Displaying items by tag: market

Jordan: The country’s industrial chambers have made a statement saying that most cement plants are charging ‘average’ prices for cement despite recent rises in energy costs due to imported coal and diesel. In a joint statement the group’s said, that although some plants have increased the price of cement, it does not reflect the increase in real cost to producers, according to the Jordan News Agency. The price of cement has reportedly risen by 12% recently.

The industrial chambers noted that the sector is, “keen to stabilise commodity prices locally and maintain their sustainability." It added that it accomplished this in the interests of citizens during the Covid-19 crisis despite the high price of raw materials. The statement also noted that the country has a cement production capacity of 10Mt/yr but the local market only uses 3Mt/yr.

Kenya: Domestic cement consumption was 607,000t in February 2021, down for a third consecutive month and below mid-coronavirus lockdown levels of 723,000t in October 2020. Labour shortages and a national economic slowdown have slowed housing and infrastructure growth since 2020, while commercial construction has declined as companies opt not to invest in office space. The Business Daily newspaper as reported that uncertainty about the economic situation continues in May 2021.

UK: The Mineral Products Association (MPA) has described first-quarter building materials demand as ‘resilient’ in 2021 despite renewed coronavirus lockdown restrictions, on-going supply chain disruptions and wet winter weather. Following a recent survey the association says that continued housing activity – with increased home improvements – and an acceleration in infrastructure work, driven by a new roads programme and the start of the HS2 high-speed railway, drove minor growth during the quarter. Ready-mix concrete demand rose by 2% year-on-year, while mortar demand fell by 7% during the period. The MPA said that both products are mostly used in the early stages of construction, thus serving as a barometer for construction activity ahead in the short term.

The MPA reports that since September 2020, construction growth has remained close to zero, whilst new contract awards have been ’weak’ since May 2020. The downward trend of housing-led mortar demand in the first quarter of 2021 continues a pre-pandemic decline since mid-2018. Thus, housing activity growth is considered unlikely to continue beyond the completion of existing projects ahead of the end of a land tax holiday and a deadline in a first time buyers loan scheme. The MPA described the slow growth of ready-mixed concrete demand as ‘concerning.’ Low housing activity and few new commercial projects compounded the difficult recovery: non-infrastructure projects normally generate 60% of demand. Ready-mix concrete producers rely on London and the South East region for over 30% of sales. First-quarter volumes were 9% below the previous five-year average, despite three consecutive quarters of growth since the first coronavirus lockdown in the first half of 2020.

Director of Economics Affairs Aurelie Delannoy said, “Mineral products manufacturers are busy supplying post- lockdown pent-up demand, particularly for domestic activity such as landscaping, repair and maintenance and home improvements, as well as infrastructure projects.” She added “The outlook for this year and next is also positive, but the stakes are high. Any optimism assumes activity is not disrupted by renewed outbreaks of Covid-19 and, most importantly, relies on the government delivering on its planned infrastructure commitments. MPA members tell us they are yet to see a more clear-cut pick-up in new house building, whilst any recovery in commercial development is expected to remain muted given the current reticence for major new investments.”

Kazakhstan: Steppe Cement’s cement sales in the first quarter of 2021 were US$11.3m, up by 22% year-on-year from US$9.27m in the first quarter of 2020. Volumes increased by 13% to 266,000t from 236,000t. The company said that it remained close to full capacity utilisation. It says that it increased its Kazakh cement market share to over 13%. The market grew by 12% year-on-year in total. The producer reported an 11% price rise and constant levels of tariffs and rental expenses.

Steppe Cement forecast an increase in domestic cement demand due to government infrastructure and housing projects.

Qatar: Switzerland-based Sika has expanded concrete admixture production capacity at it Doha admixture plant. The company has also announced the start of epoxy resin production in the country. It says that its present investments target growth to serve the expanding regional construction market. Numerous major projects and the expansion of energy and utilities infrastructure have driven a growing demand. Qatar’s state sourcing policy further increases consumption of building materials produced in the country.

Europe, Middle East and Africa regional manager Ivo Schädler said "Our latest investment in Qatar positions us for continued growth and strengthens our competitiveness in the country. In expanding our production, we are anticipating a substantial increase in demand and volumes for our high-value adhesives and flooring solutions. Our building sector customers will benefit from an expanded and locally produced portfolio of Sika solutions which, in addition, eliminates long-distance transportation."

US: The Market Intelligence Group at the Portland Cement Association (PCA) has made an additional update to its Winter 2020 – 2021 economic forecast. Senior vice president and chief economist Ed Sullivan revised the association’s assessments regarding the path of Covid-19, vaccine supply, government Covid-19 relief and inflationary pressures.

The association said that it expects domestic cement consumption to grow by nearly 1% in 2021, fuelled largely by residential construction. It estimated ‘weak’ non-residential construction performance, with soft economic activity affecting government funds at federal state level. It added that the new federal government Covid-19 relief targeting state government would likely limit public cement’s drag on 2021 cement consumption growth.

Spain: Oficemen, the Spanish cement association, reports that domestic cement consumption fell by 10% year-on-year to 13.3Mt in 2020 from 14.7Mt in 2019. Consumption at this level was last reported in 1967. The 12-month accumulated consumption figure began to fall in April 2020 due to Covid-19 restrictions and the association does not expect growth in 2021 despite an improvement in December 2020. Cement and clinker exports fell by 3.4% to 5.99Mt from 6.20Mt. It has forecast anything between a 3% rise and a 3% fall in consumption in 2021, due to coronavirus-related uncertainty.

The figures suggest that capacity utilisation in the cement industry is at roughly 60% nationally, according to the El Economista newspaper. Oficemen president Víctor García Brosa said that this level ‘cannot be indefinitely maintained.’ The association called for a recovery plan committed to infrastructure development, residential construction and rehabilitation and energy efficient transport.

Mali: A strike by two hauliers unions based in Senegal has caused cement shortages. The Union des Routiers du Sénégal and the Intersyndicale du Secteur des Transports Routiers both started strike action in late December 2020, according to Bamako News. The country has three main cement plants - Ciments et Matériaux du Mali (CMM), Diamond Ciment (DCM-SA) and Ciments d'Afrique (CIMAF) – but these companies only have a production capacity of 2Mt/yr. This is estimated to be 50% of Mali’s national requirement of 4Mt/yr. Commentators have called for a national cement supply policy in response to the situation and to reduce reliance on imports.

India: Credit ratings agency ICRA expects cement demand to rise by 20% year-on-year in the 2022 Indian financial year, which starts in April 2021, allowing the local market to return to volumes previously seen before the coronavirus pandemic. In its latest report the credit ratings agency predicts that growth will be supported by rural demand, including affordable housing, and recovery in infrastructure segment, according to the Press Trust of India. Cement production capacity is forecast to increase by up to 22Mt compared to 17Mt in the previous year. Most of this additional capacity is expected to be in the eastern region. Capacity utilisation rates should recover to 64% from 56%.

Switzerland: CemSuisse, the Swiss cement association, says that cement deliveries fell by 1.5% year-on-year to 4.15Mt in 2020. Deliveries remained stable in the first quarter before falling by 3.3% year-on-year in the second quarter at the same time of the first wave of the coronavirus pandemic. They subsequently recovered to a small increase in the third quarter before falling by 3.1% year-on-year in the fourth.