Cement News tagged under: overcapacity
Indonesian industry to face continued overcapacity challenge26 November 2020, Published under Cement NewsThe COVID-19 pandemic has seen Indonesian cement sales drop throughout most of 2020 with October sales down 9.7 per cent YoY. Moreover, demand is predicted to fall 11 per cent YoY by the end of the year, according to PT Indocement Tunggal Prakarsa Tbk. However, the industry is currently challenged by considerable overcapacity. In 2020 total domestic cement capacity is 116.4Mta with a plant utilisation of 54.6 per cent, supplying a domestic market of an estimated 63.6Mta. Competition is e... |
ASI welcomes new factories in eastern Indonesia only17 September 2020, Published under Cement NewsWith two new cement plants starting operations in Grobogan, Central Java, and Jember, East Java, Indonesia, domestic producers are expected to see a drop in capacity utilisation rates as the excess production capacity is set to rise to 41Mta, according to the Indonesian Cement Association. "Two new factories in Grobogan, Central Java and Jember, East Java are currently working on commissioning. Hopefully there will be no more issuance of new cement plant permits because plant utilisation n... |
Malaysia – finding its resolve02 June 2020, Published under Cement NewsWithin southeast Asia, Malaysia represents one of the largest consumers of cement per capita. The lacklustre demand trends seen in the past 4-5 years were forecast to ameliorate in 2020 due to an influx of government-backed projects. However, as COVID-19 wreaks havoc on economies and industries, the impact on demand remains to be seen. By Manas Tamotia, LEK Consulting, Singapore. Given that Malaysia’s cement sector was showing a resolve to rationalise and yield long-term value, LEK... |
China’s cautious confidence04 March 2020, Published under Cement NewsWith most provinces reporting a growth in cement output, Chinese cement companies enjoyed a bountiful year in 2019, supported by stronger peak-season demand and stable, high prices. For 2020 industry sentiment is one of cautious confidence despite a forecast indicating that demand will slip slightly. Furthermore, the current coronavirus outbreak is also expected to affect cement demand in the first half of the year. By Fei Chen and Bailin Chen, China Cement Association, China. Improvi... |
Turbulent times for Africa?17 September 2019, Published under Cement NewsFor the cement sector, turmoil has probably come to a head in many parts of Africa. Cement demand has slowed or fallen back into the red in many African countries, while overcapacity and low utilisation rates are characteristic of many markets. However, much of this turmoil is self-inflicted. Tony Hadley provides an uncompromising assessment of the industry on the continent and examines the root causes of business failure in some key markets. By Tony Hadley African Advisory. A perfect... |
Nepal's cement producers call on government to find export markets14 August 2019, Published under Cement NewsNepal's cement producers are demanding that the government supports them in attempts to find export markets for cement and clinker as overcapacity in Nepal is expected to rise steeply in the next few years. The country's cement industry has a total of some 40 production facilities with a cumulative cement capacity of 15Mta, while domestic demand is currently below 10Mta. A further 21 plants are reportedly preparing to start up in the next two years, says Online Khabar. By mid-2021 Nepal'... |
Tourah Cement halts production due to oversupply18 June 2019, Published under Cement NewsEgyptian cement producer Tourah Cement, owned by Heidelberg Cement, has suspended production as a result of oversupply in its domestic market. The company is considering liquidation. “Estimated cement consumption during 2019 will end at around 50Mt while total capacity of all competitors stands above 85Mt,” Tourah Managing Director, Jose Maria Magrina, said in a letter to employees last week and seen by Reuters. “This extra capacity is more than the total consumption in one year of countri... |
Tanzania Portland Cement reports increased profits for 201812 June 2019, Published under Cement NewsTanzania Portland Cement (TPC PLC), also known as Twiga Cement, recorded a 28 per cent YoY increase in operating profit for 2018, rising to TZS80.06bn (US$34.8m) from TZS62.67bn. The growth in profit has been attributed to a 28 per cent increase in revenue and higher clinker production, despite that selling and administrative expenses were also up nine per cent YoY. "2018 was also critical to consolidate the processes and the organisation at country level, but also a good opportunity for T... |
ACC expects Indian demand to increase by 7% in 201818 June 2018, Published under Cement NewsIndia’s ACC expects the country’s cement demands to grow by seven per cent this year, assisted by infrastructure projects and the continued focus on rural development and affordable housing schemes. However, intense competition and insufficient consumption will lead to excess capacity, according to the producer. "The cement industry had a growth of six per cent in 2017 as against 5.1 per cent in the previous year. Around 66 per cent of its demand came from the housing sector, followed ... |
Xinjiang cement industry returns to profit19 October 2017, Published under Cement NewsThe cement industry in Xinjiang province is faced with higher rates of overcapacity than any other part of China, making losses in three consecutive years. However, sector reform is expected to return the industry to profit, according to a government official. Cement makers in Xinjiang have taken on a staged approach to operation, under which they stop production during the winter heating period and pick back up in the spring, which has played a positive role in reducing overcapacity. ... |