Displaying items by tag: US

Ed Sullivan was present to tell Global Cement Live viewers about the Portland Cement Association’s (PCA) autumn forecast last week. The PCA expects US cement consumption to drop by 1.5% year-on-year on 2020. This is a weighted average of its three projections, which cover a gradual recovery from coronavirus-related economic disruption, a less controlled scenario and one where wide-spread vaccination has a positive effect in the second half of 2021. The first scenario is the PCA Market Intelligence’s most likely one but only the fast vaccination scenario predicts a return to growth in 2021. This is wide but understandable deviation from the PCA’s autumn forecast in 2019 that expected moderate growth albeit a slowly weakening economy. Almost nobody seriously expected 2020 to turn out like it has. Follow the link at the bottom of this article to view the presentation in full.

Graph 1: Portland & Blended Cement shipments by US region in 2019 and 2020. Source: United States Geological Survey (USGS).

We’ll now take a general look at the US cement industry so far in 2020 to compliment Sullivan’s economic overview. Up until 2020 cement consumption, production and imports had been growing steadily since the financial crash in 2008. Using August 2020 data the PCA says this is changing. Graph 1 above shows a general reverse of the position in the autumn of 2019 [LINK] with declines in the South and North-East and growth in the West and Midwest. Imports alongside this have continued to build. Overall, national cement shipments increased by 2.2% year-on-year to just under 50Mt in January to July 2020 from 48.9Mt in the same period in 2019. This was driven by growth of 10.8% in the Midwest. Missouri is the standout in the region, behind only Texas and California nationally as the third biggest cement shipping state so far in 2020.
From the corporate side, LafargeHolcim, the US’ biggest cement producer, described North America as having, “…the most resilience of all regions despite Covid-19 restrictions in some areas.” It reported an overall fall in cement volumes of 1.4% year-on-year to 8.9Mt in the first half of 2020. However, it didn’t go into specifics for the US. Cemex’s experience seemed to be doing better with an 8% rise in cement volumes supported by the infrastructure and residential sectors. HeidelbergCement went further and described the impact of coronavirus on the US economy as ‘significant.’ It reported a decrease in cement deliveries at its North American plants of 4.9%, to 7.1Mt. Both Buzzi Unicem and CRH reported cement sales growth of 4 – 5%, with CRH noting that, “strong volume trends in West supported by growth in our downstream businesses drove performance.”

Perusing the industry news reveals a slew of environmental stories. So far in 2020, Holcim US said it was going to run a carbon capture and storage (CCS) study at its Portland cement plant in Colorado, Alamo Cement signed a deal to build a solar farm, Grupo Cementos de Chihuahua’s (GCC) Rapid City plant in South Dakota announced plans for a wind farm, CalPortland launched a sustainable product line with a lower clinker factor, LafargeHolcim launched its ECOPact low-carbon concrete range, LafargeHolcim US also said it was adopting new environmental product declarations and Holcim US opened a solar power plant at its Hagerstown cement plant. There have been a few upgrade stories, like the new line being built at National Cement’s Ragland plant in Alabama or Lhoist’s new lime kiln projects, but Lehigh Hanson said it was suspending work on the upgrade to its Mitchell plant in Indiana in April 2020.

At this point all eyes are on the US Presidential election scheduled to run on 3 November 2020. Donald Trump’s long promised but never delivered infrastructure still hasn’t arrived although blame could be apportioned to both sides of the local political divide for this. The PCA believes that both presidential candidates will probably see it through although the Republicans’ interpretation might well involve more cement! In the interest of balance though, it also expects the Democrats to focus on low-income housing construction. At this stage it seems more likely that the early arrival of a coronavirus vaccine will have more impact on the cement industry in the short to medium term than the results of the election.

View Ed Sullivan’s presentation at Global Cement Live

US: The Portland Cement Association (PCA) has forecasted a fourth-quarter cement demand decline of 1.5% year-on-year in 2020, slowing to 0.9% throughout 2021. It said that all three of its post-coronavirus economic recovery scenarios involved a decline until mid-2021, primarily due to “weak construction sectors specifically within retail, hotel and office” non-residential markets, though in the best-case scenario a vaccine could prompt a recovery in these sectors, reducing total demand decline to 0.1% in the second half of 2021. A worst-case ‘W-shaped’ scenario would result from state governments implementing second lockdowns.

Senior vice president and chief economist Ed Sullivan said, “We think that the gradual sustained recovery – the 'U' – has the largest likelihood, followed by the 'vaccine' scenario. The growth-interrupted 'W' scenario is the least likely. He said that in each case federal spending in the fourth quarter of 2020 and the first quarter of 2021 would be essential “in preventing a deep and prolonged downturn in economic recovery,” as it did in the second and third quarters of 2020.

North America: Germany-based Schenck Process has awarded a contract for the supply of “fitting connectors, spigots and bulk bag loaders to one of its North American plants” to original equipment manufacturing (OEM) company BFM Global. It says it will integrate BFM Global products in pneumatic conveying, dust collection, weighing and feeding systems produced at the plant, all of which it sells to the cement industry.

Americas regional president Jay Brown said, “Entering this partnership with BFM Global aligns with our strategy of providing industry recognised parts and system components to our customer base. Working with a company that understands the challenges of bulk material handling strengthens our solutions capabilities. We look forward to what this partnership will bring to Schenck Process and the customers we serve.”

Cuba/US: A court in Florida has accepted a request for damages worth US$270m from LafargeHolcim to over 20 parties from Cuba whose land was nationalised and subsequently had a cement plant built on it. The claim alleges that Switzerland-based Holderbank has held a stake in the partly-state owned Carlos Marx cement plant near Cienfuegos since 2001 via a deliberately “complex network of letterbox companies and transactions” in the Netherlands and Spain, according to the Tages Anzeiger newspaper. Holderbank later became Holcim and then LafargeHolcim.

The building materials producer’s alleged involvement may constitute a violation of the US embargo on trade with Cuba for companies active in the US. The claim has been aided by a clause in the US’s Cuban blockade law, activated by President Donald Trump, enabling Cubans to claim damages in US courts for expropriated property from private companies which profited from them.

US: LafargeHolcim subsidiary Holcim US has opened a 10MW solar power plant at its Hagerstown, Maryland cement plant in partnership with Greenbacker Renewable Energy Company. The producer says that the power plant will supply 25% of the cement plant’s energy needs, reducing its carbon dioxide (CO₂) emissions by 12,400t/yr.

LafargeHolcim cement US operations chief executive officer (CEO) Jamie Gentoso said, “As solar technologies continue to improve, this abundant energy source stands out as both a sustainable and economical solution to follow through on our commitment to minimise emissions and reduce our carbon footprint. We already have access to large areas of land with a high concentration of sunlight, so utilising solar energy is an easy decision. As we strive toward becoming a net-zero company, clean energy is a key part of our strategy. We hope to install enough renewable energy to power all of our plants and give back to the surrounding communities by 2026; this new solar array is just the beginning for us.”

US: The North Dakota Department of Transportation (NDDOT) has signed a contract with drone supplier Botlink InSite to serve its drone surveying and mapping needs for management of aggregates used in building transport infrastructure.

Chief executive officer (CEO) Terri Zimmerman said, “We’re excited to add the NDDOT to our ever-growing list of customers. Our users see real cost savings by quickly getting accurate data, including reducing overproduction and underproduction.” She added that the drones can also serve cement companies in managing their raw materials stores.

US: The Wildlife Habitat Council has named Cemex USA the winner of the Corporate Conservation Leadership Award 2020. The award signifies “an exemplary corporate commitment to biodiversity and conservation education, and meaningful alignments with global conservation objectives.”

Director of Sustainability Vicente Saiso said, “We are privileged to receive the Corporate Conservation Leadership Award from the Wildlife Habitat Council. This recognition is testimony to our successful efforts and fosters our commitment to continue embedding sustainability in every aspect of our operations. To date, we have achieved certification for 30 programmes and community environmental initiatives in our operations around the world, with the highest standards of environmental conservation and biodiversity restoration.”

Projects include collaborations in the US and further afield with the California State Wildlife Action Plan, the Friends of Verde River Cooperative Invasive Plant Management Plan, BirdLife International, the El Carmen Nature Reserve Action Programme and a black bear research initiative, as well as the Mexican Strategy for Chihuahuan Grasslands Conservation, the Dominican Republic National Annual Plan and Panama's Alliance for a Million Hectares.

US: The Portland Cement Association has launched greenercement.com, an informative website site dedicated to Portland Limestone Cement (PLC) applications and benefits. The organisation says that PLC’s 10% reduced carbon dioxide (CO₂) emissions when compared with Ordinary Portland Cement (OPC) make it the sustainable choice for innovative construction.

President and chief executive officer (CEO) Mike Ireland said, “PLC is another example of the cement industry evolving over the years, continuing to innovate and sustainably producing the high-quality cement that is needed to help keep America’s infrastructure strong and resilient.” He added, “This initiative will help educate engineers and other specifiers on how PLC can easily be incorporated into numerous projects.”

US: A US federal court has upheld the ruling of a Colorado district court that Mexico-based Grupo Cementos de Chihuahua (GCC) must pay around US$36m compensation to Compañía de Inversiones Mercantiles (CIMSA) for failing to grant it a right of preference prior to GCC’s sale of its 47% stake in Sociedad Boliviana de Cemento (SOBOCE).

Peru-based Consorcio Cementero del Sur obtained 100% ownership of Bolivia-based SOBOCE following its acquisition of GCC’s stake in 2011.

US: SSI has announced the launch of the Pri-Max, a primary shredder “built to reduce the volume of bulky materials while achieving processing rates of up to 150t/hr.” The product design incorporates new patented technologies, including “a new method for maintenance and replacement of wear parts as well as major assemblies.” The company says that this will “substantially decrease maintenance costs and improves ease of use.”

Director of sales and marketing Dave Fleming said “The Pri-Max is typically the first step in large processing systems, making it a critical component to customer productivity and success. Customers wanted longer service intervals and more flexibility in how they could choose to maintain wear parts in their machines.”