Displaying items by tag: volumes
‘Cheap’ imports threaten South African cement industry
26 March 2024South Africa: The South African cement industry faces plant closures and job losses due to an influx of ‘cheap’ cement imports, according to a recent study. Chronux Research found that cement imports to South Africa rose by nearly 20% in 2023, despite logistical challenges at ports. The firm's cement import monitor shows imported cement volumes increased by 18% in 2023 to 979,000t, with a notable 43% year-on-year growth in the second half of the year.
"Cement imports continue to be able to navigate the port and supply chain issues in South Africa with minimal impact," reads the report, highlighting the government's lack of protective measures for local cement producers. Vietnam, Mozambique, Namibia, Saudi Arabia and the UAE were the primary sources of these imports.
Chronux Research director Rowan Goeller expressed confusion over how imports are bypassing the country’s congested ports. The local industry has been lobbying for tariff protection against imported cement. The capacity of South Africa's cement production stands at 20Mt/yr, but only 12Mt/yr is currently produced.
A report by PPC Cement and the Gordon Institute of Business Science revealed in September 2023 that South Africa’s cement industry is operating at two-thirds of its capacity, citing displacement by imports and low demand as major factors. This underutilisation could lead to job losses and government revenue collections, according to the report.
Economic adviser for the Optimum group, Roelof Botha, raised concerns about the quality standards of imported products and their impact on local employment. He said "The extent to which the imported product displaces the locally manufactured products will ultimately also replace domestic employment," highlighting the government's slow response and the potential risks associated with poor-quality imports in construction.
France: Hoffmann Green Cement Technologies recorded a turnover of Euro6m in 2023, more than double the figure for 2022. The company sold 21,378t of its clinker-free alternative cement, up by 78% year-on-year, but under its target of 24,000t. It strengthened its order book by 8% to 260,000t.
The company confirmed its existing financial objectives, namely: to achieve positive earnings before interest, taxation, depreciation and amortisation (EBITDA) in 2024; an operating profit in 2025; and a turnover of Euro130m by 2026.
Uruguayan cement production drops in 2023
15 February 2024Uruguay: Uruguay produced 27% less cement in 2023 than in 2022. Prensa Latina News has reported that state-owned Ancap, which operates two of the country’s four cement plants, reported a year-on-year drop in production of 29%, to 21,700t, in December 2023. The company’s least productive month in terms of volumes was June 2023, when it recorded 8570t.
Cemex reports sales growth in 2023
09 February 2024Mexico: Cemex reported sales of US$17.4bn in 2023, up by 8% year-on-year from 2022 levels. Meanwhile, the group’s operating earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 20% to US$3.35bn. The producer said that strong product pricing in all markets and slowing costs inflation compounded the positive effects of its growth investment strategy. On a consolidated basis, Cemex’s cement sales volumes fell by 6% to 51.7Mt from 55.1Mt. They rose by 3% in Mexico but fell by 10% in Europe, Middle East, Africa and Asia, by 3% in South and Central America and the Caribbean and by 13% in the US.
Chief executive officer Fernando González said "I am pleased to announce that 2023 is a great year for our company where we delivered not only great results and recovered from the extraordinary inflationary pressures of the last few years, but also continued executing against our ambitious decarbonisation commitments, reducing our CO2 emissions by 4% year-on-year and by 13% since 2020. Despite the significant macro challenges of the last four years, we have proven not only the resilience of our business model but also our ability to pivot and adjust rapidly to changing global conditions. This foundation gives us additional flexibility in capital allocation, where we continue to accelerate investments in our bolt-on growth strategy, initiate a sustainable return programme for shareholders and bolster our capital structure."
India: Ramco Cements reported 5% growth in sales in the third quarter of the 2024 financial year (1 October – 31 December 2023), to US$254m. Rising cement volumes – up by 9.9% to 4Mt – helped to drive the growth in sales. Despite weather-related disruptions, Ramco Cements raised its earnings before interest, depreciation, taxation, and amortisation (EBITDA) rose by 37% to US$48.4m. A 28% reduction in fuel prices to US$138/t of cement spurred earnings growth. Cement capacity utilisation during the quarter fell quarter-on-quarter to 74% to 82% previously.
Tokuyama Corporation’s cement business grows sales in first nine months of 2024 financial year
01 February 2024Japan: Tokuyama Corporation reported sales of US$1.7bn in the first nine months of the 2024 financial year. This represents a 3.3% year-on-year drop from nine-month levels in the previous financial year. The company sold 2.42Mt of cement, and exported 460,000t (19%) of this to foreign markets. Tokuyama Corporation now expects to sell 3.2Mt of cement and export 600,000t in the full 2024 financial year. As a result, the company’s cement business contributed US$345m in sales in the first nine months of the financial year, up by 16% year-on-year.
US: US cement plants produced 91Mt of cement in 2023, according to data from the United States Geological Survey (USGS). This corresponds to a year-on-year decline of 2.2% from 93Mt in 2022. The figure places the US in fourth globally in cement production volumes, behind China with 2.1Bnt (in line with 2022 levels), India with 410Mt (up by 7.9% year-on-year) and Vietnam with 110Mt (down by 8.3%).
US: Eagle Materials recorded sales of US$1.78bn in the first nine months of the 2024 financial year. This corresponds to a rise of 6.2% year-on-year from the corresponding period of the 2023 financial year. The producer’s heavy materials sales rose by 18% to US$889m, and its cement sales volumes rose by 2% to 6Mt. As a result, Eagle Materials raised its net earnings by 11% to US$401m.
Steppe Cement experiences declining sales in 2023
15 January 2024Kazakhstan: Steppe Cement reported US$82.5m in sales in 2023, down by 7.2% year-on-year from US$89m in 2022. The company attributed this to a decline in sales, to 1.6Mt in 2023. It said that it commanded a 14% local market share for the year.
Vicem’s cement and clinker volumes drop by 18% in 2023
10 January 2024Vietnam: State-owned Vicem sold 22.6Mt of cement and clinker in 2023, down by 18% year-on-year from 2022 levels. Việt Nam News has reported that the producer exported 2.85Mt of cement and clinker, 85% of its target volumes for the year. For 2024, Vicem aims to achieve full-year sales of 24.3Mt, up by 7.7%.