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Cement dispatches drop by 9.07pc in October

ISLAMABAD: Due to the continuous increase in cost of doing business plus devaluation of local currency against dollar, cement dispatches are showing a declining trend for the past few months.

As per details, cement dispatches declined by 9.07 percent in October 2021. Total Cement dispatches during October 2021 were 5.214 million tons against 5.735 million tons dispatched during the same month of last fiscal year.

According to data released by All Pakistan Cement Manufacturers Association (APCMA), local cement shipments by the industry during the month of October 2021 were 4.603 million tons compared to 4.859 million tons in October 2020, showing a reduction of 5.29 percent.

Exports dispatches suffered a massive decline by 30.09 percent as the volumes reduced from 875,266 tonnes in October 2020 to 611,884 tonnes in October 2021.

In October 2021, North based cement mills dispatched 3.831 million tonnes cement in domestic markets showing a decline of 8.01 percent against 4.164 million tonnes dispatched in October 2020. The South based mills dispatched 771,755 tonnes cement in local markets during October 2021 that was 11.01 percent higher compared to the dispatches of 695,221 tonnes during October 2020.

Exports from North based mills massively declined by 74.03 percent as the quantities reduced from 283,389 tonnes in October 2020 to 73,608 tonnes in October 2021. Exports from the South also decreased by 9.06 percent to 538,276 tonnes in October 2021 from 591,877 tonnes during the same month last year.

During the first four months of the current fiscal year (4MFY22), total cement despatches including domestic and exports were 18.039 million tonnes, which calculates to 6.68 percent lower than 19.331 million tonnes dispatched during the corresponding period of last fiscal year.

Further analysis indicate that domestic uptake of the commodity slightly increased by 1.1 percent to 15.882 million tonnes from 15.713 million tonnes during July-October 2020 whereas exports during the same period declined by a massive 40.4 percent to 2.157 million tonnes from 3.617 million tonnes during July-October 2020.

North based Mills dispatched 13.314 million tons cement domestically during the first four months of current fiscal year showing a decline of 2.3 percent than cement dispatches of 13.627 million tons during July-October 2020. Exports from the North declined by 49.06 percent to 461,275 tons during July-October2021 compared with 905,575 tonnes exported during the same period last year.

Domestic dispatches by South based Mills during July-October2021 were 2.56 million tons showing a healthy increase of 23 percent over 2.08 million tonnes of cement dispatched during the same period of last fiscal year.

There was, however, a massive decline of around 37.45 percent in exports from the south zone as the volumes reduced to 1.696 million tonnes in the first four months of the current fiscal year from 2.712 million tonnes during corresponding period of last fiscal year.

Official spokesman of All Pakistan Cement Manufacturers Association (APCMA) claimed that continuous increase in input costs coupled with recent hike in rupee to USD parity are major concerns for the industry. These price escalations are seriously affecting the cost of doing business in local as well as international markets.

New northern Pakistan crushing site planned


The Khyber Pakhtunkhwa Provincial government of Pakistan has  planned a limestone mining/crushing site at Khanpur for the cement industry. The scheme has been approved by the Cabinet and the Assembly as Annual Development Plan (ADP) in the FY21-22 financial budget for the country’s northern area.  

KP Chief Minister Special Assistant on Mining, Arif Ahmadzai, informed the media that the KP Mines Department had awarded rights for establishing stone crushers near Khanpur Dam, covering an area of 3750 acres with the potential of 300 crusher plants. He added that the area with reserves of around 8bnt of limestone could initially generate PKR200m-500m per annum (US$1.21m-US$3.04m), rising to PKR8bn per annum.

However, environmental experts are surprised about how the scheme was approved and became part of the ADP without any environmental assessment by the authorities.

It is pointed out that, after the Supreme Court ordered the removal of 60 stone crushers from Margala mountains in Islamabad, which was a significant source of limestone for stone crushers, and imposed a complete ban on mining, the owners of the displaced stone crushers were desperate to obtain mining rights in the vicinity. The then chief justice, while ordering the removal of stone crushers from Margala in 2016, said, “We don’t want to make people jobless, but we have to protect the environment.” 

Adani Enterprises plans 5-MTPA cement plant in Maharashtra

Initial invest will be around ₹1,000 crore for the cement plant, say sources

In order to realise its cement business plans, Adani Group is setting up a 5-MTPA cement plant in Maharashtra with an initial investment of upto ₹1,000 crore, sources in the know of the development said.
Adani Enterprises Limited (AEL), through its wholly-owned subsidiary Adani Cement Industries Limited has identified about 100-acres of land near Shahbaj village, in Alibag taluka of Raigad district near the coastal region of Maharashtra.

“About 25 acres of land has been acquired so far for the cement project, which will have an initial capacity of 5 Million tonnes per annum with an approximate investment of ₹900-1,000 crore,” the source told BusinessLine.
Sources further informed that Adani will also have a captive jetty in the district to source fly ash and clinker besides other dry bulk cargo of raw materials required for the plant. The jetty will have a berth-head besides a conveyor line and mooring facility which will be connected to the plant site with an approach road, sources informed.

An emailed query sent to the Adani Group on the development remained unanswered.
Notably, AEL had announced the incorporation of ACIL on June 11 at ROC, Ahmedabad with authorised share capital of ₹10 lakh and paid up share capital of ₹5 lakh to carry out the business as manufacturers, producers, processors of all types of cements.

Notably, Adani Group Chairman, Gautam Adani had earlier announced the group’s plans to foray into cement business. While announcing his ₹55,000-crore worth of investment plans during the Vibrant Gujarat Global Summit in Gandhinagar in January 2019, Adani had indicated to set up “a one million ton of Copper Smelting and Refining project, a Cement and Clinker manufacturing unit in Lakhpat.”
The proposed 10-million tonnes per annum Lakhpat cement plant has been on hold for some time. Adani Enterprises shares traded at ₹1,422 during early trades on BSE on Thursday, down by nearly 2 per cent over previous close.

Second Covid-19 wave expected to reduce quarterly Indian cement sales by 25%

India: Ratings agency ICRA has forecast a 25% year-on-year decline in cement sales during the first quarter of the 2022 financial year to 30 June 2021. Domestic cement demand fell by 4% year-on-year and by 35% month-on-month in April 2021, according to the Press Trust of India. The agency said that this was due to the spread of the Covid-19 outbreak to rural areas and the imposition of numerous regional lockdowns. Pent-up demand is expected to drive a gradual recovery in the second quarter from July 2021. Costs for cement companies increased by 5% nationally year-on-year in April 2021. Increased fuel, power and transport costs all contributed to the rise.

Source : Global Cement

Sulzer Chemtech and Blue Planet to reduce cement emissions with CCUS

Fluid engineering company Sulzer Chemtech is partnering with Blue Planet to drive the optimisation of Blue Planet’s carbon capture, utilization and storage (CCUS) solutions.

Sulzer Chemtech is developing a carbon capture unit that will be installed in Blue Planet’s pilot plant, currently being constructed in Pittsburgh, California, US, and will capture emissions from an adjacent natural gas-fired power plant.

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As part of the pilot project, Blue Planet is developing a CCUS system that removes CO2 diluted in flue gases and uses it directly to form carbonates for mineralization in the form of construction-grade aggregates. According to Blue Planet, this offers a sustainable building block for net carbon-neutral or carbon-negative concrete. As a result, the solution can offset cement’s greenhouse gas emissions by permanently sequestering CO2 in concrete as aggregate and improve the sustainability of cement manufacturing and other CO2 emitting industries.


Image credit: Blue Planet
The facility will leverage Sulzer Chemtech’s advanced mass transfer components that have been specifically developed to support carbon reduction applications, such as MellaPakCC structured packing. This provides high CO2 absorption performance while maintaining low energy consumption. As a result, Blue Planet’s facility will be able to leverage a cost-effective setup to maximize the greenhouse gas reduction from various industrial activities and use for the production of synthetic limestone and other carbonate minerals.

Torsten Wintergerste, president of Sulzer Chemtech, said: “We are delighted to be part of such a cutting-edge project that will help reduce carbon emissions from industrial applications as well as the cement sector. This further demonstrates how our state-of-the-art separation technologies and know-how can support demanding CCUS applications.”

In addition to these solutions, Sulzer Chemtech’s global development team will provide engineering support to further optimise the process steps.