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Mineral Products Association warns of slow UK demand growth for construction products

17 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.”

Published in Global Cement News
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Dangote Cement granted mineral exploration permits in Togo

30 October 2020

Togo: The government has granted two mineral exploration permits to Dangote Cement to assess carbonate phosphate reserves in Kpomé Apéyémé, Zio prefecture and Akoumapé, Vo prefecture. The licences are valid for three years with options for renewal, according to the Liberté newspaper and Agence Ecofin. If suitable deposits are found then they could support plans by the cement producer to build a plant in the country. Dangote Cement received government clearance to build a 1.5Mt/yr grinding plant for US$60m in late 2019.

Published in Global Cement News
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Jiangxi Wannianqing’s profit rises by 20% year-on-year in 2019

26 March 2020

China: Jiangxi Wannianqing Cement’s net profit in 2019 was US$197m, representing a 20% year-on-year increase from US$164m. Reuters has reported that on 15 November 2019 Jiangxi Wannianqing Cement paid US$82.6m for a lease and limestone exploration rights for land in De’an County, Jiangxi Province, previously held by Fushan Cement. On 25 June 2019 the company received US$23.3m in government compensation for the relocation of its Wannian cement plant.

Published in Global Cement News
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Toshali Cements acquires land with historic religious landmark

28 February 2020

India: The state government of Odisha has leased an area of limestone-rich land that includes the Asura Vihara Gumphas, a first century BC cult centre for the Jain religion that remains steeped in local mythology to the present day. The Blink newspaper reported that the site, consisting of three caves, is ‘covered by thick vegetation’ and in need of ‘proper conservation and preservation.’ Indian National Trust for Art and Cultural Heritage (INTACH) Odisha state curator Anil Tripathy said, ‘the caves should be retrieved from the company and the allotment of the site cancelled.’ Toshali Cements is reportedly carrying out limestone surveys on an area, including the caves.

INTACH is in the process of conducting a comprehensive survey of the Mahandi Valley, in which the land lies, and has identified over 1000 monuments of ‘tangible heritage.’

Published in Global Cement News
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Siam Cement Group surveys Laos for cement plant

26 November 2014

Laos: Siam Cement Group (SCG) is carrying out a survey of available raw materials and possible locations with a view to setting up one of the largest cement factories in Laos. Vanthong Sitthikoun, president of the Lao Cement Producers' Association, said that the Laotian government had authorised SCG to conduct a survey in Boualapha district, Khammuan province, where the company proposes construction of the plant.

"There are now two surveys under way in Khammuan province for the construction of cement factories, by Thai and Chinese investors. When they have finished, they will submit their findings to the government before building the factories," said Vanthong.

SCG intends to build a plant in Laos to tap its growing demand for cement especially for dam construction. Laos currently has 10 operational cement factories, with a total production capacity of about 3.84Mt/yr according to local media. Two of the factories are in Vientiane, three are in Vientiane province, and there is one in each of the provinces of Luang Prabang, Xieng Khuang, Khammuan, Savannakhet and Saravan.

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