Displaying items by tag: trade

Philippines: The Tariff Commission (TC) has ordered that new duties be applied to imported Vietnamese cement for a five-year period up to 2027. The Department of Trade and Industry concluded a dumping investigation into Vietnamese cement exports to the Philippines in mid-October 2022, according to the Manila Bulletin newspaper. It found that imports of ordinary Portland cement (OPC) and blended cement from Vietnam were not injurious to the domestic cement sector at present. However, it also found the threat of material injury to be 'imminent.' This is due to Vietnam's 'substantial' cement overcapacity, which may enable it to rapidly increase its exports. The conclusion provided the basis for the TC's latest order.

Any new duty will replace provisional 2.7 - 32% duties introduced in December 2021. Previously, strong competition reportedly prevented the measures from causing price rises. Commentators now predict that the TC's proposed measures will result in a rise in prices.

Brazil: Cement producers sold 47.7Mt of cement in the first nine months of 2022, down by 3% year-on-year from the same period in 2021. The Brazilian National Cement Industry Association (SNIC) has forecast a 2% year-on-year decline in full-year cement sales to 63.7Mt in 2022. The association foresees global finance-related challenges and high energy and raw materials costs during the fourth quarter of 2022. Annual cement sales previously grew by 23% to 65Mt in 2021 from 53Mt in 2019.

SNIC president Paulo Camillo Penna said “Our expectation for 2022 was to maintain the gains of this three-year period, but, unfortunately, due to high interest rates, indebtedness and cost pressure, we were not able to.”

Pakistan: Pakistani cement companies sold 9.61Mt of cement during the first quarter of the 2022 financial year, down by 25% year-on-year from 12.8Mt in the first quarter of the 2021 financial year. Exports declined by 34% to 1.01Mt of cement, from 1.55Mt. The All Pakistan Cement Manufacturers Association (APCMA) said that current economic conditions impacted both domestic and export sales.

Separately, the APCMA has expressed its concern over State Bank of Pakistan limits on the use of letters of credit by companies for the purchase of spare parts and other machinery. The association says that present restrictive conditions will create operational difficulties for the industry.

China: China Resources Cement has issued a profit warning for the nine-month period ending on 30 September 2022. The producer said that it expects its profit to 'significantly' decline year-on-year on account of lower sales volumes and an increased cost of sales during the period, compared to the corresponding period in 2021.

Pakistan: Thatta Cement recorded net sales of US$19.1m during its 2022 financial year, up by 75% year-on-year from US$10.9m in its 2021 financial year. This included gross export sales of just US$3160, down by 99% from US$394,000 in the 2021 financial year. Thatta Cement's total cost of sales increased by 96% to US$18.1m from US$9.24m. Its raw material costs tripled to US$1.64m from US$546,000, while its fuel and power costs more than doubled to US$12.5m from US$5.89m. As a result, the producer recorded a profit for the year of US$387,000, down by 68% year-on-year from US$1.19m.

Chair Khawaja Muhammad Salman Younis said "The company showed better performance during the year, despite the tough market conditions, coupled with significant challenges and uncertainties due to political instability and the Russian-Ukraine war. Due to these factors, Pakistan’s economy remained under pressure throughout the year. Other economic factors such as the rise in energy prices in local and international markets, significant currency depreciation and a sudden hike in interest rates severely affected the industry's, as well as the company’s, performance." Noting the 'changing and challenging economic environment,' Younis said that Thatta Cement 'remained successful in achieving budgetary targets in terms of volumes and retention price.' He added "Our sales and marketing team put extra efforts into identifying the needs of our valued customers and explored new markets for the company, despite severe competition in the cement industry."

US: The US Department of Commerce has concluded a review of anti-dumping duties of imports of grey cement and clinker from Japan. The review established that the duties are necessary to the prevention of cement and clinker dumping. The department launched its review in June 2022, in line with legal requirements. Japanese cement and clinker have been subject to anti-dumping duties in the US since 1991.

Russia: The Ministry of Industry and Trade of the Russian government says that building materials are in high supply, but projected possible future shortages, beginning in 2024. The ministry named white cement as one product which it has adequately secured through new import sources. Russian construction remains dependent on imports, and the government says that it will look to further develop domestic production capacities of non-metallic materials from 2024.

South Africa: PPC says that the consumption of cement in South Africa will ‘remain subdued’ without new ‘significant’ infrastructure investments. The producer forecast demand growth of 2.5% year-on-year in 2022. It concluded that growth will likely not suffice to offset its cost inflation.

The company said “PPC will continue its efforts to counter input price inflation through price adjustments, operational efficiencies and improved industrial performance.”

Vietnam: Cement producers and exporters will pay an additional 5 – 10% tariff on their exports of cement and clinker from 1 January 2023. Viet Nam News has reported that the move aims to bring down local cement prices by increasing supply in the country. These have risen over the past six months, while export prices have remained level.

The Vietnam National Cement Association (VNCA) says that its members are struggling to increase exports in a highly competitive export market. In the six months up to the end of August 2022, China, the Philippines, Bangladesh, Malaysia and Taiwan all reduced their imports of Vietnamese cement. The decline included a ‘substantial’ reduction of imports by China and the Philippines. Exporters faced logistical difficulties in shipping cement to the Philippines, while China’s consumption dropped due to new Covid-19 restrictions and low residential construction activity there.

The VNCA forecasts cement production of 108Mt in 2022, against a national demand of 65Mt. It projected that a series of infrastructure projects will bolster domestic consumption between 2022 and 2025.

Sri Lanka: Insee Cement has broken ground on its construction of a 45,000m³-capacity storage facility at Hambantota International Port. When commissioned in early 2023, the facility will store ground granulated blast furnace slag (GGBFS) for use in Insee Cement's cement production. Daily News has reported the cost of the facility's construction as US$3m. At 17,300m², the Hambantota storage facility will be the largest warehouse at any port in Sri Lanka.

Insee Cement chair and CEO Nandana Ekanayake said "Hambantota Port is a vital link in our raw materials supply chain. Insee Cement has been using this port since 2018 and so far we have cleared around 1.7Mt of bulk cargo through the port, of which we did a little over 1Mt in 2021. Today, we laid this foundation as another step to strengthen our partnership with Hambantota International Port Group." Ekanayake concluded "We see great potential in developing channels through Hambantota International Port and we will double our investment in the future."