Displaying items by tag: trade

Demand for heavy building materials in the UK dropped in the first quarter of 2025, with ready-mix concrete sales reaching a new 60-year low.¹ In an update last week, the UK’s Mineral Products Association (MPA) attributed the decline to existing economic headwinds, compounded by global trade disruptions, reduced investor confidence and renewed inflationary pressures.

Major infrastructure projects – including the HS2 high-speed railway in the English Midlands, the Hinkley Point C nuclear power plant in Somerset and the Sizewell C nuclear power plant in Suffolk – failed to offset delays and cancellations by cash-strapped local councils to roadwork projects. Residential construction, meanwhile, is ‘slowly but steadily’ recovering from historical lows, amid continuing high mortgage rates since late 2024.

The most interesting part of the MPA’s market appraisal was its warning of ‘new risks emerging in the global economy.’ These concern the new tariffs raised by the US against its import partners. The possible consequences, the MPA says, imperil the UK’s supply chains, construction sector and growth.

Of particular immediacy is the threat of imports into the UK from countries that previously focussed on the US market. The MPA said that the industry ‘cannot compete’ against increased low-cost, CO₂-intensive imports. It named Türkiye, which sends around 6.9Mt/yr of cement and clinker to the US, as a key threat. Türkiye became subject to the blanket 10% ‘baseline’ tariff on 2 April 2025.

The MPA probably didn’t have a particular company in mind when it said this. However, it bears noting that Turkish interests gained a share of UK cement capacity in October 2024, when Çimsa acquired 95% of Northern Ireland-based Mannok. Besides the Derrylin cement plant (situated on the border between Fermanagh, UK, and Cavan, Ireland), Mannok operates the Rochester cement storage and distribution facility in Kent, 50km from London. The facility currently supplies cement from Derrylin to Southern England and the Midlands. It could easily serve as a base of operations for processing and distributing imported cement and clinker from further afield.

Meanwhile in South West England, Portugal-based Cimpor is building a €20 – 25m cement import terminal in the Port of Bristol. The company is subject to 20% tariffs on shipments to the US from its home country. Its parent company, Taiwan Cement Corporation, is subject to 32% US tariffs from Taiwan.

But the plot thickens… On 8 May 2025, the UK became the first country to conclude a trade agreement with the US after the erection of the new tariff regime, under which the US$73bn/yr-worth of British goods sold in the US became subject to a 10% tariff.² The latest agreement brought partial relief for an allied sector of UK cement: steel. 180,000t flowed into the US from the UK in 2024.³ In 2024, the UK exported 7120t of cement and clinker to the US, up by a factor of 10 decade-on-decade from just 714t in 2014, all of it into two US customs districts, Philadelphia and New York City.⁴

In what may be one of the first true ‘Brexit benefits,’ UK cement exporters now ‘enjoy’ a US tariff rate half that of their EU competitors, notably those in Greece. Like the UK’s more modest volumes, Greece’s 1.82Mt/yr-worth of cement and clinker exports stateside also enter via the US’ eastern seaports, at New York City, Tampa and Norfolk. Given the overlaps in ownership between the Greek and UK cement sectors, it is conceivable that optimisation of cement export flows across Europe may already be under discussion.

On 6 May 2025, the UK and Indian governments announced a trade deal that will lift customs duties on almost all current Indian exports to the UK. UK MPs are still seeking clarifications as to whether this will include industrial products that might be dumped.⁵ Theoretically, the threat from an oversupplied and fast-growing cement industry like India’s could be existential to the UK cement industry.

As the UK invests heavily in its future, including with the HyNet Consortium, imports pose a major threat. Given enough time, the UK could develop a leading position in the decarbonisation space. Will it have enough time? Existential threats certainly add a sense of jeopardy.

References
1. Mineral Products Association, ‘Weak start to 2025 for building materials sales amid growing economic headwinds,’ 6 May 2025, www.mineralproducts.org/News/2025/release16.aspx

2. HM Government, ‘UK overseas trade in goods statistics November 2024,’ 16 January 2025, www.gov.uk/government/statistics/uk-overseas-trade-in-goods-statistics-november-2024/uk-overseas-trade-in-goods-statistics-november-2024-commentary

3. UK Steel, ‘US 25% tariffs on UK steel imports come into effect,’ 12 March 2025, www.uksteel.org/steel-news-2025/us-25-tariffs-on-uk-steel-imports-come-into-effect

4. United States Geological Survey, ‘Cement in December 2024,’ January 2025, https://d9-wret.s3.us-west-2.amazonaws.com/assets/palladium/production/s3fs-public/media/files/mis-202412-cemen.pdf

5. Welsh Liberal Democrats, ‘UK-Indian Trade Deal: Government Refuses to Answer Whether it Has Conceded on Cheap Indian Steel Imports,’ 6 May 2025, www.libdems.wales/news/article/uk-indian-trade-deal-government-refuses-to-answer-whether-it-has-conceded-on-cheap-indian-steel-imports

Tanzania: Cement production reached 10.9Mt in 2024 against domestic demand of 8.5Mt/yr, according to Industry and Trade Minister Seleman Jafo. The Guardian newspaper reports that the resulting surplus of 2.43Mt was exported to Rwanda, Malawi, Mozambique, Burundi, Uganda, the Democratic Republic of Congo and Zambia. Key exporters included Dangote Industries, Tanzania Portland Cement, Lake Cement, Mbeya Cement and Tanga Cement. The sector reportedly created 12,500 jobs, comprising 5220 direct and 17,280 indirect roles.

UK: John King Chains has been honoured with a prestigious King’s Award for Enterprise in International Trade - its first King’s Award, following a Queen’s Award in 2020.

The award was officially announced on Tuesday 6 May 2025, and John King Chains is delighted to be one of just 197 organisations nationally recognised this year for outstanding achievement.

Founded in 1926 and headquartered in Sherburn-in-Elmet, North Yorkshire, John King Chains has built a proud legacy of engineering excellence. Now a fifth-generation family-owned manufacturer, the company continues to experience strong international growth, supported by ongoing investment in its people and British manufacturing facilities.

Managing Director William Wadsworth commented:

"Receiving the King’s Award is a truly proud moment for everyone at John King Chains, and we are honoured to receive this prestigious accolade, particularly as the company approaches its 100-year anniversary next year of British manufacturing. It reflects the incredible effort our team puts in every day to deliver world-class products and services to our international customer base."

International markets have been a key driver of growth for John King Chains group, with the company continuing to achieve year-on-year expansion. Today, operations span four continents, enabling the business to better serve customers worldwide.

Continued investment in people, technology and UK manufacturing facilities has been fundamental to John King Chains' international success. As the company prepares to celebrate its centenary, winning the King’s Award marks a powerful milestone that highlights what can be achieved through hard work, innovation and dedication.

Now in its 59th year, the King’s Awards for Enterprise are the United Kingdom’s most prestigious business accolades and a globally recognised mark of excellence, making this achievement a proud moment in John King Chains' history and a testament to the commitment and passion of its entire team.

Bahrain: New rules have placed strict demands on local producers and importers. A regulation signed by Industry and Commerce Minister Abdulla bin Adel Fakhro requires all cement sold in Bahrain to meet BS EN 197-1 and GSO ASTM C150 standards and be circulated with a conformity certificate from the Bahrain Standards and Metrology Directorate. News of Bahrain has reported that there will be regular laboratory testing, specific storage and transport conditions, and penalties for non-compliance. The move reportedly marks a push to raise the standard of construction materials.

Pakistan: Lucky Cement has successfully completed Pakistan’s first ever clinker shipment to Brazil. Senior export manager Rafique Ahmed posted the news on social media, saying that the company had now ‘expanded [its] global footprint’ and strengthened Pakistan's presence in international markets.

Kyrgyzstan: The government has imposed a six-month ban on imports of certain construction materials, including Portland cement, alumina cement, fly ash cement and similar hydraulic cements. Prime Minister Adylbek Kasymaliev signed the decree on 31 March 2025. The resolution will enter into force 15 days after official publication.

Kyrgyzstan: Cement imports rose by 330% year-on-year to 38,000t in January 2025, according to the National Statistics Committee. Kazakhstan supplied 24,700t, Uzbekistan 13,100t and Iran 189t. Total cement imports in 2024 increased by 220% to 0.5Mt, while domestic production rose by 4.3% to 3.1Mt.

US: In response to the Trump Administration’s imposition of 25% tariffs on Canada and Mexico, Portland Cement Association (PCA) President and CEO Mike Ireland has released a statement.

He said “The US cement industry would like to work with the Administration to address federal laws and regulations that prevent American cement companies from increasing production, making it necessary for the US to import some 20% of its total cement consumption annually, including from Canada and Mexico.”

He added “US cement manufacturers, who provide the materials for America’s vast infrastructure and will have an essential role in helping to manifest the President’s vision of improved border and energy security, believe the right tax, regulatory and permitting environment will lead to more investments in US cement production.”

Canada and Mexico account for 27% of US cement imports, representing nearly 7% of total consumption. In 2023, the US imported 5Mt of cement from Canada and 2Mt from Mexico.

Vietnam: The general director of Vietnam Cement Industry Corporation (VICEM), Nguyen Thanh Tung, says that Vietnam will suffer continued cement overcapacity amid high production costs in 2025. Full-year production is forecast at 125Mt, 96% greater than an expected domestic demand of 63.5Mt. Việt Nam News has reported that Vietnam’s cement exports face an on-going investigation in Taiwan, and are already subject to anti-dumping duties in the Philippines.

VICEM aims to raise its domestic clinker sales volumes by 8% year-on-year to 18Mt, in order to generate sales of US$1.16bn. To this end, Tung urged the government to adopt cement reinforcement in roadbuilding, as well as lifting the export tax on cement.

Türkiye: According to the Turkish Ministry of Trade, Türkiye's global cement exports declined by 6.2% in 2024 to US$4.3bn, with exports in December 2024 amounting to US$341m, a 3% year-on-year decrease. Cement exports over the 12-month period from December 2023 to December 2024 also stood at US$4.3bn.

Cement exports from Türkiye to Kyrgyzstan also dropped in 2024, by 86% year-on-year, amounting to US$3.9m. However, December 2024 exports to Kyrgyzstan rose 7.2% year-on-year to US$751,065.