Displaying items by tag: Shortage

Afghanistan: Ghori Cement says that its Baghlan cement plants currently produce 600t/day of cement, corresponding to annual production of 0.22Mt/yr. The producer states that production is restricted by shortages of electricity and vehicles. With regular supply of these, it would increase its production by 33% to 800t/day (0.29Mt/yr), according to the company.

Production at the Baghlan cement plants was previously suspended for four months in mid-2022 due to high coal prices. This was resolved when the government began supplying the plants with coal at a pre-agreed price. The plants then reopened with a daily production of 520t/day (0.19Mt/yr), up by 49% from 350t/yr (0.13Mt/yr).

The provincial government said that an upgrade with equipment from China and Iran since increased production by 15% to its present 600t/day (0.22Mt/yr).

Paraguay: Industria Nacional del Cemento (INC) has suspended cement production and despatches at its Vallemí cement plant in Concepción. The La Nación newspaper has reported that torrential rain washed away raw materials stocks stored at the site. INC expects the plant to remain shut until 17 March 2023. It reassured customers that its Villeta grinding plant will continue to despatch cement as usual. CEO Ernesto Benítez said that it was 'inconceivable' that the suspension would not disrupt the domestic cement supply, given INC's 40% market share.

Mexico: The government is expected to 'implement import facilities' to support the import of more cement into Mexico. Local press has reported that the measure is a response to local cement shortages in 'several regions,' above all in Southeast Mexico. The government also expects imports to lower domestic cement prices.

Mexico has a domestic cement production capacity of 42Mt/yr. This fell short of national consumption in 2022.

Nepal: Hetauda Cement Udyog has resumed operations at its Hetauda cement plant after receiving a 1600t delivery of imported coal. República News has reported that importers sourced the coal from Bhutan, India, Indonesia and Pakistan. The Hetauda cement plant had been out of operation since 10 February 2023 due to a lack of coal. The producer said that the latest delivery will last it until 11 March 2023. The producer had ordered 8000t of coal.

Uzbekistan: The government has ordered a partial transition of industries, including cement, to coal fuel from natural gas. The Turan Information Agency has reported that the ordinance, entitled Accelerating the Introduction of Renewable Energy Sources and Energy-Saving Technologies, will create an additional coal demand of 1.63Mt/yr and reduce national gas consumption by 926Mm²/yr. From 1 April 2023, the government will halve tariffs on coal imports, while the construction of new gas pipes to industrial facilities will be banned from 1 May 2023.

Cuba: Corporación Cementos Cubanos’ has resumed production once more at its Siguaney integrated cement plant in Sancti Spíritus Province. The plant was closed for the last seven months of 2022 due to technical issues. Escambray News has reported that plant manager Gonzalo Reina Aguilar said that imported refractory bricks proved crucial to the successful repair operation. Reina Aguilar also noted a ‘better energy situation’ in the country, ensuring the plant of its ‘necessary allocations’ in future.

Corporación Cementos Cubanos hopes that the return of the Siguaney plant to regular operations will help to ease a shortage of cement in Sancti Spíritus and neighbouring Ciego de Ávila.

Taking a look at the most read news stories on the Global Cement website in 2022 reveals what readers have been interested in. The usual bias applies due to the prominence of countries where English is prevalent and there is a concentration on stories from earlier in the year. Yet, even with these constraints, key trends identified elsewhere emerge. Read the December 2022 issue of Global Cement Magazine for a roundup of what we think has been noteworthy.

Top 10 news stories on Global Cement website in 2022

1. Holcim receives bids for Ambuja Cements
2. JK Lakshmi Cement and TARA to launch limestone calcined clay cement production
3. Ramco Cements to commission new plant at Kurnool in February 2022
4. CalPortland to buy Redding cement plant from Martin Marietta
5. ACC launches Houses of Tomorrow in India
6. CRH exits Russian market
7. HeidelbergCement freezes investments in Russian operations
8. US facing cement shortage
9. HeidelbergCement, Holcim and Sabancı Holding are potential buyers for Sika’s US assets
10. Jaiprakash Associates seeking to sell all assets

The two large India-based acquisition and merger (M&A) stories are both present at early stages of their development. Firstly, Adani Group went on to buy Holcim’s two subsidiaries, Ambuja Cements and ACC, becoming the second largest cement producer in the country. Secondly, Jaiprakash Associates was reported to be in dire financial straits in the autumn and looking to sell off more assets. This came to pass in mid-December 2022 when Dalmia Cement (Bharat) reached a deal to buy Jaiprakash Associates’ cement assets for US$684m. Incidentally, Adani Group made the news this week when it published plans to suspend production at two of its newly acquired cement plants in Himachal Pradesh due to high freight rates. The state government responded with a court order requiring the cement producer to justify its actions that, in its view, would detrimentally affect the lives of many. While it seems unlikely that the plants will close permanently, this incident does demonstrate that Adani Group is starting to take action with its new cement business.

The other M&A story concerns cement companies buying assets outside of the standard cement, concrete and aggregates triad. Global Cement has covered this business shift increasingly since Holcim acquired Firestone Building Products in 2021. The story in 2022 that readers were interested in concerned potential buyers for Sika US, an admixture manufacturer. This one also has a sustainability angle because admixtures can be used to make cement and concrete more efficient in different ways. A more obvious example of cement production becoming more environmentally friendly was that of an India-based cement producer preparing to start production of limestone calcined clay cement (LC3). The increased production of blended cements around the world has been a big story in 2022, particularly in the US.

Cement shortages in parts of the US were a theme we picked up on a few times in 2022. Nationally it followed supply issues in the southwest in early 2021 that led Cemex to restart a mothballed kiln at a plant in Mexico with the express aim of serving the export market.

In April 2022 shortages were being reported on the other side of the country in Alabama and South Carolina. Ultimately this was blamed on labour and supply chain issues in the aftermath of the coronavirus shutdowns. The other big US story in 2022 was back in California where CalPortland agreed to buy the Redding cement plant from Martin Marietta. The subsidiary of Japan-based Taiheiyo Cement later struck a further deal to buy the Tehachapi plant, also from Martin Marietta, in August 2022. Both of these integrated plants were previously sold by Lehigh Hanson to Martin Marietta in 2021. In November 2022 Lehigh Hanson announced that its remaining integrated unit in California, the Permanente plant near Cupertino, was going to be transitioned to a distribution and quarry site.

Finally, the top news stories in 2022 where not immune to the effects of the Russian invasion of Ukraine. The big underlying narrative has been a jolt to global energy prices. What could be seen here though were the efforts of the multinational cement producers to limit their exposure to the market in Russia and any potential legal action. CRH led the exodus, although it had a relatively small business to offload. Heidelberg Materials froze its investments in its Russia-based subsidiary in March 2022. Holcim completed the divestment of its business to local management in mid-December 2022. Buzzi Unicem withdrew from any operational involvement with its subsidiary SLK Cement in May 2022.

That’s it from Global Cement Weekly for 2022. Enjoy the seasonal and New Year break if you have one.

Global Cement Weekly will return on 4 January 2023

South Korea: Truck drivers went on strike across South Korea on 24 November 2022. Reuters News has reported that the drivers demand that a government pay scheme be made permanent and extended to drivers in all sectors. A previous eight-day strike in June 2022 cost the South Korean cement industry US$79.8m. The Korean Cement Association said that most customers do not have cement in inventory beyond three days' supply, and will begin to run out from 27 November 2022.

Czech Republic: Lafarge Cement says that an on-going national cement shortage due to high operating costs will likely continue into 2023. MACR News has reported that Lafarge Cement chief executive officer Miroslav Kratochvíl said that the producer's Čížkovice cement plant would have suspended deliveries altogether if not for its existing commitments to customers. The company's pre-existing deals for its power supply enabled it to restrict energy costs growth to less than double 2021 levels in November 2022. Fuels, including alternative fuels, and other raw materials, are also at a price high due to shortages.

Lafarge Cement expects Czech construction activity to decline by 5 - 10% year-on-year in 2023. Kratochvíl said "We would welcome a slight drop in demand."

Malaysia: Cahya Mata Sarawak has informed its customers that its cement despatches will be 'back to normal' by 6 November 2022. The producer's closure of its 1Mt/yr Kuching cement plant for maintenance, followed by unexpected raw materials supply issues, has caused a shortage of cement in western Sarawak State. Bernama Daily Malaysian News has reported that a 14-day delay to raw materials deliveries to the Kuching plant ensued due to heavy rains.

The producer said “We would like to apologise for the shortage of cement, and will strive to ensure a steady supply of cement to all of our customers.”

Cahya Mata Sarawak has successfully maintained regular supply of cement to other areas of Sarawak, including Bintulu, Miri and Sibu, through despatches of cement from its Bintulu grinding plant.