II Portland fly ash cement held a 14% (1.43Mt) market share in the UK’s 10.2Mt of cement consumption in 2021.
The UK Mineral Products Association (MPA) has identified limestone as an underutilised resource in the country’s cement production. Together with HeidelbergCement subsidiary Hanson Cement, it has applied for a change to National Application standards to allow the production of Portland composite cement from fly ash and limestone or GGBFS and limestone. The association has forecast that Portland composite cement could easily rise to 30 – 40% of UK cement consumption, and that this has the potential to eliminate 8% of the sector’s 7.8Mt/yr-worth of CO2 emissions.
Metallurgical waste streams have long flowed into European cement production, primarily as GGBFS, but also as bauxite residue. In 2021, alumina production in the EU alone generated 7Mt of bauxite residue, of which the bloc recycled just 100,000t (1.4%) that year. Two projects – the Holcim Innovation Center-led ReActiv project and Titan Cement and others’ REDMUD project – aim to produce new alternative cementitious materials from bauxite residue.
By collaborating with other industries, cement producers’ investments can most effectively reduce the overall cost of using these materials in cement production. In Germany, HeidelbergCement and ThyssenKrupp’s Save CO2 project aims to develop new improved latent hydraulic binders or alternative pozzolan from GGBFS by producing slag from directly reduced iron (DRI). The Save CO2 team believes that GGBFS substitution for clinker has the capacity to eliminite 200Mt/yr of CO2 emissions from global cement production.
Meanwhile in the world of mining, ThyssenKrupp and others’ NEMO project is investigating the recovery of a useable mineral fraction for cement production from the extractive waste of the Luikonlahti and Sotkamo mines in Finland and the Tara mine in Ireland, through bioleaching and cleaned mineral residue upcycling. This may give cement producers full access to Europe’s 28Bnt stockpiles of sulphidic mining waste, of which mines generate an additional 600Mt each year.
Denmark-based CemGreen, which produces the calcined clay supplementary cementitious material CemShale, is developing a shale granule heat-treating technology called CemTower. This consists of three pieces of equipment vertically integrated into cement plants’ preheaters, kilns and coolers, and brings the processing of waste materials – here oil shale – to the cement plant.
Lastly, cement producers are exploring the possible uses of waste made of cement itself. In Wallonia, HeidelbergCement subsidiary CBR’s CosmoCem project is investigating the production of alternative cement additives from large available flows of local demolition, soil remediation and industrial waste. Similarly, the Greece-based C2inCO2 project seeks to mineralise fines from concrete recycling for HeidelbergCement to use in the production of novel cements in its Greek operations.
In Switzerland, ZND Portland composite cement (produced using fine mixed granulate from building demolitions) is the third largest cement type, with 178,000t (4.3%) of total deliveries – narrowly behind CEM I with 239,000t (5.7%).Holcim Schweiz developed its Susteno 4 ZND Portland composite cement with Switzerland’s lack of any ash or slag supply in mind, demonstrating the potential flexibility of a circular economic approach to cement production.
On 21 March 2022, the University of Trier reported that it is in the process of mapping mineral resources, waste deposits and usable residues ‘on a cross-border scale,’ in an effort to produce new materials for use in cement production. Industry participants include France-based Vicat, CBR, Buzzi Unicem subsidiary Cimalux and CRH subsidiary Eqiom. Vicat is preparing a kiln at its 1Mt/yr Xeuilley cement plant in Meurthe-et-Moselle to use in testing new alternative raw materials developed under the project.
For Cembureau and its members, work continues, with the goal of Net Zero by 2050 constantly in sight. This goal includes a reduction in members’ clinker-to-cement ratios to well below 65%. In this, the association and its members are working towards a world not just beyond CEM I, but beyond CEM II, too. What exactly this will mean remains to be seen.
Sources
CemSuisse, ‘Lieferstatistik,’ 11 January 2022, https://www.cemsuisse.ch/app/uploads/2022/01/Lieferstatistik-4.-Quartal-2021.pdf
WSA, ‘December 2021 crude steel production and 2021 global crude steel production totals,’ 25 January 2022, https://worldsteel.org/media-centre/press-releases/2022/december-2021-crude-steel-production-and-2021-global-totals/
MPA, ‘Low carbon multi-component cements for UK concrete applications,’ July 2018, https://prod-drupal-files.storage.googleapis.com/documents/resource/public/Low%20carbon%20multi-component%20cements%20for%20UK%20concrete%20applications%20PDF.pdf
European Commission, ‘European Training Network for Zero-waste Valorisation of Bauxite Residue (Red Mud),’ 16 July 2020, https://cordis.europa.eu/project/id/636876
European Commission, ‘Industrial Residue Activation for sustainable cement production,’ 16 February 2022, https://cordis.europa.eu/project/id/958208
Recycling Portal, Zement der Zukunft – Forschungsprojekt „SAVE CO2“ gestartet, 28 May 2021, https://recyclingportal.eu/Archive/65677
h2020-NEMO, ‘Project,’ https://h2020-nemo.eu/project-2/
European Commission, ‘Green cement of the future: CemShale + CemTower,’ 14 April 2021, https://cordis.europa.eu/project/id/101009382
CosmoCem, ‘Communiqué de Presse,’ https://cosmocem.org/
CO2 Win, ‘C²inCO2: Calcium Carbonation for industrial use of CO2,’ https://co2-utilization.net/en/projects/co2-mineralization/c2inco2/
Les Echos, ‘Rendre le ciment moins gourmand en CO2,’ 21 March 2022, https://www.lesechos.fr/pme-regions/innovateurs/des-substituts-au-clinker-rendent-le-ciment-moins-gourmand-en-co2-1395002
MPA welcomes UK hydrogen strategy but warns of costs
19 August 2021UK: The Mineral Products Association (MPA) has welcomed the government's UK Hydrogen Strategy but warned that the costs of production, transmission and distribution need to be shared by the whole UK economy. The state plan was published in mid-August 2021 and it sets out how progress will be made over the next decade to deliver 5GW of low carbon hydrogen production capacity by 2030, as part of the UK's drive to achieving its net zero targets. A consultation has also been launched to identify how the current cost gap between low carbon hydrogen and fossil fuels can be overcome.
Richard Leese, Director of Industrial Policy, Energy and Climate Change at the MPA said, "it's now critical that energy intensive industries, including the UK cement sector, which are essential for our economy and way of life, are not unduly penalised by additional policy costs for the production, transmission and distribution of hydrogen on top of already high electricity costs and carbon-related environmental taxes. Hydrogen development costs need to be shared by the wider economy to encourage acceleration of the technology and ensure industrial gas users and hydrogen generated power users are not placed at any further international competitive disadvantage.” Leese added that switching fuels away from fossil fuels, including the potential to adopt hydrogen technology, was already one of seven key levers in MPA UK Concrete's Roadmap to Beyond Net Zero.
The MPA is currently undertaking demonstrations of hydrogen as well as plasma technology, which are being partly funded by the Department for Business, Energy and Industrial Strategy (BEIS). The projects follow a BEIS-funded feasibility study in 2019 which found that a combination of 70% biomass, 20% hydrogen and 10% plasma energy could be used to eliminate fossil fuel CO₂ emissions from cement manufacturing.
The association has also welcomed the government's announcement of a Euro47m Red Diesel Replacement competition to help develop diesel alternatives as part of the Net Zero Innovation Portfolio. However, it renewed its call for a delay in the removal of the red diesel rebate, scheduled for April 2022, and estimated to cost the mineral products sector alone nearly Euro120m/yr.
UK: The Mineral Products Association (MPA) recorded a 1.2% quarter-on-quarter decline in the UK’s total concrete sales volumes in the second quarter of 2021. Volumes rose compared to 2020 levels, but remained lower than those in the second quarter of 2019. Mortar sales volumes recorded a 21% quarter-on-quarter rise, the sharpest since 2012. The association says that this signals the start of new housebuilding activity, as well as a ‘renewed pipeline of works’ in other sectors. It said that it expects demand for core construction materials to remain high for the remainder of 2021, into 2022, with the current construction outlook expected to drive double-digit growth in mineral products sales for the full year of 2021. The MPA anticipates the strongest contribution to come from infrastructure.
Director of Economic Affairs Aurelie Delannoy said “The surge in pent-up demand for materials in recent months, plus declining availability of haulage drivers as well as increasing costs, are causing concerns over future supply capacity, although every effort is being made to mitigate these. Despite challenging circumstances, companies supplying mineral products have on the whole continued to meet the demands, delivering record volumes along the way.”
The UK construction market is in a funny situation right now. As the economy has started to grow in 2021, shortages of building materials have been reported following the relaxation of coronavirus-related restrictions. In April 2021, for example, the Construction Leadership Council (CLC) added cement, aggregates and certain plastics to its existing lists of products in short supply. These commodities joined a slew of other materials, including timber, steel, roof tiles, bricks and imported products such as screws, fixings, plumbing items, sanitaryware, shower enclosures, electrical products and appliances. The CLC advised all users to, “plan for increased demand and longer delays, keep open lines of communication with their suppliers and order early for future projects.”
Skip forward a month to May 2021 and these shortages are on more people’s minds with the announcement by the Office for National Statistics that UK monthly construction output grew by 5.8% month-on-month to around Euro16.5bn in March 2021 due to both new work and to repair and maintenance projects. Quarter-on-quarter output also rose by 2.6%, adding to the impression of a building sector emerging from the fog of lockdown. In the face of this good news Nigel Jackson, the chief executive of the UK mineral Products Association (MPA), was asked about reported shortages of cement. He told local press this week that “it would not be surprising if there were short-term issues of supply as the economy gathers momentum.” He added that the biggest issues had been observed in levels of bagged cement typically used in domestic projects.
The MPA followed this up with the results of a survey of building materials manufacturers that reported a slow but steady start to 2021 with mounting construction demand month-on-month. Sales volumes of aggregates and concrete were both up quarter-on-quarter but volumes of asphalt and mortar fell. Unfortunately that survey didn’t cover cement volumes but it did have more to say about concrete. In its view ready-mixed concrete sales had been subdued since 2017 due to the UK’s departure from the European Union (Brexit) and a general slowdown in residential building. The market recovery seen so far in 2021 was likely to be merely a return to growth from a subdued level of activity that pre-dates Covid-19.
At the time of writing the UK government faces a decision about whether to continue opening up the economy or exercise caution in the face of the as-yet unknown consequences of the Indian variant of coronavirus. This may delay talk of building materials shortages but it can’t avoid it forever. In the UK, cement shortages appear to be due to the self-build segment and will hopefully soon be resolved.
A shortage of cement in the UK may not mean much to people outside the country, with the exception of exporters. Yet the wider picture here is that the coronavirus pandemic has affected the production of building materials, changed end-user behaviour and distorted markets around the world. Other examples include the row over the price of cement in Nigeria, the boom in cement sales in Brazil in the second half of 2020 or reported shortages in Jamaica this week. A significant number of people, when forced to spend more time at home, appeared to save money and then decided to either move to a different house or make their current one better. Yet at the same time differing government restrictions and market fluctuations have seen building material output levels vary widely. Other reasons are at play both local and international. Brexit in the UK is one example of the former, as importers and exporters have been forced to grapple with new rules and costs. The temporary blockage of the Suez Canal in March 2021 is one example of the latter. No wonder supply chains are struggling. That last point goes wider than building materials though, for example, as anyone trying to buy semiconductors has discovered. One fear behind all of this though is whether these are temporary shortages or whether inflation is on the way for the global economy generally. In this is the case, then it signals the end of the low consumer inflation rate era since the financial crash in 2008 and may herald changes in behaviour from both producers and consumers.
UK: The Mineral Products Association (MPA) has described first-quarter building materials demand as ‘resilient’ in 2021 despite renewed coronavirus lockdown restrictions, on-going supply chain disruptions and wet winter weather. Following a recent survey the association says that continued housing activity – with increased home improvements – and an acceleration in infrastructure work, driven by a new roads programme and the start of the HS2 high-speed railway, drove minor growth during the quarter. Ready-mix concrete demand rose by 2% year-on-year, while mortar demand fell by 7% during the period. The MPA said that both products are mostly used in the early stages of construction, thus serving as a barometer for construction activity ahead in the short term.
The MPA reports that since September 2020, construction growth has remained close to zero, whilst new contract awards have been ’weak’ since May 2020. The downward trend of housing-led mortar demand in the first quarter of 2021 continues a pre-pandemic decline since mid-2018. Thus, housing activity growth is considered unlikely to continue beyond the completion of existing projects ahead of the end of a land tax holiday and a deadline in a first time buyers loan scheme. The MPA described the slow growth of ready-mixed concrete demand as ‘concerning.’ Low housing activity and few new commercial projects compounded the difficult recovery: non-infrastructure projects normally generate 60% of demand. Ready-mix concrete producers rely on London and the South East region for over 30% of sales. First-quarter volumes were 9% below the previous five-year average, despite three consecutive quarters of growth since the first coronavirus lockdown in the first half of 2020.
Director of Economics Affairs Aurelie Delannoy said, “Mineral products manufacturers are busy supplying post- lockdown pent-up demand, particularly for domestic activity such as landscaping, repair and maintenance and home improvements, as well as infrastructure projects.” She added “The outlook for this year and next is also positive, but the stakes are high. Any optimism assumes activity is not disrupted by renewed outbreaks of Covid-19 and, most importantly, relies on the government delivering on its planned infrastructure commitments. MPA members tell us they are yet to see a more clear-cut pick-up in new house building, whilst any recovery in commercial development is expected to remain muted given the current reticence for major new investments.”