Displaying items by tag: trade

Kyrgyzstan: Cement producers exported 574,500t of cement during the first 10 months of 2022, down by 4.7% year-on-year from 10-month 2021 levels. Central Asia News has reported that cement prices fell by 13% to US$42/t. In value, exports fell by 17% to US$24.2m. Neighbouring Uzbekistan was the major recipient of Kyrgyz cement exports.

Argentina: Portland Cement Manufacturers Association (AFCP) members sold of cement sold 13Mt of cement in 2022, up by 7% year-on-year. Local press reported that sales volumes were at their highest since 2012. Exports dropped by 24% year-on-year to 83,300t, from 115,000t.

Pakistan: All Pakistan Cement Manufacturers Association (APCMA) members despatched 21.8Mt of cement during the six-month period up to 31 December 2022, the first half of Pakistan’s 2023 financial year. The figure corresponds to a decline of 21% year-on-year from 27.5Mt during the first half of the 2022 financial year. Producers exported 1.73Mt of cement, down by 49% from 3.39Mt in the first half of the 2022 financial year.

The drop in sales was most pronounced in Southern Pakistan, where producers despatched 4.66Mt of cement, down by 31% year-on-year from 6.75Mt. Meanwhile, Northern Pakistani producers despatched 17.1Mt of cement, down by 17% from 20.7Mt.

An APCMA spokesperson said “The current economic turmoil has badly impacted on cement consumption. Inflation has played havoc with the pockets of consumers. New construction projects, including housing, are few in number, while routine maintenance of residential buildings has been postponed for better times.” They added “The Russia-Ukraine war has badly impacted cement exports too.”

Vietnam: Vietnam National Coal and Mineral Industries Group (Vinacomin) has forecast 6.1% three-year growth in national coal demand to 115Mt in 2025 from 108Mt in 2022. Four main industries – cement, fertilisers, metal and power generation – are expected to retain over 90% of the combined share of domestic consumption. Vinacomin expects national coal production to increase by 1.3Mt/yr over the period, retaining a 40 – 45% stake in the domestic market. Five-year consumption of imported lignite is forecast to rise to 70 – 75Mt throughout the period up to 2026.

Chile: A fire at Sites 1, 2, 3 and 5 of Puerto Ventanas port in Valparaíso Region has disrupted clinker transportation to Melón’s Puerto Ventanas cement plant. The La Tercera newspaper has reported that the fire destroyed a clinker conveying system connecting the port to the cement plant. The producer expects the damage to ‘significantly impact’ its cement production capacity for a period which it is ‘not yet possible to specify.’

Melón said, “We have deployed contingency and operational continuity plans in order to ensure our supply to our customers." It added that it could not yet quantify the ultimate impacts on its assets, liabilities or results.

Europe: Cembureau has welcomed a satisfactory conclusion to talks over the new Carbon Border Adjustment Mechanism (CBAM) under the European Union (EU) Emissions Trading Scheme (ETS). Negotiators from different EU institutions agreed to a gradual CBAM implementation, which will officially commence in October 2023. Free allocations of ETS credits to the EU cement sector and other industries will phase out between 2026 and 2034. During this transition period, CBAM duties will apply to imported products in proportion to EU production not covered by free allocation.

Cembureau's chief executive Koen Coppenholle said “The agreements on CBAM and ETS are essential to create a global level playing field on CO₂ and support our sector in its transition to carbon neutrality. It is positive that the EU institutions strengthened some key aspects of CBAM. We however regret that the adopted texts do not provide a structural solution for exports. Some EU countries export up to 50% of their domestic cement production and these will be at risk should no concrete export solution be found before 2026.”

Coppenholle added “Looking ahead, we need to focus on CBAM implementation and its water-tightness, to ensure the mechanism fully equalises CO₂ costs between EU and non-EU suppliers. It is also essential that policymakers support EU industries like cement, which are confronted with unsustainably high energy costs at a time some of our trading partners are launching massive subsidy programmes. CBAM, ETS and a strong innovation fund are essential parts of the puzzle, but we look forward to European Commission proposals for a truly ambitious industrial policy, as requested by the European Council in its meeting of 15 December 2022.”

Europe: The European Parliament (EP) of member states and the Council of the EU have concluded a provisional deal over plans for an EU carbon border adjustment mechanism (CBAM). Under the plans, importers of a range of emissions-intensive goods, including cement, will have to pay to obtain CBAM certificates for products entering the EU. Goods produced in countries with the same CO₂ emissions reduction measures as the EU will be exempt from requiring a certificate. CNBC News has reported that the mechanism will enter force with a transition period beginning in October 2023. This is subject to ratification by the EP and member states independently.

EP member for the Netherlands Mohammed Chahim said “CBAM will be a crucial pillar of European climate policies. It is one of the only mechanisms we have to incentivise our trading partners to decarbonise their manufacturing industry.”

Nigeria: The Daily Independent newspaper has reported that BUA Cement is allegedly preparing a 'multi-million dollar lawsuit' against its gas supplier, Greenville Liquefied Natural Gas (Greenville LNG). The supplier reportedly raised prices, as stipulated in the parties' gas supply contract, following an increase in its costs. Greenville LNG attributed the increase to the dilapidation of roads and collapse of upstream gas infrastructure due to flooding, as well as a lack of access to imports. It said that none of its 44 other industrial customers has challenged the price change.

Greenville LNG chair Eddy Van Den Broeke said "It is not a breach of contract because not only are we continuing the gas supply to the BUA cement plant in Sokoto, but also because we are discussing in good faith the changed business and economic conditions that afflict both companies." He concluded “In this case, we only activated the contractual price adjustment clause. We cannot explain how it is possible that social media misrepresented so grossly the present circumstances and the conditions of our contract, which were not reflected at all."

Cuba/Guyana: Guyanese government officials attended a meeting with representatives of Cuba-based Cementos Cienfuegos on 25 November 2022. The Guyana Chronicle newspaper has reported that the Cuban government advised the Guyanese officials of the feasibility of importing Cuban building materials, including cement, into Guyana.

Philippines: Vietnam Cement Industry Corporation (Vicem) has awarded a three-year, 6Mt cement and clinker import contract to Fenix (CEZA) International and Gold Falcon Trading Corp. The agreement will have effect from 2023 until 2025. ‎Việt Nam News has reported that Vietnam's Minister of Construction, Nguyen Thanh Nghi, and National Assembly chair, Vuong Dinh Hue, attended the contract's signing in Manila.

Declining demand, primarily from China, has diminished Vietnam's cement exports over past months. Vietnam produced 130Mt of cement in 2021, but consumed just 65Mt.