Displaying items by tag: Prices
Fujairah Cement faces losses
27 March 2024UAE: Fujairah Cement has reported accumulated losses reaching over a third of its capital, primarily due to inflation and decreased revenue, according to Zawya. The total accumulated losses for the 2023 financial year stood at US$35.5m, equating to 36.68% of the company's capital, as disclosed on the Abu Dhabi Securities Exchange.
The company attributes the increase in losses to various factors, including the rising cost of coal and energy, lower clinker selling prices, a decline in revenue, and higher logistics and finance costs. The company is currently in advanced talks to appoint a renowned financial advisor for assistance in restructuring and exploring other potential options to mitigate these losses.
A separate disclosure highlighted that the major challenge faced during the year was the escalated production costs, primarily driven by increased coal and fuel prices.
Cemex reports sales growth in 2023
09 February 2024Mexico: Cemex reported sales of US$17.4bn in 2023, up by 8% year-on-year from 2022 levels. Meanwhile, the group’s operating earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 20% to US$3.35bn. The producer said that strong product pricing in all markets and slowing costs inflation compounded the positive effects of its growth investment strategy. On a consolidated basis, Cemex’s cement sales volumes fell by 6% to 51.7Mt from 55.1Mt. They rose by 3% in Mexico but fell by 10% in Europe, Middle East, Africa and Asia, by 3% in South and Central America and the Caribbean and by 13% in the US.
Chief executive officer Fernando González said "I am pleased to announce that 2023 is a great year for our company where we delivered not only great results and recovered from the extraordinary inflationary pressures of the last few years, but also continued executing against our ambitious decarbonisation commitments, reducing our CO2 emissions by 4% year-on-year and by 13% since 2020. Despite the significant macro challenges of the last four years, we have proven not only the resilience of our business model but also our ability to pivot and adjust rapidly to changing global conditions. This foundation gives us additional flexibility in capital allocation, where we continue to accelerate investments in our bolt-on growth strategy, initiate a sustainable return programme for shareholders and bolster our capital structure."
India: Sanghi Industries has received shareholder approval to supply its cement and clinker to ACC and Ambuja Cements. Additionally, Sanghi Industries will begin to purchase of coal from fellow Adani Group subsidiary Adani Enterprises, according to the Economic Times newspaper. Under the new arrangements, ACC and Ambuja Cements will sell Sanghi Industries’ cement and clinker under their own brands, at a price 10% above production cost. This is reportedly below industry pricing standards for comparable deals of 25 - 30% higher pricing over costs.
Adani Group subsidiary Ambuja Cements acquired a 57% stake in Sanghi Industries on 5 December 2023.
China National Building Material’s profit dropped in 2023
30 January 2024China: China National Building Material (CNBM) expects to record a 65% year-on-year drop in its profit in 2023. This would correspond to a figure of US$393m, against a reported profit after tax of US$1.12bn in 2022. Reuters has reported that CNBM partly attributed the anticipated drop to low cement prices and changes in the fair value of its assets.
Transcargo International to build cement terminal at Arish port
01 December 2023Egypt: Abu Dhabi Ports Group subsidiary Transcargo International (TCI) is building a bulk cement terminal at Arish port in North Sinai Governorate. The company says that the facility will be equipped with six 10,000t cement silos. Four silos will store up to 40,000t of grey cement, while two will store up to 20,000t/yr of white cement. Cementir Holding subsidiary Sinai White Portland Cement has signed a cooperation agreement with TCI to use the Arish cement terminal. TCI says that the terminal will serve multiple markets worldwide and help Sinai White Portland Cement to raise its total export volumes, thereby also raising its competitiveness.
TCI’s CEO Mohamed El Ahwal said "This project aligns with our commitment to support Egyptian exports by providing specialised logistics solutions across several industries. Building and operating Egypt’s first bulk cement terminal, we anticipate cost savings for cement producers in Egypt, making prices more competitive globally and increasing global market penetration."
Breedon Group’s 10-month 2023 trading update shows sales growth
23 November 2023UK: Breedon Group grew its sales by 8% year-on-year during the first nine months of 2023. Volumes ‘moderated’ over the period, yet ‘robust’ pricing and operational excellence successfully offset the effects of this on group sales. It generated ‘good’ free cash flow and is on track to deliver a further reduction in covenant leverage at the end of 2023, enabling it to continue its investments in growth. In September 2023, Breedon Group entered the FTSE 250 Index of the London Stock Exchange.
Chief executive officer Rob Wood said “Notwithstanding the market backdrop, the Breedon team continues to deliver and we are delighted to report a trading performance ahead of expectations. Against the uncertain political and economic backdrop, our teams have adapted well to deliver a compelling performance.” He continued “But we never settle – we will continue to seek ways to operate as efficiently and sustainably as possible, invest in our people and grow our business so we are positioned to succeed when the construction materials market returns to growth.”
India: The Competition Commission of India (CCI) will carry out a pan-India market study into the cement industry. The Hitavada newspaper has reported that the study will cover supply structure, pricing dynamics and other aspects of the market. The CCI says that it is conducting the study in order to investigate potential collusion, ensure fair competition and protect consumers’ rights, as well as to obtain insights into the state of the cement market across different regions of India.
The CCI said “Cement is a critical input in crucial sectors of the economy, such as housing and infrastructure. These sectors have well-known forward and backward linkages with a range of other industries, thereby having the potential to influence the overall growth trajectory of the economy.”
The India Cements records earnings of US$1.68bn in second quarter of 2024 financial year
02 November 2023India: The India Cements’ earnings before interest, taxation, depreciation and amortisation (EBITDA) reached US$1.68m during the second quarter of the 2024 financial year. The producer recorded a negative EBITDA of US$10.5m during the second quarter of the previous financial year. It succeeded in reducing its net loss by 41% to US$9.73m from US$16.6m. The India Cements said that oversupply and competition placed its cement prices under pressure.
Dangote calls price slash rumours ‘fake news’
29 September 2023Nigeria: Dangote Group has described online reports that it would halve the price of its 50kg bags of cement as ‘fake news.’ Anthony Chiejine, Spokesperson for Dangote Group, was responding to apparently unfounded reports that prices would tumble on 1 October 2023.
Earlier, Bahir Ahmad, a media aide to former Nigerian President Muhammadu Buhari, saying on X (formerly Twitter) “The Dangote Group has denied the trending reports that it has reduced the price of cement.”
The online rumour is thought to have gained traction after Dangote’s rival BUA Group chair Abdul Samad Rabiu disclosed that he had discussed a substantial potential price reduction with current President Bola Ahmed Tinubu earlier in September 2023.
The prospect of lower cement prices in Nigeria is often reported, but prices remain stubbornly high. On 28 September 2023, the regional monarch of Idjerhe Kingdom, King Udurhie I, called on the new national President Bola Ahmed Tinbu to reopen the mothballed Madewell Cement Factory in Idjerhe, and five others like it throughout Nigeria, in an effort to increase supply and introduce competition to a market dominated by two or three major players.
King Udurhie toured the Madewell facility with regional chiefs, stating “It is 15 years ago that this project was brought down by cabals in the cement industry. As a King of this land, I see pain and I believe that, with the coming in of President Tinubu, a man who is business-oriented, he knows the importance of the cement sector to the Nigerian economy. The cement industry is too large for one man or one company to deal in, no individual can do this.”
Producers warn against speed of transition to concrete roads in Nigeria
25 September 2023Nigeria: The Cement Producers Association of Nigeria (CPAN) has warned that the federal government’s plan to introduce concrete roads will nearly double the price of cement. It also called on the administration to ‘permanently address’ perennially high cement prices in the country by encouraging greater participation in the sector.
CPAN, in a statement jointly signed by its National Chair, Prince David Iweta and National Secretary Chief Reagan Ufomba, commended the government’s stance on converting the country to concrete-based roads, but suggested greater emphasis on road designs that allow both concrete and asphalt pavement to run concurrently and provide ample time for a smooth transition that allows contractors and producers time to adjust.
The statement read “While we commend the Honourable Minister’s position on concrete-made roads, we warn of the dire consequences if the supply end is not properly addressed. In fact, it would amount to dereliction of duty not to intervene. And the time is now. To do otherwise is to continue in a worsening pipe dream that prices would suddenly drop for this essential input that will continue to drain the purse of Nigerians, render them homeless, encourage chaos between demand and supply, and worsen the infrastructure deficit it sets out to cure, and lead to an unprecedented price hike.”