Global Cement Newsletter

Issue: GCW704 / 09 April 2025

Headlines


President Trump said he was going to do it… and he did. The US announced tariffs on most imports on 2 April 2025 that took effect from 5 April 2025. So, once again, we ask what the consequences of this might be upon the cement sector.

Country Volume (Mt) Value (US$m) Tariff Added cost (US$m)
Türkiye 7.16 595.88 10% 59.59
Canada 4.85 577.02 25% 144.26
Vietnam 4.17 336.70 46% 154.88
Mexico 1.32 190.43 25% 47.61
Greece 1.82 139.81 20% 27.96
Algeria 0.96 86.36 30% 25.91
Colombia 0.86 81.11 10% 8.11
UAE 0.90 80.29 10% 8.03
Egypt 0.71 75.64 10% 7.56
Spain 0.59 47.56 20% 9.51

Table 1: Estimated burden of US tariffs on selected countries importing cement based on 2024 data. Source: Based on USGS data.

Global Cement Magazine Editorial Director Robert McCaffrey posted a similar table to the one above on LinkedIn on 4 April 2025. It applies the new import tariffs to the value of imported hydraulic cement and clinker to the US in 2024 as reported by the United States Geological Survey (USGS). As such it gives us a starting idea of how the new tariffs might change what happens in 2025. For an idea of the volumes of cement imported to the US in recent years refer to the graph in GCW695.

However, a couple of key caveats were pointed out by commentators to that LinkedIn post. Marty Ozinga noted that the values from the USGS are customs values. Crucially, he said that the tariffs will be charged upon the FOB value of cement at the point of origin and not on the transport costs. This is significant because the cost of moving the cement can sometimes be more than half the total values reported in the table for certain countries. Another commentator wanted to make it clear that tariffs on imports are imposed upon the supply chain and are paid somewhere along it, typically by end users, rather than the originating country. Elsewhere, the feeling was very much one of waiting to see what would happen next and how markets would reorder.

Taken at face value, the first takeaway from Table 1 is that the variable tariffs disrupt the competitiveness of the importers. Any importer from a country with the lowest rate, 10%, now has an advantage over those with higher ones. Türkiye seems to be the obvious winner here as it was both the largest importer of cement in 2024 and it has the lowest rate. Vietnam appears to be a loser with a massive 46% rate. Canada and Mexico may have problems with a 25% tariff but how their cement gets to the US market may make a big difference as Ozinga mentions above. And so it goes down the list. What may be significant is how the order of the importers further down the list changes. For example, Algeria has a 30% rate compared to Egypt’s 10%. Both nations exported a similar volume of cement to the US in 2024.

The first casualty of the last week has been market certainty. The US announced the tariffs and stock markets slumped around the world. They started to revive on 8 April 2025 as the US government made more reassuring noises about trade talks but this was dampened by renewed fears of a US - China trade war. The orthodox economic view is that the US tariffs are increasingly likely to cause a recession in the US in the short term regardless of whether they have a more positive effect on the longer one. This view can be detected in former PCA economist Ed Sullivan’s latest independent report on the US economy. He acknowledged the fairness argument the US government has made, but warned of stagflation.

On the US construction market, prices look set to rise in areas that previously relied on imports or are near to them. Cement companies in the US should be able to sell higher volumes as some level of domestic production outcompetes imports. The sector produced 86Mt in 2024 and has a capacity of 120Mt/yr giving it a utilisation rate of 72%. It imported 20 - 25Mt of cement in 2024. One sign of this happening might be renewed investment in local capacity through upgrades, new lines and even new plants. However, a recession would reduce overall consumption. On the equipment side, there is likely to be a similar readjustment between local and foreign suppliers. Certainly, if the tariffs stick around then more non-US companies may be tempted to set up local subsidiaries and /or manufacturing bases if conditions permit. For example, note JCB’s doubling in size this week of a plant it is building in Texas. One interesting situation might occur if a US cement company wants to build a new production line. All the likely suppliers, at present at least, appear to be based outside of the US.

Finally, despite everything, Holcim declared this week that it had completed a $3.4bn bond offering ahead of the impending spin-off of Amrize in the US noting “strong investor interest in the future company.” It wants to shore-up confidence ahead of the creation of the new company at some point in the first half of the year. Holcim’s CEO said previously that he didn’t expect any blowback from tariffs as the company was a local business in the US. What may be worth watching for is whether the current disruption to stock markets causes any delays to the creation of Amrize.

The current situation with the tariffs is prompting a rapid-revaluation of the US construction market and the wider economy. US-based building materials companies look set to benefit but there may be disruption along the way. Foreign companies supplying the sector may well experience sharp changes in circumstances depending on how tariffs reorder supply chains. Prices for end-users look set to rise. We live in interesting times.

For Ed Sullivan’s take on the US cement sector read his article in the May 2025 issue of Global Cement Magazine


Türkiye: OYAK Çimento has appointed Turhan Erkayiram as the Plant Director of the Bolu cement plant.

Erkayiram previously worked as the plant manager of the İskenderun plant. Before this he held production manager roles with the company. Earlier in his career he worked for Vicat Group Türkiye, Limak Group and Aşkale Cement. He is a graduate in chemical engineering from Atatürk University.


UK: Heidelberg Materials UK has secured planning permission to build a carbon capture plant at its Padeswood cement works in north Wales. The facility will capture up to 800,000t/yr of CO₂ for storage via the HyNet North West pipeline under Liverpool Bay.

The project is expected to create around 50 new full-time jobs, and up to 500 additional jobs during construction. Once operational, the Padeswood facility will capture ‘almost all’ of the CO₂ produced at the cement works and enable the production of evoZero cement by 2029.


Spain: Holcim, IGNIS P2X and Exolum have launched Eco2fly, a project to convert industrial CO₂ emissions into sustainable aviation fuel at Holcim’s Villaluenga de la Sagra plant in Toledo. The facility will capture over 700,000t/yr of CO₂ from the plant’s cement production process and convert it into 100,000t/yr of sustainable aviation fuel using ‘green’ hydrogen. The remaining CO₂ will be stored in geological repositories. Over its first 10 years, the project will reportedly avoid more than 6.5Mt of CO₂ emissions.


Sweden: Cemvision and S:t Eriks have entered into a partnership agreement as a result of several pilot projects using Cemvision’s cement in S:t Eriks’ production. The partners have signed a letter of intent to develop and implement sustainable concrete solutions within water and sewage infrastructure. Having already tested Cemvision’s cement in its own production, S:t Eriks will then implement the cement in commercial projects. The product reportedly offers high resistance to sulphate and acid attacks, which contribute to longer service life.

In the coming months, Cemvision and S:t Eriks will continue testing to explore the potential for broader implementation of the cement in water and sewage systems.


Kenya: Cement sales fell by 8% year-on-year to 8.47Mt in 2024, the sharpest annual decline in over two decades, according to the Kenya National Bureau of Statistics (KNBS). The fall reflects budgetary cuts on public infrastructure projects and a broader slowdown in construction activity, which contracted by 3% in the third quarter of 2024, following a 2% drop in the second quarter.

KNBS said in its report “The contraction was reflected by trends in key industry indicators. For instance, cement consumption declined by 10% to 2.2Mt in the third quarter of 2024, from 2.4Mt in the same quarter of 2023.”

According to the Nation newspaper, the slowdown follows delays in the government’s payments to contractors and the stalling of infrastructure projects. The government indicated that most of the stalled projects will begin to receive funding in the next few days and weeks.


Vietnam: Cement production rose by 4% year-on-year to 36.9Mt in the first quarter of 2025, according to the General Statistics Office. In March 2025, output reached 14.4Mt, up by 1.5% year-on-year. In 2024, the country produced 184.2Mt, an increase of 3.5% year-on-year.


Kazakhstan: Steppe Cement sold 0.28Mt of cement and generated US$12.5m in the first quarter of 2025, up by 57% in volume and 71% in revenue year-on-year. Clinker production rose by 14%, positioning the company ‘favourably’ for the upcoming busier summer months.

Kazakhstan’s cement sales rose by 20% to 2.03Mt in the quarter, while exports fell by 5% and imports, particularly from Uzbekistan and Russia, rose to account for 9% of the market.

Steppe Cement maintained a conservative outlook for the rest of 2025, citing rising inflation and ‘global developments’ as potential challenges, but expects market demand to remain around 12Mt, similar to 2024.


India: The Mumbai bench of the National Company Law Tribunal has approved Nuvoco Vistas’ US$209m acquisition of Vadraj Cement. The deal will raise Nuvoco’s installed capacity by over 20% to around 31Mt/yr. It will be executed through wholly-owned subsidiary Vanya Corporation, which will be merged with Vadraj Cement as part of the deal.

Nuvoco Vistas will invest a further US$139m over 15 to 18 months to revive Vadraj Cement’s operations, which have reportedly been stalled for ‘nearly seven years’, and begin production by the end of 2026. Vadraj Cement’s assets include a 3.5Mt/yr clinker unit in Kutch and a 6Mt/yr grinding unit in Surat, Gujarat.


Argentina: Cement despatches in the first three months of 2025 reached 2.3Mt, up by 11% from the same period in 2024. In March 2025, despatches rose by 17% year-on-year and by 1% month-on-month from 0.63Mt and 0.73Mt respectively. The country exported 7791t of cement in March 2025, bringing the year-to-date total for exports to 24,971t. Argentina imported 61t in March 2025 and 618t so far in 2025.


Nepal: Hetauda Cement Industry resumed cement production on 7 April 2025 following a five-month suspension due to electricity shortages. According to general manager Nabin Kumar Karna, the plant requires 8MW/day of electricity to crush limestone.

The plant reportedly holds 1900t of coal in reserve and is acquiring a further 4000t through a bidding process. Though its capacity is 18,000 bags/day, current output is only 12,000 bags/day.


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.


Ukraine: Ukrainian cement and concrete producers are ready to expand capacity to meet reconstruction demand, according to a survey by Consumer and Business Research Ukraine (CBR), despite reduced funding and limited state budget. Cement production dropped to 5.4Mt in 2022 from 11Mt in 2021 but stabilised at 7.4Mt in 2023 and 7.97Mt in 2024. CBR estimates that 8Mt/yr is feasible during wartime, rising to 12Mt/yr in the third or fourth year of reconstruction.

The Ukrainian Cement Association (UkrCement) head Pavlo Kachur said “Reconstruction will begin with demining, reinforcing the front lines and restoring energy infrastructure. Large-scale construction will likely not begin until the third or fourth year.”

At present, plant capacity utilisation varies across regions. Plants in western Ukraine are operating at higher capacity, while those in the south and east remain underutilised. In 2022, plants operated at a loss but retained staff. In 2023, volumes were sufficient to break even. Two-thirds of surveyed consumers increased production in 2023, though 2024 expectations were cautious.

Kachur said “Time will be needed for training, planning and securing financing—and cement producers will use that time to fill the market, primarily by investing in modernisation and capacity expansion. For example, two major projects to build new kilns are already ready in Kryvy Rih and Ivano-Frankivsk.”

The study notes that building brand new plants is unlikely, but modernising existing kilns can be accomplished within a year. It expects at least two plants to launch new kilns, increasing capacity by 2Mt/yr. For example, Kryvyi Rih Cement has obtained a permit to develop the Maryanske limestone deposit (60km from the plant) and plans to build a clinker kiln at the site.

CBR researcher Tetiana Sytnyk said “Cement companies are ready to make rapid investments in modernisation and to launch additional kilns once recovery begins. They’re waiting for clear signals to proceed – such as the allocation of reconstruction funds or a surge in demand to at least 9.5Mt/yr.”

Ukraine exported 1.7Mt of cement in 2024, up from 56,000t in 2021, with Kachur adding that exports have ‘saved’ the local industry during the war. Developed countries will be capable of meeting Ukraine’s reconstruction needs, though this could hurt local producers. Kachur added “During the recovery phase, Ukraine’s market must be as localised as possible with domestic products. Only countries that supported us during the war should have access.”


Pakistan: Total cement despatches, including domestic sales and exports, fell by 9% year-on-year to 3.57Mt in March 2025, according to the All Pakistan Cement Manufacturers Association. Domestic sales dropped by 11% to 2.96Mt, while exports remained stable at 0.61Mt. North-based plants recorded an 85% year-on-year fall in exports to 0.019Mt from 0.12Mt. South-based plants increased exports by 23% to 0.59Mt from 0.48Mt a year earlier.

Between July 2024 and March 2025, total despatches declined by 1% year-on-year to 34Mt. Domestic sales dropped by 7% to 27.5Mt, while exports rose by 28% to 6.53Mt.


Türkiye: Medcem has completed testing of its new waste heat recovery (WHR) facility, which will recover 25% of the energy demand of the plant’s second rotary kiln line commissioned in 2024.

The 9.6MW facility uses an organic rankine cycle (ORC) system to generate electricity from a single heat source. The company says that this will lead to significant cost savings in energy expenses while also reducing CO₂ emissions.


Ghana: Cement dealers have raised concerns over a growing shortage of brands including SOL Cement, Empire Cement and Dzata Cement, according to Citi Newsroom. Dealers have cited a scarcity of clinker and rising port charges behind recent supply disruptions and price increases. One cement retailer, Augustine Aduful, said that they paid for cement but have been left out of pocket for two weeks. Ghacem, in particular, has reportedly been facing a shortage, with customers having to switch to alternatives like Diamond Cement.

Ghana Chamber of Construction Industry CEO Emmanuel Cherry said that Ghana cannot continue to rely solely on clinker in cement production and that the country should begin to look for viable alternatives.

Another retailer, Isaac Frimpong, said “The clinker shortage is being caused by overseas supply issues. Even the recent price hikes are tied to external factors. We hope that with government intervention, the situation will stabilise.”


Trinidad & Tobago: The government will reduce the rate of duty on other hydraulic cement from 10% to 0%, following the fifth price rise by Trinidad Cement since 2021, including the most recent 7% increase in early 2025.

The nation’s cabinet suspended its cement quota and registration system in February 2024. Cement remains on the import negative list, requiring a licence and compliance with Caricom standards. The legal order for the duty cut will be published in the coming days.


Saudi Arabia: Sinoma Overseas has marked the construction of the preheater tower as part of a relocation and upgrade of Yamama Cement’s production line. The previously 10,000t/day line now has a capacity of 12,500t/day. The placement of the final structural element on the preheater tower was attended by representatives from both companies.

Sinoma posted on social media that the company had “overcom[e] significant engineering and logistical challenges – from dismantling and moving massive equipment to integrating new technology.”

With the preheater tower now complete, the company looks ahead to the plant’s commissioning and final delivery.


China: Hebei Wushan Cement has completely dismantled a 1000t/day clinker line formerly used to support its 3000t/day clinker line. The line will not resume production.

The producer also dismantled the original rotary kiln of a 2000t/day line and upgraded it to a 3000t/day new dry-process clinker line using a rotary kiln (Φ = 4.3m, L =  60m).


Russia: Kavkazcement plans to spend US$224m on equipment modernisation after cement production costs rose by 30–34% in 2024, according to local news reports. The producer recorded a production increase of 11% year-on-year to 2Mt in 2024 and aims to grow output by a further 10% in 2025.

General director Sergey Bogomaz said “Cement from Kavkazcement is in demand in many regions of Russia. The main deliveries go to the Rostov Region, Volgograd Region and Krasnodar Krai. In our region, we see an increase in construction volumes. New infrastructure projects are emerging, such as the construction of the first airport in Karachay-Cherkessia.”


Pakistan: Cherat Cement has commissioned a 6MW solar power plant at its facility in Khyber Pakhtunkhwa. The project forms part of a 9MW total capacity, with the remaining 3MW expected to be commissioned in the 2025 financial year. The company did not disclose its total renewable energy capacity in the notice.


Pakistan: Thatta Cement commissioned its 4.8MW wind power project at its plant in Thatta, Sindh, on 3 April 2025. The project was reportedly completed ahead of schedule and brings the producer’s total renewable energy capacity to 9.8MW.


Vietnam: The government will allocate greenhouse gas emissions quotas to 150 facilities across the cement, thermal power and steel sectors, according to a draft decree discussed by the government. Under the proposed roadmap, quota allocation will be implemented in phases over the next five years.

These sectors account for 40% of national emissions, according to the Vietnam Investment Review, and are also subject to the EU’s carbon border adjustment mechanism. The draft decree proposes decentralised development of technical regulations and mutual recognition of carbon credit data with international partners. Quotas will be proposed annually by ministries and submitted to the prime minister for approval.

 Deputy prime minister Tran Hong Ha said “This is a technical decree with many variables. The Ministry of Natural Resources and Environment will provide a controlled framework and guiding principles using a ‘sandbox’ approach, allowing businesses to experiment while regulators monitor, evaluate and make adjustments.”


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.


Indonesia: Indocement recorded sales of 20.5Mt of cement and clinker in 2024, up by 1150t (6%) year-on-year. Corporate secretary Dani Handajani said the producer held a 30% domestic market share, with a 38% share in Java and a 21% share outside Java, according to the Cement Association of Indonesia (ASI). Handajani said that domestic bulk cement sales increased due to the new capital city project and acceleration of infrastructure projects in Java. Its exports reached 0.32Mt.


China: Authorities in the province of Hunan have identified a cement plant as the source of thallium contamination in the Leishui River following a botched demolition at the end of 2024, according to Sixth Tone news.

Yongxing County officials said that rainfall had washed thallium-laden dust from a dismantled kiln into the river. Levels peaked at 0.13μg/L, exceeding the national standard of 0.1μg/L, but have since returned to safe levels. The nearby city of Chenzhou is reportedly a hub for non-ferrous metal mining and processing, and a number of Chinese cement plants have begun to process industrial solid waste in recent years. According to Peng Yingdeng, a researcher at the Ministry of Ecology and Environment, this method is a common approach for hazardous waste disposal, but can lead to high concentrations of thallium salts in the kiln’s residue. The owner of the plant, Hunan Liantian Cement, added solid waste management to its list of businesses in September 2024.

The local government has despatched teams to apply chemical treatments to the affected areas, with water quality since returning to safe levels. Local residents’ drinking water was reportedly not affected.