Pakistan: The local cement industry has asked the government to increase the custom duty on imported clinker to support local production as export rates continue to decline. The industry has also recommended that cement importers should be registered with the Pakistan Standards and Quality Control Authority (PSQCA) and country of origin bodies, according to the Nation newspaper. Falling exports in Afghanistan have been blamed on Iranian competition and high local energy costs.

UK: CO₂ emissions from cement production fell by 2% year-on-year to 696kg/t in 2016 from 709kg/t in 2015. Data from the Mineral Products Association (MPA) Sustainable Development (SD) Summary Data for 2017 report shows that local cement sales rose by 3% to 10.5Mt from 10.2Mt at the same time. Alongside this waste and by-products recovered as raw materials and fuels by the cement industry fell by 6% to 1.5Mt from 1.6Mt.

“The MPA supports the industry's continuing commitment to measuring and reporting data and to transparency on performance. The reporting process is now evolving to reflect the 7 strategic priorities set out in the MPA Charter and as part of this process we will be working to further improve the quality and coverage of our sustainability data,” said Nigel Jackson, the chief executive of the MPA.

US: The Portland Cement Association (PCA) has backed President Donald Trump’s call for US$1.5tn to be invested in infrastructure. It has urged the US Congress to take ‘swift’ legislative action to fund and sustain such projects.

“America’s cement producers are proud to play a critical role in what the president so aptly described as our nation of builders,” said PCA President and chief executive officer (CEO) Michael Ireland. “Today, our industry is ready to help America both rebuild long-neglected infrastructure, and construct new-and-improved transportation networks capable of serving the nation long into the future.” He added that the cement industry also supported the need to address significant federal funding gaps including a shortfall in the Highway Trust Fund.

Saudi Arabia: Finland’s Wärtsilä has provided an update on a three-year asset management deal for Northern Region Cement’s (NRC) power plant at its Turaif plant signed in October 2017. Wärtsilä will continue to be responsible for the operation and maintenance of the power plant and to ensure the reliability and availability of its operations. This agreement is an extension of Wärtsilä’s previous service agreements for NRC’s power plant. The first service agreement with NRC was signed in 2008.

“We are proud to be able to continue our 10-year cooperation with NRC. By having full responsibility for the operation and maintenance of NRC’s power plant, we have been able to ensure reliable operations, optimised fuel consumption and reduced maintenance costs for NRC,” said Haidar al Hertani, managing director, Wärtsilä Saudi Arabia.

The agreement covers all aspects of operating and maintaining NRC’s power plant, including the day-to-day operation of the power plant as well as preventive and predictive maintenance. Wärtsilä’s Customer Centre in Dubai remotely monitors the power plant’s condition. Wärtsilä has also carried out electrical and automation services to improve the performance and extend the lifespan of NRC’s power plant.

The 62MW power plant is equipped with nine Wärtsilä 32 engines and provides energy for NRC’s Turaif cement plant. The cement plant has two production lines, producing nearly 10,000t/day of cement.

Iran: Cement production fell by 4.8% year-on-year to 37.7Mt in the eight-month period to 21 November 2017. The decline has been blamed on a recession in the construction industry, poor natural gas supplies and falling export rates, according to the Trend News Agency. The country produced 54.1Mt of cement in its last financial year. Cement production capacity has risen significantly locally from 29.5Mt/yr in 2001 to 83Mt/yr in 2017. The number of cement plants has grown from 30 to 72.

Pakistan: Mega Conglomerate says it plans to buy an 87.5% stake in Dewan Cement. The buyer operates in the dairy and real estate sectors. Dewan Cement operates two cement plants. Bestway Cement and Fecto Cement have previously made bids for Dewan Cement.

Mozambique: The African Elephant cement grinding plant is operating at a third of its production capacity due to low demand. The Chinese-owned plant near Pemba, Cabo Delgado in the north of the country is producing around 300t/day despite the plant’s production capacity of 1000t/day, according to sources quoted by the Mozambique News Agency. The plant’s manager expects demand to pickup once investment in the gas industry increase. The company has suffered from imports from Tanzania.

Colombia: Cement production fell by 1.5% year-on-year to 12.3Mt in 2017 from 12.5Mt in 2016. Sales fell by 1% to 12Mt from 12.1Mt, according to data from the National Administrative Department of Statistics (DANE). Sales in Antioquia, Caldas and Nariño rose by 5.7%, 16% and 17.1%, respectively. However, sales in Casanare, Cordoba and Santander dropped by 29.5%, 15.9% and 7.4%, respectively.

US: United States Lime & Minerals grew its sales revenue in 2017 due to higher business from its oil and gas services and industrial customers. Total revenue grew by 4% year-on-year to US$145m in 2017 from US$139m in 2016. The producer raised the price of its lime and limestone products in 2017.

“Demand for our lime and limestone products in the fourth quarter and full year 2017 remained steady. In addition to the St Clair replacement kiln project, we continue to seek innovative ways to enhance efficiencies at all of our facilities so we can compete in what remains a challenging pricing environment,” said Timothy W Byrne, president and chief executive officer of United States Lime & Minerals.

As readers in colder climes will understand: nobody likes a gas bill. Save some pity for LafargeHolcim Bangladesh then this week, as it faces attempts to hike the price it’s paying.

As reported by local press the government-run Jalalabad Gas Transmission and Distribution Systems (JGTDS) is trying to raise the rate for natural gas to the cement producer. Allegedly, LafargeHolcim Bangladesh is paying a lower unit cost for gas supplied to a power plant at its Chhatak cement plant than the fixed amount set by the country’s energy regulator. LafargeHolcim Bangladesh says the rate was set in a gas sales agreement (GSA) signed between JGTDS and its predecessor, Lafarge Surma Cement, in January 2003. The state body meanwhile has referred the issue up the chain of command to the Energy and Mineral Resources Division under the Ministry of Power, Energy and Mineral Resources.

JGTDS says that the plant is consuming around 450,000m3/day of gas. Of this, about a quarter is used to run the power plant and the remainder is used to power the cement plant’s kiln. The plot thickens though as LafargeHolcim Bangladesh is actually paying above the industry tariff for gas of US$0.09/m3. Commentators reckon the price of gas is set to rise in the future. Naturally the cement producer wants to stick to the pre-agreed price for the economic viability of the country’s main integrated cement plant. The Spanish embassy, representing Cementos Molins one of the owners of the company along with LafargeHolcim, has even gone as far as intervening in the argument.

The pressure is on LafargeHolcim Bangladesh because its sales revenue fell slightly year-on-year in 2016 but its fuel costs rose by 12%. As the country’s sole clinker producer it suffered from falling international clinker prices in a nation full of grinding plants. So far in the first nine months of 2017 its sales revenues have risen a little yet its profit has more than halved. Any change to its fuel costs would seem likely to damage the company at a delicate moment.

Energy costs for cement plants are nothing trivial as the graph above shows. It uses data from the German cement industry but the key takeaways are that the calorific ratios of the different types of energy cement production uses don’t directly correlate to the cost. Hence, in Bangladesh and other countries where the electricity grid might be unreliable or expensives, running one’s own captive power plant makes sense both for cost and supply reasons. As an aside that may not be applicable to Bangladesh right now, the stark disparity between the energy produced by alternative fuels and their cost proportion is a great reason to use them if the necessary supply chains can be organised. LafargeHolcim launched local operations for its waste management wing Geocycle in December 2017 so this point has not been lost the company.

The situation in Bangladesh is reminiscent of the bind Dangote Cement found itself in towards the end of 2016 in Tanzania. A dispute over gas prices for its Mtwara plant led to company boss Aliko Dangote negotiating personally with President John Magufuli to protect his investment. Governments want inward spending in the form of new industrial plants and multinationals want assurances on some of their costs, like fuel supplies, before they reach for the chequebook. However, if one side is seen to be getting too good a deal then the relationship can break down. LafargeHolcim Bangladesh may have bagged itself a scandalously low gas deal and the Bangladesh government may also be breaking an agreement. Bear in mind though, that with sales of nearly US$28bn in 2016, LafargeHolcim took in revenue nearly one tenth of Bangladesh’s gross domestic product. If the two parties don’t reach an accord, the consequences for both parties could be negative.