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World Cement News

Saudi mega projects unable to halt cement demand decline in 2019

Saudi Arabia’s high-profile large-scale project will be unlikely to halt a fall in cement demand in 2019, according to Al Rajhi Capital.

The third-quarter of 2018 saw sales volumes decrease by 13 per cent YoY with average sales prices remaining week despite the price hike in the fourth quarter experienced by some cement producers.

In 2019 this decline in demand is expected to continue as the government’s capital spending remains limited and construction costs rise. The research house forecasts domestic cement consumption to fall of five per cent YoY to around 39Mt with the central region being impacted particularly. City Cement, Riyadh Cement and Qassim Cement have seen sales decreased by double digits.

Cemtech Middle East & Africa off to successful start

Over 200 delegates from the global cement industry have come together for Cemtech Middle East & Africa 2019, which is being held at the Grand Hyatt Dubai, UAE, between 17-20 February.

International Cement Review’s Managing Director, Thomas Armstrong, inaugurated the conference by welcoming delegates to Dubai. Mr Armstrong considered how oversupply is one of the largest issues that dominates the cement sector in the Middle East and African region, with a 55-60 per cent utilisation rate in 2017. Possible solutions for this issue include the export of cement and the optimisation of facilities. In particular, optimisation is a key focus of the event programme, with a break-out session delivered by INFORM (Germany) and a presentation on utilising AI for this purpose by McKinsey & Co (Germany).

Ahmad Al-Rousan, Secretary General of the Arab Union for
Cement and Building Materials (AUCBM) welcomes delegates
to Cemtech Middle East & Africa at the Grand Hyatt Dubai, UAE

Following this, Eng Ahmad Al-Rousan, Secretary General, Arab Union for Cement and Building Materials (AUCBM) delivered a welcome address for the event. Mr Al-Rousan noted that Cemtech MEA “is coming in a time when the cement industry is facing a very big change and big problems.” In total, member countries have 175 integrated plants and over 30 grinding mills, delivering a cement capacity of 353Mta. However, actual production for 2018 was 240Mt. One of the major factors contributing to this supply-demand gap are the ongoing wars in some of its member countries. Finishing, Mr Al-Rousan stated this ‘this conference is very important to exchange experience and to discuss all of these problems […] and to see what we want to happen in the future’. 

Paul Roger, Exane BNP Paribas (UK), opened the main conference programme with an outlook of global cement markets over the 2019-22 period. Mr Roger outlined some of the most important issues that producers will face in the medium-term including the impact of new sustainability regulations, Chinese expansion with Anhui Conch looking to expand overseas, equipment suppliers reducing barriers to entry and consolidation after mergers like Lafarge-Holcim and Heidelberg-Italcementi have reshaped the industry in key markets.

Tony Hadley delivered an analysis and outlook of the cement sector in sub-Saharan Africa. Providing an outlook of the issues of the sub-Saharan and north African cement sector, Mr Hadley reflected that previously “we have talked about the turmoil and that has probably come to a head in many parts of Africa.” In emerging markets, large overcapacity has led to some producers altogether leaving the market and moving to more developed regions. Furthermore, larger multinationals are expected to move away from mergers and acquisitions to focus on internal strategies. 

Hettish Karmani, U-Capital (Oman), looked at corporate performance in GCC markets and gave an outlook for the region in 2019. In terms of economic performance, the GCC region is expected to record around 3.9 per cent GDP growth in 2019. While total installed capacity of the cement sector is still expected to increase slightly, as a whole capacity growth is expected to slow considerably as a result of oversupply. Demand is expected to show minor growth compared to 2018 and reach 81Mt in 2019. 

DG Khan’s Arif Bashir (Pakistan) presented a case study of the construction and commissioning of Pakistan’s largest cement facility at 9000tpd. Alongside this project, cement capacity in the country is expected to rise from 48Mta in 2018 to 63.26Mta in 2019. Providing a background for the new capacity, Dr Bashir stated that the reason the “cement industry is growing in the country is because there are a lot of interesting projects coming up”, with China alone investing around US$68bn for new infrastructure projects.  

Pritish Devassy, Al Rajhi Capital (Saudi Arabia), provided an economic context for the cement sector in Saudi Arabia and considered methods which could stabilise the industry in the country, such as shutting down old capacity alongside mergers and acquisitions. However, Mr Devassy also suggested that it may be more profitable to start a new company, rather than buying an established one through the open market. Finally, although it would likely be financed by players external to the country, planned mega-projects such as Neom provide a positive outlook for cement demand.

The final session of the day moved away from evaluating the regional markets, with ASEC’s Ayman Hassan (Egypt) exploring the possibilities for monitoring and controlling cement mill vibration. Further along the production process, Markus Horstkötter (Haver & Boecker) showed the company’s innovative solutions which aim to move packaging technology into the future. Meanwhile, Olaf Michelswith (InterCem Engineering) highlighted the potential of Europe’s first network of regional modular grinding plants. Finally, Javier Martinez Goytre of GlobBULK Consulting (Spain) compared light assets and traditional shiploading facilities for clinker exports.

The programme is scheduled to continue with a series of presentations outlining the latest developments in manufacturing technology from the leading industry equipment suppliers, including Gebr Pfeiffer looking at the construction of turnkey EPC grinding terminals and FLSmidth highlighting its latest kiln firing technology.

The conference programme will finish on Wednesday, 20 February with a plant tour to Arkan Building Materials’ 4.5Mta facility in Al Ain.Published under Cement News

India Cements blames poor quarter on competition in south

India: India Cement has blamed poor quarterly results on ‘severe’ competition in the south of the country and bad weather. For the year to date, its revenue grew by 3% year-on-year to US$576m in the nine months to 31 December 2018 from US$561m in the same period in 2017. Its profit more than halved to US$3.62m from US$9.24m.

Landfill mulls cement solution for plastic waste


Roseridge ponders waste-to-energy deal

A new plan in the works at St. Albert’s landfill could one day see the city’s plastic waste burned to help make cement.

Roseridge landfill manager Gerard Duffy told the Gazette this week the landfill is looking into a plan to send the Sturgeon County region’s plastic waste to an area cement plant to be burned as fuel.

Roseridge (which takes St. Albert’s trash) is seeking out new ways to handle its plastic waste due to China’s new rules on recycling, which has barred many forms of plastic waste from its shores, said Morinville Coun. Stephen Dafoe, who sits on the landfill’s board. The new rules have prompted recyclers to tighten up what they accept in curbside recycling programs and frustrated many residents.

“If people get too frustrated with recycling, they’ll just start throwing it in the garbage,” he said, and the more waste that goes to the landfill, the quicker it fills up.

Duffy said he was approached by a group last month that proposed to have the landfill shred its plastic waste and ship it to a local cement plant, which would use it to fire its kilns. This process could accept all forms of plastic, even currently unmarketable ones like plastic clamshells and thin films.

Duffy emphasized the proposal is in its very early stages, and he isn’t sure if it is even feasible. The big question is the fuel requirement – the cement plant wanted about 60,000 tonnes of plastic per year.

“Sixty thousand tonnes of plastic is quite a bit for Roseridge to come up with,” he said, and he has yet run the idea past area governments.

Duffy said he isn’t sure if this process would throw all plastics in the kiln or just the unmarketable ones. He hasn’t figured out the cost, but said it would likely be cheaper than recycling.

“The cost to recycle plastic just keeps going up,” he said.

“If we can put all the plastic in one drum and take care of it, it would definitely alleviate some pressure off our residents.”

Dafoe said the board would get an update on this proposal later this month and would consider it in detail come March.

Greener cement

Duffy said Lehigh Cement’s Delta, B.C., operation has a similar waste-to-energy setup to the one under consideration at Roseridge.

That plant takes in tens of thousands of tonnes of wood waste and non-recyclable plastic per year to replace coal burned during cement production, said Jasper van de Wetering, alternative resources and CO2 mitigation manager for Lehigh. This change was made in part in response to the province’s carbon tax.

The cement industry creates about eight per cent of global greenhouse gas emissions, reports Carbon Brief – more than any nation besides China and the U.S. About half of that comes from heating limestone to make clinker (an ingredient in cement), while some 40 per cent comes from the fuel used to make that heat. The rest is from mining and transportation fuel.

van de Wetering said alternative fuels like waste can cut a cement plant’s fuel-related carbon footprint by as much as half, depending on the mix and amount of waste used, and help municipalities keep waste out of the landfill. The chemical reactions in cement production also trap many of the pollutants released by burning plastic in the cement itself.

Lehigh hopes to get about 35 per cent of the heat at its cement plants from waste by 2030, van de Wetering said. Lafarge got a $10 million grant from the Alberta government this week to support waste-to-energy at its Exshaw cement plant.

“The issue is establishing that supply chain,” van de Wetering said – you need about 100,000 tonnes of mixed waste to meet half a cement plant’s heating needs, and it all has to be shredded to the right size. Having a landfill that could provide such waste would help.

President Donald Trump signs executive order to prioritise local cement for infrastructure projects

President Donald Trump signs executive order to prioritise local cement for infrastructure projects – Cement industry news from Global Cement

US: President Donald Trump has signed an executive order making it the policy of the federal government to buy goods locally, including cement, for infrastructure projects. The directive aims to strengthen the ‘Buy American and Hire American’ executive order issues in 2017 by giving a preference for raw materials manufactured in the US for use in government-backed projects.

Mexico’s Cemex reports 4th-qtr loss, misses expectations

Mexican cement producer Cemex on Thursday reported a loss for the fourth-quarter, missing analyst expectations’ for a profit and sending shares lower.

Monterrey-based Cemex, one of the world’s largest cement producers, reported a net loss of $37 million for the quarter, when analysts had expected a profit of $136 million, according to a Reuters poll.