Displaying items by tag: Report

World: A multi-client market report by OneStone Consulting S.L., of Barcelona, Spain was released on 15 December 2015.

According to the report, the global white cement market has seen a recovery after some years of slow growth. "The global annual growth rates are projected to increase from 2.5% in 2010 - 2015 to an average annual growth of 3.8% by 2020, with lowest growth in China," said research analyst Joe Harder. In 2015, global trade was improving. However, capacity utilisation rates of many producers remained low. New projects are in the pipeline, overcapacity issues will continue, prices continue to be under pressure and the global trade share is forecaste to decline.

The White Cement Outlook 2020 report analyses the global white cement industry. The data includes global and regional markets, market trends, the installed production base of all producers, regional market shares of the major producers, net trade and total trade, regional imports and exports, consumption by countries, market drivers, price trends, economies of scale and various benchmarks of the top producers, including Aalborg, Birla White, Çimsa, Federal White, JK White, RAK White and Sotacib. In the new report the latest data is available with data sets for 2015. The market report provides a five-year projection with an outlook of the market by 2020, including regional production and consumption, per capita consumption cement trade, cement capacities and a number of identified white cement projects.

Egypt: The Sinai Cement Company (SCC) has reported a US$3.6m net loss in the first half of 2015 compared to a profit of US$11.2m in the same period in 2014. Overall profits declined to US$4.2m from US$23m. On a quarterly basis, the firm lost US$1.3m in the first quarter of the year compared to a net profit of US$4.5m in the same period in 2014. The company operates a cement production facility in North Sinai.

Kenya: The East African Portland Cement Company (EAPCC) has adjusted its previous financial reports following the discovery of a theft of cement worth US$2m. The fraud led to the under-declaration of its overdraft by US$1.4m for cement lost in 2012, with the firm also overstating its sales and VAT payments by the same amount.

"The company lost cement worth US$1.4m and US$0.66m during the years ending 30 June 2012 and 30 June 2013 respectively through fraud, which was discovered in 2013," the EAPCC said in its latest annual report.

"The financial statements have been restated to correct these misstatements."

The Treasury and the National Social Security Fund (NSSF), which have a combined stake of 52% in the EAPCC, have questioned the accuracy of the EAPCC's accounts, which are examined by the National Audit Office and its agent Ernst & Young. The EAPCC management has disputed this claim.

In 2013, EAPCC suspended seven of its employees who were charged with allegedly stealing cement worth US$2m.

UK: Emissions from the UK cement industry have risen slightly according to the Sustainable Development Report 2012 from the Minerals Products Association (MPA) – Cement.

The MPA reported small rises in nitrogen oxides, sulphur dioxide and dust emissions compared to 2011 due to variety of factors. However, the MPA stressed that all emissions remained below the targets for the sector and limits required by the Environmental Permitting Regulations. Carbon dioxide emissions from cement kilns also rose compared to 2011 due to an increased production of CEM I type cement. Improvements were reported in 2012 year-on-year for lost time injuries and use of alternative fuels.

"Our sustainable development challenges are many and varied, but our strength lies in recognising what these are, setting them out clearly for external stakeholders to see, implementing the measures necessary to meet these challenges and reporting on progress. This first full sustainable development report for the UK cement industry is an important step along a journey that is leading us to a more sustainable future," Dr Pal Chana, Executive Director of the MPA, said. The report has changed from previous editions by commenting on the broader sustainable development aspirations of the UK cement industry in addition to reporting on the manufacturing process.

South Africa: An order by South African competition authorities to delay cement industry statistics by three months will negatively affect perceptions of economic activity in the country, according to industry newcomer Sephaku Cement.

The CEO of Sephaku Pieter Fourie said that the directive by the South African Competition Commission to the Cement and Concrete Institute that it delay the publication of its quarterly national cement sales figures by three months made 'no sense'. The institute represents the four major cement producers in South Africa: Pretoria Portland Cement, AfriSam, Lafarge and NPC-Cimpor.

Sephaku, a Nigerian-backed newcomer, is building an integrated cement production facility in the Limpopo province, where it intends to produce cement from the fourth quarter of 2013. It says that cement sales form a large component of construction activity in South Africa and are a leading economic indicator. Sephaku believe that the change in reporting will affect related economic predictions.

Stephan Olivier, CEO of AfriSam, commented that the change in industry reporting was a bid to make it difficult to use the data for anti-competitive behaviour. Simon Roberts, chief economist and manager of the commission's policy and research division, said that companies had previously used the data provided by the institute to 'monitor' their cartel agreement.

Projects by Nigerian-backed Sephaku and a new Chinese-backed empowerment entity, Conticem, will boost South Africa's capacity by nearly 5Mt/yr. Both Sephaku and AfriSam anticipate a better industry outlook in 2012 but uncertainty remains over the government's ability to accelerate its infrastructure plans.

Philippines: Holcim Philippines expects a modest growth rate of 5-6% in 2012 as it attempts to recover from a steep drop in net profit in 2011, according to its chief operations officer Roland van Wijen.

The Philippine subsidiary of Switzerland-based Holcim Ltd posted a net profit of US$47m in 2011, down by 47.1% from US$90m in 2010 because of weak demand and higher production costs. Sales revenues dropped 9% to US$496m due to a surge in prices of coal and electricity, the biggest cost components in cement production.

"Last year was a challenging year for us because reduced government spending meant that there was less structure built, which has a direct correlation to cement consumption. Also, the (operational cost) has been increasing which had a marked effect on our bottom line. Those are the elements we are recovering from," Van Wijnen said at the launch of Holcim's new CSR project. He added that the company is currently cutting production cost by stepping up the use of waste materials as an alternative to coal.

Holcim Philippines currently has a market share of one third of the cement industry and at present the company has no plans of expanding its market share. "We will go there when our customers want us to go. Right, now, the market has an over-capacity so significantly increasing our market share will not contribute to growth," Van Wijnen said.

Van Wijnen said the company's growth would be greatly driven by more projects that would be approved under the government's Public-Private Partnership (PPP) scheme. The company is pursuing opportunities for supplying winning bidders in the PPP projects. Van Wijnen said the company is optimistic that both the government and the private sector would increase infrastructure spending this year.

With a workforce of over 1700, Holcim Philippines operates four plants in La Union, Bulacan, Misamis Oriental and Davao. In January 2012 Holcim reopened its cement plant in Calaca, Batangas, to take advantage of an anticipated surge in demand for new buildings and infrastructure in Metro Luzon.

Kuwait: Gulf Cooperation Council (GCC) cement companies have emerged from two years of decline following the credit crisis with a strong 14.2% increase in revenue, according to a report by Global Investment House. Sector profits, however, increased by 2.7% in 2011. Revenues reached US$4.6bn in 2011 compared to US$4bn in 2010. Net profits increased from US$1.44bn in 2010 to US$1.48bn in 2011.

By country, Saudi Arabia, Oman, United Arab Emirates (UAE) and Kuwait overturned declining revenues in 2010 and all four countries reported increasing sales for 2011 except Qatar. UAE, which witnessed declining sales revenue since 2008, enjoyed a 5.9% increase in sales to reach US$940m. Yet net profit was negative for the first time since the researchers started to compile UAE cement data.

Oman witnessed a 12.8% increase in sales revenue reaching US$342.3m in 2011, the second highest revenue in Oman's cement history. However Oman reported a 39.4% decrease in profits in 2011. Kuwait reported a 5.4% increase in revenue reaching US$66.9m in 2011, but it posted a 47.1% decrease in net profits compared to 2010. Qatar was the only GCC country reporting declining sales and profits. Saudi Arabia posted a healthy 22.6% increase in sales revenue and a 25.2% increase in net profits in 2011.

According to Saudi government officials, Saudi Arabia will spend an estimated US$400bn on large infrastructure projects from 2012 until 2017. Ever since the country banked upon diversification, the cement sector witnessed a tremendous pick up in demand from less than 20Mt in 2005 to 49Mt in 2011. In the wake of increasing demand locally, the government imposed a conditional ban on cement exports in 2010 that further pushed demand. Saudi Arabia lifted a ban on cement imports in March 2012 and neighbouring exporter nations, Oman and the UAE, are expected to benefit greatly from the change.

Saudi Arabia: Government spending and increased economic activity will fuel strong demand for cement in 2012, according to a new report from NCB Capital.

The report, which concentrated on Southern Cement and Saudi Cement due to their spare capacity and high stock levels, indicated that cement prices increased by an average of 14.1%. Demand is anticipated to grow by 10% in 2012 and by 8% in 2013, driven by increasing government spending on infrastructure projects combined with private projects. Sales are expected to grow by 10.8% in 2012 to reach 52.2Mt.

According to the report, market activity is shifting from the central region to the western region of the country. The western region is now the centre of mega projects such as the Haramain railway, Jeddah's new airport and major drainage and other infrastructure projects. Demand in the central region nonetheless remains strong but has stabilised.

Fuel shortages remain the key supply constraint. Cement industry players believe the reason for the ongoing higher prices faced by retail buyers is mainly due to higher costs from the transportation companies. For example, a transportation company's truck that was able to make two trips a day to the cement factory can now only make one trip every three days due to the high demand and backlog at the local cement plant, thus increasing the cost for transportation companies. It is believed that prices will remain elevated in the short term due to the supply constraints and also in the medium term due to the strong demand outlook.

The economics team at NCB estimated that the 2012 government spending was 13% higher than budgeted at U$S280bn in addition to the US$32bn allocated to build 500,000 housing units. "We believe the elevated levels of government spending, particularly housing projects, will boost demand for cement," the report said.

Denmark: The board of Danish cement plant producer FLSmidth has released financial results for the three months to 31 December 2011, which show that earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 57% to Euro133m compared to Euro89.1m in the final quarter of 2010. The company recorded a revenue of Euro979m, up by 32% year-on-year from Euro742m. Its order intake also increased by 32% to Euro787m for the quarter compared to Euro595m.

For the whole of 2011 the group's revenue increased by 9% to Euro2.95bn and its EBITDA increased by 11% to Euro356m. Its net profit was up by 12% to Euro193m compared to Euro180m in 2010.

FLSmidth said that its cement sector remained solid despite a difficult market. In 2012 the company expects a consolidated revenue of Euro3.2-3.5bn exclusive of acquisitions. In the cement sector it expects a slight increase in revenue over 2011's Euro592m.

UK: A report by Markit/CIPS has shown that the UK construction industry as a whole experienced a slow down in January 2012. Jason Heath, a construction specialist at Bibby Financial Services said, "The latest Markit/CIPS survey highlighted that the construction sector slowed down in January 2012. Although the numbers indicate a fall in productivity, the survey also revealed that construction managers and owners are feeling optimistic for the first time in eight months."

"This optimism is perhaps down to construction firms having a particularly successful December 2011, potentially due to milder weather conditions and infrastructure projects commencing, which surprised economists who had predicted a decline towards the end of 2011," he continued. "In order to retain this positive outlook, the government needs to make funding the construction industry a priority by making it more accessible to firms so this sector can continue to provide a vital contribution to the UK economy," concluded Heath.