Thailand: Profits have risen at Siam City Cement due to cost cutting initiatives and lower energy prices despite disruption caused by government-related coronavirus responses. It also mothballed a kiln at its Saraburi plant in May 2020 to, “optimise resources and capacities corresponding to demand contraction across the region.” The group’s net sales fell by 10.9% year-on-year to US$679m in the first half of 2020 from US$792m in the same period in 2019. Its net profit rose by 6.2% to US$59.2m from US$55.8m.
INC distributors waiting up to a month for orders
Paraguay: Distributors of cement supplied by Industria Nacional del Cemento (INC) are reportedly waiting up to a month for their orders to be delivered, even if they pay in advance. The state-run cement company’s two plants are delivering around 40,000 bags/day despite a production capacity of up to 100,000 bags/day, according the ABC Color newspaper. INC inaugurated a new mill at its Villeta cement grinding plant in 2018 and has invested US$80m in its last set of upgrade projects.
Eagle Materials sells over 2Mt of cement in quarter
US: Eagle Materials says it has sold over 2Mt of cement in a single quarter for the first time in its history. Sales volumes rose by 35% to 2.09Mt in the first quarter of its financial year to 30 June 2020 from 1.6Mt in the same period in 2019. Sales revenue from its Heavy Materials division grew by 35% to US$274m from US$203m.
“While we are very pleased with our first-quarter performance, we recognise a high level of uncertainty persists in our markets and the overall economy: despite the decline in jobless claims from the March peak, total unemployment remains historically high; state and local governments face ongoing revenue pressure, which could have the potential to constrain infrastructure budgets; and, in some geographic areas important to our business, Covid-19 case numbers continue to escalate,” said Michael Haack, president and chief executive officer (CEO).
The group announced plans in May 2019 to split its Heavy Materials and Light Materials divisions into two independent businesses. However, it says the timing remains ‘uncertain.’
Indian cement demand forecast to drop by up to 15% in 2021 financial year
India: India Ratings and Research has forecast a drop of cement demand of 10 – 15% in the 2021 financial year due to coronavirus lockdowns in some states and flooding in eastern and central regions in the second quarter, according to the Economic Times newspaper. The research report attributed this to oversupply of cement in eastern regions. It also added that companies with more rural markets were likely to benefit from a quicker recovery.
