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News Portland Cement Association

Displaying items by tag: Portland Cement Association

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US tariffs on Mexico - consequences for the cement industry

05 June 2019

Talk of US tariffs on imports from Mexico was not troubling the National Chamber of Cement (CANACEM) this week. Director general Yanina Navarro pointed out to local media that Mexico only exports 1.42Mt or 3.4% of its total production of 44Mt/yr to its northern neighbour. This is a little higher than the 1.04Mt reported by the United States Geological Survey (USGS) in 2018, although that figure is believed to have underestimated imports to El Paso district in Texas. Mexico was the fifth largest exporter of hydraulic cement and clinker to the US behind Canada, Turkey, China and Greece.

Commentators pointed out that Grupo Cementos de Chihuahua (GCC) might be affected more that other Mexican producers as two of its plants are close to the border at Samalayuca and Juárez in Chihuahua. However, GCC operates five plants in the US. Cemex also has a plant near the US border at Ensenada in Baja California. Yet it’s the fourth largest producer in the US by integrated production capacity. If either company had its export markets seriously disrupted by any border duties they could likely focus on production in the US to compensate.

Once again this is similar to the situation with the proposed border wall where, although President Donald Trump wanted Mexico to pay, it would have been Mexican companies benefiting the most from any construction boom. This was also the case with the US-Mexico-Canada Agreement (USMCA), the successor to the North American Free Trade Agreement (NAFTA). The international structure of many of the larger Mexican cement producers insulates them from these kinds of political and trade disputes.

Mexican producers shouldn’t be too complacent though. Tariffs are likely to play havoc with integrated supply chains as in the car industry. Building materials will probably be affected less so but that 1.42Mt export figure is more than the production capacity of many individual Mexican cement plants. Taking away this export market will drag on the industry’s utilisation rate and alternate destinations may be hard to find. Note the trouble Mexico has had distributing its products in Peru. The Supreme Court there upheld a fine this week on UNACEM for trying to block the distribution of Cemex’s brand of cement in 2014. Also, although Trump’s tariffs on Chinese products may not have much of an impact on building materials, USGS data shows that Chinese imports of cement to the US fell by 27% year-on-year to 0.76Mt in the six months to the end of February 2019. Similar reductions could await Mexico’s exporters.

The general consensus from the free market press is that tariffs will ultimately hurt both economies. In agreement the Portland Cement Association (PCA) published a market report in April 2018 on the effects of tariffs on US cement consumption in the wake of tariffs on steel and aluminium imports from the European Union (EU), Canada and Mexico. The summary was that all forms of tariff – from minor to a global trade war – would likely result in reduced US cement consumption to varying degrees due to slower economic growth. A full-scale set of tariffs on Mexican imports is likely to induce similar consequences.

Published in Analysis
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Portland Cement Association lobbies against US government grant for wood projects

30 May 2019

US: The Portland Cement Association (PCA) and other trade associations from the concrete and steel sector have urged that Larry Kudlow, the director of the National Economic Council, review the use of government funds on projects that use wood as a building material. The American Concrete Pumping Association, American Institute of Steel Construction, American Iron and Steel Institute, California Construction and Industrial Materials Association, Concrete Reinforcing Steel Institute, National Concrete Masonry Association, National Ready Mixed Concrete Association, Oregon Concrete & Aggregate Producers Association, Steel Framing Industry Association, Steel Manufacturers Association and the PCA expressed disappointment that the Department of Agriculture had awarded over US$8.9m for 29 projects designed to expand markets for wood products, particularly mass timber, for building construction.

The industry associations acknowledged the increase in cross laminated timber (CLT) projects in the US but they said they were concerned about the use of CLT on a large scale. They said that the grants unfairly promoted one building material at the expense of another.

Published in Global Cement News
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Portland Cement Association announces winners of 2019 Energy and Environment Awards

10 April 2019

US: The Portland Cement Association (PCA) has announced the winners of the 2019 Energy and Environment (E&E) Awards. The awards recognised environmental and community relations projects that were completed in 2018 and were presented at the 3rd Annual Cement and Concrete Fly-In.

The CalPortland Mojave cement plant in California won the Energy Efficiency award for the installation of a new classifier system for its vertical roller mill that increased energy efficiency by reducing fan power requirements. The plant also installed a control system for the finish mill that will maximise performance and help reduce wear on equipment. The classifier installation reduced the finish mill energy intensity by 1.5 to 2.0kWh/t, and the control system reduced energy intensity by 13%. In 2018 22% of the electricity consumed by the plant came from on-site renewable wind energy generation. CalPortland has implemented significant energy efficiency measures and its energy management program has been recognised by the Environmental Protection Agency Energy Star program as the Energy Star Partner of the Year for 15 years in a row.

Roanoke Cement Company and Titan America’s Troutville plant in Virginia won the Environmental Performance award for being the first cement manufacturing plant in the US to receive ISO 50001 certification for energy management of all aspects of energy procurement, design and use. The plant reduced its total electrical consumption by 10% and fossil fuels use by more than 12%. The plant has also implemented an alternative fuels program as part of its certification for the True Zero Waste Program, administered by Green Business Certification and has received silver status achieving a 96% rate of waste divergence from landfills.

Lehigh Hanson’s Permanente cement plant at Cupertino in California won the Innovation award for the installation of a water treatment system reducing concentrations of metals, including selenium, to meet permit limits. Lehigh Hanson developed a treatment system that combined ultrafiltration and reverse osmosis (UF/RO) technology in conjunction with biological treatment technology to remove metals, including selenium and dissolved solids. This ensured applicable effluent limits were met while optimising treatment capacity and efficiency. This treatment system is the first of its kind in the cement industry ensuring that effluent limits are met while, at the same time, limiting the quantity of waste needed to be managed.

Buzzi Unicem USA’s Greencastle cement plant in Indiana won the Land Stewardship award for opening a 4km smooth packed stone trail in conjunction with the not-for-profit People Pathways organisation as Phase 2 of the Putnam Nature Trail. Buzzi Unicem USA staff and People Pathways used heavy equipment for rough clearing and grading of the overgrown former railroad bed and improved and expanded the physical trail. These areas were then landscaped with trees, native prairie vegetation plugs, interpretive signage, benches, birdhouses and other features. Additional nature trail enhancements include placement of wildlife monitoring cameras along the trail, installation of nesting boxes and interpretive signage, and maintenance of the recently completed restoration of native flora installed in 2017 and 2018.

Cemex’s Lyons cement plant in Colorado won the Outreach award for volunteering work by its staff at the Rocky Mountain National Park in Boulder, Colorado, performing campground improvement activities at Glacier Basin Campground by moving rocks and fallen timber and clearing existing fire pits of ash deposits. The plant then introduced a new community outreach initiative by hosting a Manufacturing Day event, providing local students tours of the quarry and plant to increase youth interest in pursuing a vocation in skilled trades. Additionally, the plant teamed up with the Celestial Seasonings B Strong Ride for cancer care and research for an event aimed at increasing safety awareness while fundraising for two local organizations and their efforts to fight cancer.

Published in Global Cement News
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Portland Cement Association forecasts cement consumption to grow by 2.3% in 2019

20 March 2019

US: The Portland Cement Association (PCA) forecasts that cement consumption will grow by 2.3% year-on-year in 2019. It is a slight drop from the rate of 2.6% it previously forecast in November 2018.

“While there are several phenomena that confront the economy in the next two years, the PCA believes the economy is strong,” said Ed Sullivan, PCA Senior Vice President and Chief Economist. He added that rising interest rates are expected to drag on economic growth, leading to a slowdown in private construction. Cement consumption is expected to slow as a result.

The PCA also said in its Spring Forecast that rising state deficits had forced many states to adjust budgets, reduce costs, and re-prioritise spending. Infrastructure spending had been falling in priority as a consequence. In the medium term the PCA expects cement consumption growth to soften until 2021. It then thinks that President Donald Trump’s supplemental infrastructure initiative will arrive in 2022 leading back to increased cement consumption.

Published in Global Cement News
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Argos USA and GCC plants awarded Energy Star certification for first time in 2018

15 March 2019

US: Argos USA’s Harleyville cement plant in South Carolina and Grupo Cementos de Chihuahua’s (GCC) Pueblo plant in Colorado have been awarded Energy Star certification by the Environmental Protection Agency (EPA) for the first time. Altogether 100 manufacturing plants across different industries earned the certification in 2018.

24 cement plants received the certification in 13 states. These cement companies included Alamo Cement, Argos USA, Buzzi Unicem, CalPortland, Cemex, Continental Cement, GCC, Holcim US, Lehigh Cement, Salt River Materials and Titan America.

“America’s cement manufacturers’ commitment to sustainable manufacturing have led to improved equipment reliability, energy efficiency, and the increased the use of alternative fuels,” said Portland Cement Association president and chief executive officer (CEO) Mike Ireland.

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Andrew Wheeler confirmed as head of US Environmental Protection Agency

06 March 2019

US: The US Senate has confirmed Andrew Wheeler as the administrator of the Environmental Protection Agency (EPA). He had been working as acting administrator since the resignation of Scott Pruitt in July 2018. The Portland Cement Association ‘applauded’ the appointment of Wheeler, saying that he would ‘ensure’ regulatory certainty for the cement and concrete industry.

Published in People
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Portland Cement Association backs president’s infrastructure call

06 February 2019

US: The Portland Cement Association (PCA) has praised President Donald Trump’s call to rebuild the country’s infrastructure in his State of the Union address. Trump said that he wanted both political parties to work together to pass an infrastructure bill.

“The Portland Cement Association applauds President Trump for emphasising the political imperative of addressing America’s long-neglected infrastructure needs in his State of the Union address. America’s cement manufacturers are ready and willing to work with Congress and the Trump Administration to find a legislative solution that shores up our transportation and waterways in a fiscally responsible manner,” said PCA president and chief executive officer (CEO) Michael Ireland.

Published in Global Cement News
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Portland Cement Association forecast moderate growth for cement consumption in 2019

24 January 2019

US: Ed Sullivan, the Portland Cement Association’s (PCA) Senior Vice President and Chief Economist, forecasts that cement consumption will grow ‘moderately’ in 2019 alongside similar performance in the general US economy. However, he flagged gradual increases in interest rates, the aging recovery and accompanied trade issues as possible factors slowing down the cement market. Sullivan made his comments at the World of Concrete event in Las Vegas, where he revealed details from his forthcoming spring forecast.

“The US economy’s long run of growth should continue in 2019,” said Sullivan. “Since 2011 we have averaged 2 million jobs being created each year and the unemployment rate is below 4%. Despite the headlines, the impact in the near term of the rising interest rates and inflation are relatively benign. Simply put, fundamentals like these take a long time to unwind.”

Published in Global Cement News
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Portland Cement Association forecasts ebbing growth in 2019 and 2020

16 November 2018

US: The Portland Cement Association (PCA) forecasts that cement consumption growth will drop to 2.6% in 2019 and 1.6% in 2020. This compares to 2.9% in 2018. The PCA’s Market Intelligence Group has blamed the softening on rising interest rates, local financial problems at the state level and a general end to the recovery period following the financial crash in 2008.

“We are expecting relatively modest but sustained interest rate increases after 10 years of low and stable rates,” said PCA Senior Vice President and Chief Economist Ed Sullivan. “The Federal Reserve’s actions will gradually slow the construction sector’s growth due to, among other things, the higher mortgage rates for residential buildings and higher borrowing cost for non-residential buildings.” He added that tax cuts passed at the end of 2017 had boosted the overall economy but that rising debt levels was likely to frame the discussion of future federal public infrastructure spending.

Published in Global Cement News
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European cement producers not joking about implications of climate change legislation

17 October 2018

Well, it turns out that the European cement industry wasn’t kidding when it raised the risks of the climate mitigation on the sector. This week three (!) integrated plants have been earmarked for closure.

Cementa in Sweden said that it was considering closing its Degerhamn plant due to increased environmental regulations. Today, local press in Spain is reporting that Cemex España is planning to shut down two of its plants. These are plants in different parts of Europe with different local market dynamics but both are within the European Union (EU). That’s three plants closing out of 219 in the EU, or a loss of around 1% of production capacity.

Last week’s column on the United Nations’ (UN) Intergovernmental Panel on Climate Change (IPCC) report on Global Warming raised the way the cement sector is tackling climate change and the existing and impending legislation. President of the German Cement Works Association (VDZ) Christian Knell’s opening words at the VDZ Congress in September 2018 seem prescient. He said, “To be able to realise our efforts in terms of climate protection and at the same time not to lose competitiveness, we need research policy-related support for our investment in breakthrough technologies and the corresponding demonstration projects.” The add-on was that the industry needed to focus on how the development of carbon abatement technologies can meet the 2050 climate goals and, specifically, that suitable boundary conditions would have to be created. The press releases accompanying his speech emphasised that, “on-going trends in European emissions trading and the ‘rapidly increasing’ price of CO2 were already today leading to considerable costs for cement manufacturers.”

These words are similar to the comments Albert Scheuer, a board member of HeidelbergCement, made at the Innovation in Industrial Carbon Capture Conference early in 2018 about dividing the mounting environmental costs of cement and concrete between producers and society in general. Considering how much cementitious building materials most people use throughout their lives compared to the relative low price of cement, this argument carries some weight. In addition, the sustainability credentials of concrete buildings through longer lifespan and durability through extreme weather events is another argument that industry advocates such as the Portland Cement Association (PCA) in the US have been hawking in recent years.

Cementa, a subsidiary of HeidelbergCement, blamed anticipated tightening of environmental regulations for its decision. Although it said that the plant had made improvements over the years, the expected difficulty (read: cost) to make further improvements was becoming too hard. Shifting production to the company’s other two plants in the region, Slite on Gotland and Brevik in Norway, will reduce CO2 emissions by 260,000t/yr.

In Spain, the news from Cemex follows a half-year report from Oficemen, the local cement association, that predicted growth for the year but not as fast as previously expected. The problem was that continued declines in the export market, the 13th decline month-by-month in a row, offset the domestic growth. Oficement president Jesús Ortiz also took time to blame rising electricity costs, expected to rise by 20% year-on-year by the end of 2018.

Market issues in Spain aren’t in doubt, but the real question for both Sweden and Spain is whether EU CO2 legislation right now is causing cement producers to shut plants. The CO2 emissions allowance price hit a high of Euro22/t in September 2018, the highest price in a decade. Allowances have stayed below Euro10/t since 2011 and the price has more than doubled in 2018. Throw in the mood music of the IPCC and the trend seems irresistible. How many more plants in Europe are at risk to shut next? No doubt the European cement producers have charts marking the viability of their plants against the CO2 price. This would be a very interesting graph to get our hands on.

The 2nd FutureCem Conference on CO2 reduction strategies for the cement industry will take place in May 2019 in London, UK

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