Global Cement News

Egypt: Greek-owned Titan Cement has made a major acquisition in buying the International Finance Corporation (IFC)’s 17.3% stake in Alexandria Development Ltd. Alexandria Development Ltd is 82.7% indirectly held by Titan Cement. It is the 88.9% owner of Alexandria Portland Cement, according to Mubasher. Alexandria Portland Cement made losses of US$4.56m in the nine months to 30 September 2019.

Nigeria: Dangote Cement’s non-executive director Fideli Madavo has resigned from his position on the company’s board. Madavo represented the stakeholder Public Investment Corporation (PIC), South Africa’s state pension fund, where he is head of resources and portfolio manager for strategic and African listed investments. The company has not stated a reason for the change.

India: The Union Council of India has approved a US$1.4bn distress fund to help developers finish partially completed residential developments. Business Today has suggested that the financing, which prioritises affordable and middle-income housing projects, will bolster demand for cement producers. The launch of the scheme follows India’s decision not to join the Regional Comprehensive Economic Partnership on 4 November 2019, for which it stated reasons of a trade deficit with 11 of the 15 other signatories and the rejection of its proposed three-tier structure for phasing out tariffs.

US: The Portland Cement Association (PCA) has releases a two-year forecast of moderate growth in cement consumption between 1 January 2020 and 31 December 2021. It projected growth of 1.7% in 2020, slowing slightly to 1.4% in 2021, corresponding to 2.1% and 1.7% GDP growth annually. Speaking at the 38th International Cement Seminar in Atlanta, PCA senior vice president and chief economist Ed Sullivan projected consumption growth of 1.6% - 2.3% in 2019 against GDP growth of 2.4% over the period, with consumption bolstered by the 2018 Federal Budget, which allowed for US$20bn in infrastructure investments in 2018 and 2019. He noted growing uncertainty (21% in 2019) with the expiry of the ‘pent-up demand zip that invigorates the initial stages of economic recovery long past.’

Rising house prices and mild inflation signify the continuation of the US economy’s longest expansion post-World War Two, with 161,000 net new jobs generated so far in 2019. With a forecasted population increase of 60m by 2040, US cement producers appears still have their work cut out in keeping up with demand.

Turkmenistan: Iron ore reserves of between 70Mt and 75Mt of around 20% iron recently discovered in the Turkmenbeshi district of western Turkmenistan could replace other ingredients in ordinary Portland cement (OPC) clinker production in the region, resulting in savings of US$10m/yr for producers. Trend News has reported that the deposits, located near Turkmencement’s 1.3Mt/yr integrated Kelete plant and Polimeks’ 1.0Mt/yr integrated Jebel plant, could sustain production for a century.