Displaying items by tag: Sales

Iran: Iran has exported over 11.79Mt of cement and clinker during the first seven months of the current Iranian fiscal year, a period spanning 21 March 2014 to 22 October 2014. The Secretary of Iran's Cement Industry Employers Association, Abdolreza Sheikhan said that 8.1Mt of cement and 3.6Mt of clinker was exported.

Sheikhan added that around 32.5Mt of the country's total cement output was distributed in domestic markets during the first six months of the current fiscal year. Iran produced 41.6Mt of cement in the first seven months of the Iranian fiscal year. It exported over 20Mt of cement during the previous fiscal year.

Iran's Industry, Mines and Trade Minister Mohammad Reza Nematzadeh has forecast that the country's cement export will hit 120Mt/yr by 2025.

China: Anhui Conch Cement Co Ltd has announced that its output and sales of its major subsidiaries hit record highs in September 2014.

Its Foshan subsidiary in Guangdong Province saw sales exceed 10,000t/day for five consecutive days in September 2014, with average sales stablising at 8000t/day. Anhui Conch claimed that the subsidiary's September 2014 output, sales, clinker and cement production all hit new highs in 2014, with output and clinker cement production reaching historical highs.

In Jiangxi Province, its Ganjiang subsidiary witnessed 67% year-on-year growth in sales in September 2014. Anhui Conch's production in Guangxi was also robust. Its Beiliu unit completed 104% of its production target in the third quarter of 2014, while its Tongling unit produced over 10Mt of clinker cement in the first nine months of the year.

Pakistan: During the first quarter of the current fiscal year, which began on 1 July 2014, the Pakistani cement industry posted growth of 9.9% in local sales compared with sales during the first quarter of previous fiscal year. However, exports declined by 8.1% compared with exports during the year-earlier quarter. Overall growth was 4.9% year-on-year for the quarter.

Cement despatches to domestic markets during the month of September 2014 were 2.42Mt, compared with 2.12Mt during September 2013, an increase of 13.9%. Exports during September 2014 were 0.73Mt against 0.82Mt during September 2013, a decline of 10.6%. Total despatches during September 2014 were 3.15Mt compared to 2.94Mt during the same month of 2013, an increase of 7.1%.

Officials said that Pakistan's cement industry is already facing a lot of issues due to high duty/tax structures, impractical imposition of sales taxes, increasing coal import duties, increasing power tariffs and axel load restrictions for haulage trucks that limit load capacities. Now they claim that it is also facing smuggling from Iran.

Domestic cement uptake in the south of the country is being seriously affected due to the influx of Iranian cement. Statistics showed that, against a 10.8% increase in domestic sales in the north during the first quarter of the current fiscal year, the domestic sales in the south showed an increase of only 5.4%.

A spokesman from the All Pakistan Cement Manufacturer's Association (APCMA) pointed out that despatches in the south should have been higher because the exports from this region during the first quarter of the current fiscal year increased by 12.2% to 0.78Mt against 0.70Mt during same period in 2013. On the contrary, exports from the north of Pakistan declined by 17.3% to 1.28Mt during the first quarter against 1.56Mt during same period last year.

The spokesman said that such lopsided sales are 'puzzling' at a time when the economic activities in the south have picked up appreciably. He said that a deep analysis of the situation revealed that the consumption has most probably increased at par or higher than the northern region but that Iranian cement smuggled without paying the duties and sales tax has penetrated the southern market, which is close to the Iranian border.

India: The Tamil Nadu government has announced the 'Amma Cement Scheme,' under which it will procure cement from private manufacturers with the intention of re-selling at a set price in the event of a possible future price increase.

J Jayalalithaa, Tamil Nadu's chief minister, said that she had recently discussed the situation regarding production of cement from the state and supply from outside with officials. Tamil Nadu consumes 1.7 – 1.8Mt/month of cement. Some 400,000 – 450,000t is supplied by Andhra Pradesh, where prices have recently risen substantially. As such, Tamil Nadu has reduced its purchases from Andhra Pradesh to 150,000 – 300,000t/month. However, Tamil Nadu's cement producers have risen their own prices as demand grows.

The Amma Cement Scheme was created in response. The Tamil Nadu government will purchase 200,000t/month of cement from private manufacturers and re-sell it through local distributors. Beneficiaries are eligible for a maximum of 750 bags and the cement could be bought by submitting a government-approved building plan or aroad plan. Those who want to buy cement for repair and renovation are eligible for 10 - 100 bags. Tamil Nadu Cement Corporation will be the nodal agency and the scheme will be implemented by Tamil Nadu Civil Supplies Corporation and Rural Development Department.

Pakistan: After posting cement dispatches of 3Mt/month between March and June 2014, Pakistan's cement dispatches were down to just 2.23Mt in July 2014. This compared unfavourably to dispatches of 2.6Mt in July 2013. Domestic dispatches of 1.75Mt were down by 6.5% year-on-year compared to July 2013. Cement exports dropped by a third from 0.75Mt in July 2013 to 0.5Mt in July 2014.

The poorer export performance was mainly attributed to a reduction in quantities sold to Afghanistan where against exports of 0.44Mt in July 2013 were reduced to just 0.18Mt in July 2014. According to industry experts, this trend is likely to continue in the coming months as NATO forces prepare to leave Afghanistan. The massive decline, over 58%, also indicates declining competitiveness of Paksistani cement in the global market where other regional players like Iran are making inroads.

Brazil: Lafarge and Holcim have announced further details on their proposal for comprehensive divestments in Brazil as part of their planned mega-merger to create LafargeHolcim.

As announced on 7 July 2014, and to anticipate potential competition authorities' requirements, the joint Divestment Committee has agreed to propose to Brazilian competition authority CADE a package of high-quality assets from both Holcim and Lafarge. This will include three integrated cement plants and two grinding stations that share a combined capacity of 3.6Mt/yr. Also included is one ready-mix concrete plant in the south east of the country.

These proposed divestments have been presented to CADE in the context of pre-filing negotiations and will now be subject to review and further discussion until a final decision is reached with the authority.

The divestment process will be carried out in the framework of the relevant social processes and on-going dialogue with the employee representatives' bodies and will be conducted in parallel to discussions with the competition authorities and potential buyers. The divestment process will be completed subject to the closing of the merger between Holcim and Lafarge.

A Lafarge and Holcim joint statement said that Brazil is an important market for the future LafargeHolcim Group and that the company will remain committed to the country, serving customers from a network in cement, aggregates and ready-mix concrete.

China: China's building materials sector remained sluggish as the property market showed no signs of warming, according to the National Development and Reform Commission (NDRC). Cement output rose by 3.6% year-on-year to 1.14Bnt in the first half of 2014, slowing by 6.1% points from the expansion seen during the same period of 2013. The data pointed to the continuing weakness in the property market. The average home price in 70 Chinese cities fell by 0.47% during June 2014, the second consecutive monthly drop after a 0.15% fall in May 2014.

Philippines: The Cement Manufacturers Association of the Philippines' (CeMAP) president, Ernesto Ordonez, said that total cement sales for the first half of 2014 reached 10.72Mt, up from 10.14Mt for the first six months of 2013. For the second quarter of 2014 alone, cement sales climbed by 3.2% to 5.52Mt from 5.35Mt in the comparable period of 2013. Compared to the first quarter's 5.19Mt, cement sales in the second quarter of 2014 grew by 6.19%. The increase in sales was seen amid higher demand from both the public and private sectors.

Ordonez said that there was a Department of Public Works and Highways (DPWH) budget increase, while the private sector continued to grow because of increased confidence in the government. The latest data from the Department of Budget and Management (DBM) showed that government spending for infrastructure and capital outlay posted a 24.5% increase to US$2.16bn as of April 2014, compared to US$1.74bn in 2013. The notable infrastructure disbursements were channelled mostly to on-going reconstruction and rehabilitation efforts in communities devastated by Super Typhoon Yolanda. The DBM said that the increase in disbursements is also due to the Aquino administration's stronger focus on strengthening the economy through infrastructure and capital outlay investments.

India: Aditya Birla Group's Ultratech Cement Ltd has reported net profits and sales for the first quarter of financial 2015, which was April to June 2014, with regards to both stand-alone and consolidated results. On a consolidated basis, Ultratech's first quarter net profit, after minority interest, was US$104m, whereas the company reported US$111m in the corresponding quarter of 2014. Quarterly net sales and other operating income amounted to US$1.00bn, while the same was at US$880m in the first quarter of the 2014 financial year. Other income stood at US$35.7m in the current fiscal year, up from US$25.4m in the 2014 fiscal year. Combined domestic grey cement and clinker sales volumes were 11.70Mt, up by 16% from 10.08Mt in the same period of 2014.

US: Eagle Materials has reported financial results for the first quarter of its 2015 fiscal year, which ended on 30 June 2014. First quarter earnings before interest and income taxes increased by 21% year-on-year to US$59.8m, as first quarter sales volumes improved across nearly all businesses areas and sales prices improved in all businesses.

Operating earnings from cement for the first quarter were US$20.5m, an 8% increase from the same quarter of the 2014 fiscal year. The earnings increase was driven by record cement sales volumes and a 5% increase in average net cement sales prices. While cement demand continues to recover, extraordinary rail congestion associated with the harsh winter weather adversely impacted the timing of cement shipments during the first quarter. Cement revenues, including joint venture and intersegment revenues, totalled US$128m, up by 9% year-on-year. Cement sales volumes were 1.3Mt, up by 4% year-on-year. The average net sales price grew by 5% year-on-year.