Global Cement News

Germany: The Verein Deutscher Zementwerke (VDZ) has forecast domestic cement consumption of 28.7Mt in 2020, consistent with the 2019 level. The impacts of the coronavirus lockdown were offset by “a good start to the year, not least due to the weather conditions” and “the continued operation of construction sites in March thanks to the quick actions of politicians.”

The organisation said that the situation was unprecedentedly unpredictable with orders and building permits currently in decline. It expects demand to partly tail off in the fourth quarter of 2020, falling by between 3 - 5%, as companies postpone or discard planned developments in the face of restricted budgets. It said, “Nonetheless, the government’s economic stimulus pacts will undoubtedly provide a positive impetus through such initiatives as public infrastructure and multi-family housing projects.

China: Anhui Conch has announced the start of production at its subsidiary Basu Conch’s 0.9Mt/yr-capacity clinker production line, its first in the Tibet Autonomous Region. Anhui Conch Sichuan and Chongqing regional director Zhang Laihui said, “Thanks to its mature corporate management, Basu Conch has built an industrial plant in the wilderness in 468 days – that’s ’Conch speed.’ Our group mission of ’industrial aid to Tibet’ stands as an example of good management, development and efficiency in public-private cooperation.”

Bangladesh: Cement producers imported US$760,000-worth of raw materials in the 2020 financial year which ended on 30 June 2020, down by 13% year-on-year from US$874,000 in the 2019 financial year. Clinker, calcareous stone, granulated blast furnace slag (GBFS) and gypsum imports totalled 18.6Mt, down by 11% from 21.0Mt, compared to annual growth of 15 - 20% since 2010.

The Daily Star newspaper has reported that this was due to decreased cement demand, with sales falling to 65,000t in April 2020 from 125,000t in March 2020 on account of the start of the nationwide coronavirus lockdown. Premier Cement managing director Amirul Islam said, “We are not getting the benefits we expected from the government. The sector’s capital is gradually running out, so all kinds of discretionary tax cuts are needed to save this industry.”

Bangladeshi cement producers import raw materials from Thailand, Vietnam and China.

Japan: Taiheiyo Cement recorded a net profit between 1 March 2020 and 30 June 2020, the first quarter of the 2021 financial year, of US$30.6m, down by 42% year-on-year from US$52.6m in the first quarter of the 2020 financial year. Sales fell by 3% to US$1.88bn from US$1.94bn. The company said that the coronavirus outbreak affected sales in all regions.

India: Star Cement’s profit in the first quarter of the 2021 financial year, to 30 June 2020, fell by 47% year-on-year to US$5.91m from US$11.2m. This was caused by a by 37% decline in sales to US$39.0m from US$61.6m. Earnings before interest, taxation, depreciation and amortisation (EBITDA) also fell, by 42% to US$8.72m from US$15.0m.