Global Cement Newsletter

Issue: GCW768 / 15 July 2026

Headlines


Brazil is the focus this week with the news that local sales reached 32.9Mt in the first half of 2026. The market is also facing change in its composition with the change in ownership of InterCement earlier in the year and the ongoing sale of CSN Cimentos.

Graph 1: Cement sales in Brazil, 2018 - June 2026. Source: National Cement Industry Union (SNIC)

Graph 1: Cement sales in Brazil, 2018 - June 2026. Source: National Cement Industry Union (SNIC)

The latest data from the National Cement Industry Union (SNIC) shows that cement sales rose by 2.3% year-on-year to 32.9Mt in the first half of 2026 from 32.1Mt in the same period in 2025. As can be seen in Graph 1 above, this is the largest first-half figure since at least 2018. There has been a general trend of sales growth in this time, from 52.8Mt in 2018 to 67Mt in 2025. 2026 as a whole looks reasonably likely to surpass this barring any market shocks. SNIC has identified the Minha Casa, Minha Vida (MCMV) house building programme as the main driver of sales. It says that it accounted for 50% of new real estate project launches in the first quarter of 2026 and created a 10% rise in sales. An expansion of the programme in April 2026 to higher income families and revised government house building targets are expected to generate an additional 5Mt of cement consumption. The union also mentioned that the increased use of rigid concrete pavement (whitetopping) road projects is likely to contribute to infrastructure-related cement sales.

Unfortunately, SNIC’s list of potential risks to the cement sector is weighty. Rising and volatile fuel costs in relation to geopolitical events are similar to the rest of the world. The local interest rate, the Selic rate, is not expected to fall as much as anticipated by the end of the year. Other local issues include a change in regulated working hours that is expected to push up labour costs when it becomes law in the second half of 2026. SNIC also flagged up the growing economic cost of online gambling upon household debt and the direct consequence of this upon the self-build sector. This issue has been part of a national debate in Brazil and stricter rules were expected to be implemented in mid-July 2026.

Clarity on the future of CSN Cimentos should start to emerge in mid-August 2026. The deadline for bids is on 7 August 2026. Then a contract might be signed in September 2026 with a potential buyer if all goes well. However, as reporting by Valor Econômico has revealed, there may be a gap between the price CSN wants for its cement division and what the potential buyers are prepared to pay. The vendor reportedly wants around US$2.5bn but potential bidders were expecting a lower price, nearer to US$2bn. This is an issue with the Chinese companies. China-based companies linked to the sale previously have included Anhui Conch, Huaxin Cement and Sinoma International. Local companies Votorantim and Polimix Concreto were linked to the sale previously but it is unknown whether they will make bids or not.

Regarding InterCement, a consortium led by LATCEM, Redwood Capital Management and Moneda Patria Investments took control in April 2026. The three companies also injected US$110m into the company during the process. In an interview in July 2026 Marcelo Mindlin, the controller of LATCEM, confirmed that the new management is preparing to divest Loma Negra. InterCement is currently the controlling shareholder of the Argentina-based cement company. He added that the consortium is still building its strategy for InterCement and working out which sections of the business offer the best return.

Finally, the government in Brazil announced preliminary plans for its carbon market in May 2026. Cement is set to be included in the first phase of the scheme that will start in 2027. The paper, ​iron and steel, aluminium, oil and gas, and air transport sectors will also be included. The scheme will include a four year preparation period where emissions monitoring is prepared, conducted and then allocations set. So, if the market continues in its proposed form, the local cement market might start facing carbon fees from 2031 onwards.

The current state of the cement market in Brazil is looking promising but it is delicate. It is understandable why CSN might be optimistic about the price it could get for selling its cement business given the sales figures so far in 2026. We’ll have to wait a few weeks to find out what the potential bidders think. The rise in cement sales may also have given the new management at InterCement an easy introduction to taking charge of the business before they have to take any tough decisions. Plans for a carbon market in Brazil mean that another major cement producing country is engaging with decarbonisation at the legislative level.


Brazil: Lhoist has appointed Tiago Mudesto Gomes as Executive Plant Manager at its Arcos lime plant in Minas Gerais.

Gomes previously worked for cement-producer Votorantim from 2015 to 2026, becoming its Global Maintenance General Manager in 2024. Before this he worked as the plant manager at the Cuiabá, Sorocaba and Primavera cement plants. Earlier in his career he held maintenance manager roles with InterCement and as a technical sales manager for FLSmidth. Gomes holds an undergraduate degree in mechanical engineering from the Centro Universitário UNA and a master of business administration (MBA) qualification from the Insper Learning Institution.


US: CM Shredders has appointed Michael Hillstrand as General Manager.

Amongst other roles, Hillstrand previously worked Shred-Tech in Canada from 2021 to 2024. Before this he worked for Calco Plating & Recycling from 2024 to 2021 eventually become its president. Hillstrand is a graduate in business administration from the University of Missouri-Columbia.

Florida-based CM Shredders designs and manufactures equipment for the tyre recycling industry, with systems operating in installations across five continents and more than 28 countries.


UK: Material Evolution (Mevo) has appointed Phil Litchfield as its Technical Sales Manager.

Litchfield holds over 20 years of expertise in precast concrete products, having recently worked as Sustainability Manager at Brett Landscaping and Building Products. Before that he held the position of Site Technical Manager at Marshalls.

Material Evolution produces an 'ultra-low carbon' cement product called MevoCem. It commissioned its Mevo A1 Production Facility in Wrexham in 2024.


Zimbabwe: China-based Shuntai Investments has reportedly made ‘significant’ progress on its US$200m plant in Chegutu, Mashonaland West Province, and will begin operations in September 2026. The plant itself cost around US$120m, with the rest invested in ‘complementary infrastructure,’ according to The Herald Zimbabwe. This includes a 50MW solar power plant, a packaging facility and a fleet of electric vehicles.

The plant will produce 6000t/day of cement, both bulk and bagged, under the Shuntai brand. Around 400 people will be employed alongside Chinese technical personnel during the initial phase, with total employment expected to reach 1500+ jobs. Shuntai administrator Jack Zhang said that the plant would improve the availability and affordability of cement.


Türkiye: Çimsa has commissioned its new calcium aluminate cement (CAC) production line at its Mersin plant. The investment was US$31.8m and the line has a production capacity of 66,000t/yr. This has increased Çimsa’s CAC production capacity from 131,000t/yr to 197,000t/yr. In February 2024, it increased its CAC capacity from 65,000t/yr to 131,000t/yr.

The company said that it can now meet around 20% of global consumption in markets excluding China.


Germany: Inform is restructuring its Building Materials Logistics division with the establishment of Inform Evotess, a new independent company within the Inform Group which it says will bundle and further develop all building materials logistics activities. The new entity combines more than 35 years of industry experience with the agility of a specialised unit, according to the company. Evotess will continue to draw on Inform’s international network, technological expertise and experience while creating additional room to improve existing solutions and develop new products. The new company will be managed by Thomas Bergmans and Lars Lambrecht.

“With Evotess, we are giving a successful and highly specialised business area the right organisational framework for its next stages of development,” said Andreas Meyer, Co-CEO of Inform. “Building materials logistics have developed strongly over many years. With the new company, this expertise remains closely connected to Inform while gaining even more focus in the market.”


China: A fleet of LiuGong DW105AE electric wide-body trucks has been deployed at one of Conch Cement’s mines in south China, as part of its efforts to operate ‘zero-carbon mines.’ The vehicles have a rated load of 70t and are equipped with a fully hydraulic load-sensitive steering system. They are also equipped with mining power batteries. The truck has a 500kW motor for increased traction and a large displacement pump to improve lifting time.

In 2025, Conch Cement said “Conch Cement actively responded to the national ‘Dual Carbon’ goal, accelerated the pace of electrification of transportation equipment, and systematically promoted the strategic transformation of construction machinery from diesel-driven to electric-driven. In 2025, the electrification rate of transportation equipment increased to more than 25%, representing a year-on-year increase of 12.5%.”


Pakistan: The Peshawar High Court (PHC) has restricted Kohat Cement from operating its coal-fired power plant, citing ‘serious’ environmental and public health risks to nearby residents, according to The Express Tribune. The court also issued notices to the provincial government, the Khyber-Pakhtunkhwa Environmental Protection Agency (EPA), the Health Department, and other concerned parties. In its written order, the court directed the EPPA to constitute an inspection team to examine the coal power plant in accordance with environmental laws and rules. The team has been ordered to submit a detailed report to the court within 15 days.

The cement plant is located close to residential areas in Babri Banda, with the coal power plant being constructed just 200m away. The lawyer contended that the existing cement plantasia is already causing pollution, and the addition of the coal power plant would worsen air quality and lead to the spread of ‘various diseases’ in the area. The court observed that, while the coal power plant is intended to supply electricity to the industrial unit, its operation is likely to have adverse effects on the health of local residents. According to the order, the project has already commenced work and is emitting pollution beyond the limits prescribed under environmental laws. The court was informed that, although an Initial Environmental Examination (IEE) was approved earlier, the plant cannot commence operations without obtaining the necessary post-construction operational approval from the EPA, which has reportedly not been granted. The court ordered that the parties shall not operate the coal power plant without obtaining the required approval from the EPA. All parties have been directed to strictly comply with the court's orders.


Ethiopia: The Africa Dialogue on Cement for Green Industrialisation concluded with a call to accelerate practical action on low-carbon cement and concrete as Africa enters a period of urban growth and infrastructure development. The event was hosted by the Ministry of Industry of Ethiopia and jointly organised by the United Nations Industrial Development Organisation’s (UNIDO) Net Zero Partnership for Industrial Decarbonisation, together with the GCCA and other organisations. It brought together more than 110 participants from 39 countries, including cement producers, government representatives, industry associations, research institutions and others.

UNIDO said that around 80% of Africa’s 2050 building stock is yet to be constructed and the continent’s cement production is therefore expected to increase significantly in the coming decades. The event focused on solutions that are already available and can be scaled, including reducing the clinker content of cement through supplementary cementitious materials and calcined clay cement, increasing the use of alternative fuels and improving material efficiency. Participants visited Habesha Cement plant on the first day.

Stephen Kargbo, director of the UNIDO sub-regional office and representative to Ethiopia, the African Union and UNECA, said “Every bag of cement we choose today is a vote for the kind of Africa we will live in tomorrow. The decisions we make today will lock in emissions for the next half century. If we embed low-carbon norms now, Africa can industrialise sustainably, attract green investment and equip its youth with the skills to lead tomorrow's construction sector.


Spain: Reduced working hours due to the heatwave sweeping Europe currently have come into effect in Extremadura. From 14 July 2026 until 14 August 2026, workers in the construction and cement-related sectors will work for seven hours a day. The measure is included in the provincial collective agreements of Badajoz and Cáceres and is mandatory for all companies. The reduction is in response to occupational risk prevention measures, allowing for intensive morning shifts, avoidance of exposure to the sun during the hottest hours of the day and therefore lowering the risk of heatstroke. Companies must also guarantee abundant water at all construction sites. Trade union Comisiones Obreras (CCOO) has insisted that the reduced hours should be extended through the summer, and has reportedly been advocating for shorter, morning shifts for years. It said that it would be vigilant in reporting any violations to the labour authorities.


Armenia: The Ararat Cement plant has restarted operations following weeks of disruption, according to Armenia's Ministry of Economy. Deputy Economy Minister Edgar Zakaryan visited the facility to review the production process alongside the plant's general director.

The restart comes after the plant was sealed in early July 2026 following an investigation into businessman and opposition leader Gagik Tsarukyan. Employees staged protests demanding the right to return to work. Prime Minister Nikol Pashinyan said that the government is preparing to appoint a state manager to oversee the plant as part of ongoing proceedings.


Bangladesh: The Bangladesh Coast Guard has detained 22 people and seized three cargo boats carrying a large quantity of cement allegedly being smuggled to Myanmar. During a search, officials recovered 2400 bags of Diamond Cement in the boats, along with fertiliser. The seized goods are estimated to be worth around US$11,356. According to local press, seizure of the same cement brand in recent anti-smuggling operations has raised questions among observers and called for increased scrutiny.


India: Nuvoco Vistas has announced the inauguration of a 2Mt/yr cement grinding plant at its Limla facility in Surat, Gujarat, which it says will help it strengthen its footprint in the west of India. Nuvoco Vistas is aiming for 35Mt/yr capacity by the 2028 financial year. The plant will also enable Nuvoco to serve adjoining markets in western Maharashtra while releasing much-needed cement capacities previously supplied from the company’s northern plants exclusively for northern India markets, it added.


Bolivia: The Bolivian state-owned cement company Ecebol in Oruro will resume operations at its clinker kiln between 21-25 July 2026 after a year of inactivity. Rommel Mallo Ordoñez took over as plant manager in June 2026. The previous manager reportedly only operated the kiln for two or three months a year, according to local press. The plant will operate at 72% of its operating capacity due to a lack of maintenance since 2019.

The plant underwent an inspection on 10 July 2026, and received criticism for its management of cement sales. Administrative and bureaucratic problems affecting cement sales were cited, along with allegations of hoarding. The company is scheduled to be monitored, and a follow-up visit is planned for August 2026.


Spain: Cement consumption in Spain is expected to reach 17Mt by the end of 2026, 2% more than the previous year, according to estimates by Oficemen. It has lowered its initial forecast by one percentage point due to the slowdown in residential visas and economic and political uncertainty.

The cement industry association's scenario includes around 150,000 homes approved during the year, 5.6 million m2 of non-residential construction and an investment in infrastructure close to €13bn. Between January and May 2026, consumption increased by 7% to 6.78Mt, and March and April 2026 saw double-digit growth. Between June 2025 and May 2026, growth stands at 12%, although Oficemen expects a moderation during the second half of 2026, when the data will begin to be compared with the high levels recorded from July 2025 onwards. The organisation believes that Spain would need to exceed 20Mt/yr to address the accumulated housing deficit, estimated at around 750,000 units, and the infrastructure needs associated with population growth and tourism activity.


Argentina: Total cement despatches in Argentina fell by 1% year-on-year to 803,147t in June 2026, and accumulated despatches in the first six months of 2026 fell by 3% year-on-year to 4.67Mt. Domestic despatches fell by 1% year-on-year to 800,302t in June 2026, while exports fell to 2846t from 5250t in June 2025. Imports rose to 195t in June 2026 from 147t in June 2025.


Afghanistan: Construction work on the second phase of the Jabal Saraj cement plant in central Parwan province began on 9 July 2026. The plant will have a production capacity of 1.8Mt/yr of cement, according to Amu news. The inauguration ceremony was attended by Deputy Prime Minister for Economic Affairs Mullah Abdul Ghani Baradar, Deputy Prime Minister for Administrative Affairs Mawlawi Abdul Salam Hanafi, the governor of Parwan and other officials.

Abdul Salam Hanafi said "If this plant is completed successfully, we hope it will meet the country's domestic demand for cement and may even create the capacity to export cement to other countries."

Deputy Prime Minister for Administrative Affairs Mawlawi Abdul Salam Hanafi said increased domestic production would help lower cement prices and contribute to greater stability in Afghanistan’s construction sector. All financial and technical aspects of the project are reportedly being funded and implemented by state-run company National Development Corporation. According to the company, all stages of production, including clinker production, will be carried out at the plant.

The plant began operations in 1958, but has been marked by repeated shutdowns due to conflict, aging machinery and weak infrastructure. In 2018, the former government’s Ministry of Mines and Petroleum announced plans to put the construction of a second phase out to tender. At the time, the investment was expected to be US$170m, with a capacity of 1Mt/yr of cement, but this was not completed before the collapse of the government in August 2021. In 2023, a contract for the first phase of the project was signed with a Qatar-based company for a reported investment of US$220m. Officials have not explained how the newly announced second phase relates operationally or financially to the earlier agreement. It has also not been disclosed whether the 5000t/day capacity refers to the second phase or to the projected capacity of the expanded plant.


Fiji: Pacific Cement has proposed a US$15.6m upgrade project for its plant in Lami, which reportedly includes a new cement mill, two new silos and a packing plant, according to local press. However, residents have expressed concern regarding potential impacts on the environment. At the first environmental impact assessment public consultation in Lami, CEO Josua Satavu said that the new mill would be more environmentally friendly and that commissioning was anticipated for October 2027. In response to environmental concerns regarding clinker dust and water quality, Satavu said that the company would mitigate ‘what [it] can,’ but that the mill upgrade would resolve many of the concerns raised. The proposed mill would have a production capacity of 1000t/hr at full capacity. Based on an initial questionnaire, 77% of residents agreed with the development.


Brazil: Cement sales rose by 2% in the first half of 2026 compared to the same period last year, reaching 32.9Mt, according to the cement industry association SNIC. In June 2026, 5.8Mt were sold, representing a 8% year-on-year increase. The positive results were reportedly driven by a robust labour market, with unemployment closing the quarter at the lowest rate since 2012, at 6%. However, the price of petcoke saw increases of around 30% so far in 2026, along with increases in diesel prices driving up road freight costs. A potential shift to a 40-hour week for the cement sector is estimated to raise labour costs by approximately 15%, from standard 24/7 operations. Industrial confidence improved, reflecting the easing of Middle East conflicts and the stabilisation of international oil prices. However, the construction sector showed ‘signs of pessimism’, weighed down by rising costs, slowing activity, and a ‘severe’ shortage of skilled labour.

José Eduardo Ramos, chair of the board of SNIC, said “The sector closes the first half of the year with a positive performance. Declining unemployment and a total wage bill at historic levels were key factors in this outcome. Housing - particularly the Minha Casa, Minha Vida program - combined with the acceleration of rigid-pavement road projects and concrete roadways, played a decisive role in our growth. The economic landscape calls for caution: rising inflation, upward revisions to interest rate (Selic) projections, and record levels of household debt continue to severely constrain credit capacity and consumer spending. Nevertheless, the sector maintains its outlook of ending the year with growth of close to 2%.”


Peru: National shipments totalled 1.1Mt in June 2026, registering an increase of 12% year-on-year and 11% in the accumulated 12 months. Cement production reached 1Mt, representing an increase of 11% year-on-year and 10% in the accumulated 12 months. 0.6Mt of clinker was produced, representing a decrease of 29% compared to June 2025 and 0.7% in the accumulated 12 months.

As for exports, 12,820t of cement was exported in June 2026, representing an increase of 7% compared to June 2025 and 6% in the accumulated 12 months. 62,747t of clinker was exported, representing a decrease of 36% compared to June 2026 and 28% in the accumulated 12 months. 12,014t of cement was imported, an 83% increase from June 2025 and an 18% increase in the accumulated 12 months. 74% of imports came from Chile via the Tacna land terminal and 26% came via the Port of Matarani from Vietnam. 72,250t of clinker was imported, equivalent to a year-on-year decrease of 33% and a 14% increase in the accumulated 12 months. 61% of imports via the Port of Callao and 39% came via the Port of Matarani, both from South Korea.  


Germany: CI4C, the consortium comprising cement producers Dyckerhoff, Heidelberg Materials, Schwenk Zement and Vicat, has officially inaugurated its oxyfuel carbon capture project at the Mergelstetten cement plant. Vicat said that the ‘catch4climate’ project had been seven years in the making. The oxyfuel process was designed by thyssenkrupp Polysius and the project received private investments of more than €120m, with a 450t/day rotary kiln line built at the plant. The facility is reportedly the first to use the ‘pure oxyfuel’ process for carbon capture and is dedicated exclusively to research and development. More than 200 guests attended the event, including Baden-Württemberg’s Minister for the Environment Thekla Walker.  

The project had already reached important milestones: At the end of May 2026, clinker was successfully produced for the first time. In mid-June 2026, the first supply of oxygen to the facility took place.


Switzerland: Swiss cement plants slightly increased their deliveries in the second quarter of 2026, according to the latest report by the cement industry association Cemsuisse. They supplied 1Mt of cement to the domestic market (including Liechtenstein) between April 2026 and the end of June 2026, 1% more than the previous quarter. For the first six months of 2026, deliveries reached approximately 1.8Mt, up by 0.7% year-on-year. The share of CEM II and III cements reached a new record of 98.7%, with ordinary Portland cement accounting for just 1.3%. The association said it was ‘observing with concern’ the transport sector, where the share of deliveries by rail continues to decline. Rail transported 32.6% of deliveries, compared to 34.6% in the same period of 2025. It attributed this to the ‘persistently difficult’ conditions in the transport sector and the ‘constant deterioration’ of the price-quality ratio offered to the Swiss cement industry.


Saudi Arabia: Cement sales volumes increased by 9% year-on-year in June 2026 and 5% month-on-month to 4.39Mt, reflecting a recovery from the decline in May 2026, according to Al Rajhi capital. Sales volumes in the second quarter of 2026 remained broadly stable year-on-year and were up by 3% quarter-on-quarter. Yamama Cement continues to maintain dominant market share. Clinker inventory rose by 0.1% month-on-month to 44.8Mt. Inventory levels increased in the Central, Eastern and Western regions in the first half of 2026.