MEXICO: Baja mundial de cemento afecta a Cemex: analista

Sostiene una deuda por 20 mmdd y un negativo desempeño financiero, argumenta

La baja demanda de cemento en México y Estados Unidos presiona la operación de Cemex y, de entre todas las posibilidades de inversión en empresas cementeras en la Bolsa Mexicana de Valores (BMV), sus acciones están calificadas como las de “más alto riesgo”.

“Asignamos una calificación de riesgo alto para Cemex, debido a su elevado apalancamiento financiero, el sombrío desempeño financiero reciente y la incertidumbre en la demanda del sector de construcción en varios de los mercados internacionales clave donde opera la compañía”, detalla un informe de Banamex que circuló entre los inversionistas la semana pasada.

En estos tiempos de bajo consumo de cemento en Estados Unidos y México, los precios del cemento son el talón de Aquiles para la rentabilidad de Cemex.

Mas aún si no se olvida el compromiso de pagos que tiene la cementera para los próximos 15 años, de una deuda que asciende a 20 mil millones de dólares.

Y los principales mercados por el nivel de ingresos no le responden a la cementera.

Así, los “riesgos para las acciones de Cemex incluyen una mayor debilidad a la anticipada en la actividad de construcción en Estados Unidos y Europa y en la demanda de materiales pesados de construcción, así como también riesgos de disminuciones en los precios de sus productos por una demanda débil”, detalló el informe elaborado por Dan McGoey.

El reporte de Banamex señala que mediante una encuesta realizada en agosto detectó una disminución de 0.4% mensual y +3% anual en los precios regionales promedio del cemento al menudeo en México, a alrededor de 112 pesos por cada saco de 50 kilogramos (kg).

La baja demanda de cemento en ambos países inició en 2008 con los efectos más graves de la crisis económica mundial, que se potencializaron con los altos precios del barril de petróleo de toda la historia y que elevó el precio de insumos como el diesel utilizado para el transporte del oro gris, y el fluido eléctrico, sobre todo, en los Estados Unidos.

Como no sucedía hace años, el tema de los precios del cemento empezaron a ser tema de análisis y debate en los análisis de mercado y hasta en Twitter.

Desde mediados de la década de los 90 del siglo pasado, los críticos de Cemex afirman que la empresa cementera financia su expansión mundial con base en altos precios en el mercado mexicano.

La crítica se basa en el hecho de que la compañía obtiene más de la mitad de sus ingresos por la venta saco por saco que realiza entre la gente de menor poder adquisitivo en México, gente que cada sábado autoconstruye poco a poco su casa.

Sobre este tema, el pasado 16 de septiembre pasado, el presidente de Cemex, Lorenzo Zambrano, defendió en su cuenta de Twitter el precio del cemento en México.

“Es un mito que los precios del cemento en México son más altos que en Estados Unidos (EU), de hecho son más bajos que en EU y que en muchos otros países”, dijo el empresario. “He visto en Twitter y en otros medios que el cemento es 200% más caro en México que en EU, lo cual es falso, quisiera ver la evidencia...”, añadió.

Este año, tal y como sucedió durante los años de expansión de la cementera regiomontana, México significó 36% de sus ingresos y Estados Unidos fue sólo 9%; desde 2005 el mercado estadounidense se había convertido en la principal fuente de ventas de la compañía.

Hoy la baja demanda no le ayudan a no sólo aumentar precios, sino a no poder sostenerlos en varias regiones del país y también de Estados Unidos.

AFRICA: La BAD soutient le développement du secteur manufacturier au Rwanda en investissant 30 millions de dollars en faveur de la Cimenterie du Rwanda (CIMERWA)

Le Conseil d’administration de la Banque africaine de développement (BAD) a approuvé, mercredi 6 Octobre 2010, à Tunis, un prêt de 30 millions de dollars en faveur de la Cimenterie du Rwanda (CIMERWA).

Ce projet comprend la construction d'une cimenterie d’une capacité de 700 000 tonnes par an (TPA) au Rwanda, en remplacement de la cimenterie existante d’une capacité de 100 000 TPA, afin de satisfaire la demande locale qui est élevée, grâce à la croissance du secteur du logement et au développement des infrastructures. Le projet exploitera également plusieurs carrières à ciel ouvert situées aux alentours de la cimenterie.

La production accrue de ciment entraînerait également une baisse du prix du ciment pour les consommateurs finaux, diminuant ainsi le coût d’une composante clé du secteur de la construction, et favorisant le développement de l’industrie manufacturière.

Le projet serait l’un des premiers investissements industriels privés de la Banque au Rwanda et l’un des plus importants investissements industriels dans le pays. À ce titre, il ouvrira la voie à d’autres projets privés en montrant la capacité des entrepreneurs locaux à initier de grandes opérations ayant d’énormes répercussions sur l’économie nationale. 

Le projet développera le secteur de la construction et encouragera la croissance économique. Il créera 285 emplois durant sa phase de production, tout en améliorant les infrastructures sociales (santé, éducation, accès à l’eau) pour les populations avoisinantes. Il permettra au Gouvernement rwandais d’économiser des devises grâce à la substitution des importations actuelles par une production locale. De façon plus large, il profitera également à la Communauté de l’Afrique de l’Est 

en améliorant le commerce sous-régional. 

À cet égard, ce projet permettra de : promouvoir le développement des ressources humaines tout en mettant un accent particulier sur les sciences et la technologie ; soutenir le développement des infrastructures ; favoriser l’intégration régionale et réduire le taux de pauvreté du pays.

En outre, vu que le gouvernement rwandais détient 10% de parts du capital de la CIMERWA, le projet illustre parfaitement l’importance des partenariats public-privé en tant que vecteur de « financement intelligent » pour mettre à profit des fonds publics en faveur du développement du secteur privé. 

Le projet permettra également de montrer l’impact que le développement du secteur privé peut avoir en réduisant les contraintes auxquelles sont confrontés les secteurs stratégiques comme l’industrie manufacturière, laquelle est très liée aux activités du secteur de la construction. Tenant compte de la multiplication par sept de la capacité de l’usine, l’impact du projet sur le secteur de la manufacture sera considérable.

INDIA: UltraTech readies Rs 5,000-cr capacity expansion plan

MUMBAI: Ultratech Cement , India’s largest cement maker, has kick-started the next round of its capacity expansion which is likely to cost `5,000 crore, immediately after execution of its earlier plan of adding nearly 20 million tonne over the past four years. 

The Aditya Birla Group company has placed orders for two 3.3-million tonne kilns on KHD Humboldt Wedag of Germany as part of its plan to add 9.4-million tonne capacity by 2012-13, said a company official who did not wish to be named. The Aditya Birla group spokesperson declined to comment as the company was in the silent period ahead of the September quarter earnings announcement. 

These orders are for expansion at its Rawan plant in Chhattisgarh and Rajashree unit in Karnataka, Alchemy Share & Stock Brokers said in a note to its clients. 

The 52-million tonne company has already stated its plan to add 25 million tonne capacity over the next five years to maintain its market share. The Birla company has a 19% share of the `1,00,000 crore market, world’s second largest market after China. 

UltraTech has emerged as the single largest cement company in India with an annual cement capacity of 48.8 million tonne, thanks to the merger of the cement division of Grasim Industries with itself. It also has captive power of 504 MW. It recently bought the 3-million tonne ETA Star in Dubai. 

UltraTech’s closest rival Holcim Group’s ACC and Ambuja Cement with 30.6 million tonne and over 25 million tonne capacity, respectively, are yet to finalise and announce any further expansion plan. ACC has expanded its manufacturing capacity by nearly 10 million tonne in over 3 years, while Ambuja will be a 27-million tonne company by December-end against 18 million tonne in 2007. 

INDIA: ACC launches eco-friendly cement

ACC Ltd has launched an eco-friendly cement that offers protection against coastal climate.

Branded “Coastal +,” the cement is ideal for usage in foundations, roofing and all other sections being exposed to external environment, according to Mr Ramit Budhraja, Chief Executive, South West, ACC Ltd.

Launching the product here on Thursday, he said that the chlorides and sulphates in sea breeze and ground water attack concrete buildings and houses in coastal areas leading to a gradual weakening of the structures and reducing their overall life.

The concrete structures using Coastal+ has lower permeability resulting in higher protection from chloride and sulphate attacks and making them more durable.

Mr Budhraja said ACC would offer on-site tests like Rapid Chloride Penetration Test (RCPT) and Ultrasonic Pulse Velocity Test (UPVT) to ensure the durability of the concrete surfaces using the cement.

Other services

The company also offers a package of value-added services along with the product, like guidance on good construction practices, testing of ingredients at site, visits to the site at various stages of construction and basic proportion design for concrete.

He said the company operated a country-wide network of 17 help centres, a Web site and as many as 120 help vans, all under the umbrella of “ACC Help.” This was aimed at guiding individual home builders to ensure consumer satisfaction.

The product is being manufactured at the company's plant at Madukkarai near Coimbatore.

The plant has an installed annual capacity of one million tonnes, a part of which will be utilised for manufacturing “Coastal +.” The company is expecting sale of one lakh tonnes of the cement in the first year.

NIGERIA: Wapco Cement sees Q4 profit at 4 bln naira

- Lafarge Cement Wapco, the Nigerian unit of the world's biggest cement maker Lafarge, said on Thursday it expected fourth quarter pretax profit of 4.01 billion naira ($26.8 million).

It also said turnover for the three months to December was expected to hit 13.3 billion naira.

Lafarge Cement Wapco did not provide comparative figures for the same period last year. 

PAKISTAN: Absence of freight subsidy, low prices affecting cement exports

Karachi —The absence of freight subsidy, lower prices in the regional countries as well as transport bottlenecks due to standing flood water presenting a depressed picture of cement export from Pakistan.

Besides declining cement prices in the regional countries another major factor is the increased production capacity in the regional countries where a number of cement units have come on line, sources said. The lower cement prices in the regional countries also making the export outlook unfeasible especially for the cement industries located in the North zone of the country.

Sources were of the view that the prevailing transport bottlenecks will not be completely resolved in the near-term due to scale of damages to the road communication infrastructure. 

It is assumed that on a sequential basis, second quarter of the current financial year 2011 is likely to remain on the weak side yet there is silver lining is also visible regard demand recovery in the second half of the fiscal year when the reconstruction activity takes a kick start with the support of the private sector as well as international financial support for reconstruction of the damaged housing units and infrastructure.

The flood devastations it may be mentioned have resulted in a 22 percent drop in the total sales of cement in the country while exports suffered about 24 percent till September 2010.

The industry circles looking for a gradual recovery to the tune of 5 percent in demand growth during second half of the current fiscal which is being assumed on the expectations of private sector flood reconstruction activity post wheat harvest; partial mobilization of government, donor funds towards rehabilitation of flood affectees and re-building of infrastructure. However timing of reconstruction activities is uncertain so far. As far as cement demand was concerned market sources said that September 2010 was the single worst month of flooding. 

AFRICA: Portland Cement returns Sh292m full year loss

East Africa Portland Cement (EAPCC) has moved back to the loss-making territory citing rising production and administration costs as the main reason for the outcome.

The firm said it had made a Sh292 million loss in the year to June, compared to a profit of Sh1.8 billion in the same period a year earlier despite growing its revenues by Sh1.3 billion to Sh9.4 billion.

The gains were offset by additional costs of Sh2.2 billion—a signal that costs are running ahead of sales for the cement maker.

“The cost of sales went up 33 per cent mainly due to the increase in the prices of energy, raw materials and maintenance,” said EAPCC in a statement in reference to the losses.

Its rivals— Athi River Mining (ARM) and Bamburi Cement—managed to keep the costs in single digit over the period—putting the efficiency of EAPCC in the spotlight.

EAPCC announced a profit before tax of Sh434 million in the six months to December, 2009, compared to a loss of Sh489 million a year earlier—signalling that the performance of the second half contributed to the losses.

Former managing director John Nyambok left in June, with EAPCC chairman Mark ole Karbolo saying his exit was due to his failure to meet performance targets.

But Mr Nyambok said he resigned because the board failed to approve some of his strategies.

Analysts at African Alliance reckon that EAPCC’s cost per unit is higher than that of its rivals as it uses the more expensive fuel oil to drive its machines as opposed to coal—which is cheaper and less prone to erratic price fluctuations. Bamburi Cement and ARM use coal.

“Portland’s production system is inefficient compared to its rivals, especially on the energy component,” said Mr Francis Mwangi, an analyst at African Alliance, adding that energy costs accounts for about 45 per cent of EAPCC’s production expenditure, with rival firms spending less than 35 per cent on energy costs.

Oil executives say the price of fuel oil has risen by about 20 per cent when comparing the year ended June , 2009 ,and the year ended June 2010.

Coal prices—which are lower than crude—have remained almost the same over the period, according to ARM.

This means that EAPCC earned thin margins in a market that has seen the price of 50kg bag of cement fall 10 per cent this year following a price war.

EAPCC managed to grow sales on low prices but sacrificed margins unlike Bamburi, which lost market share and revenues as it was reluctant to cut prices by huge margins.

Bamburi Cement saw its sales drop to Sh13 billion from Sh16.2 billion in the six months to June—leading to a 23 per cent drop in profits.

EGYPT: Open export cement .. Egyptian exploitation for the benefit of foreign

The cost per ton sold 250 to 500 pounds.

The decision of the Ministry of Trade and Industry to allow the export of cement after a year and a half to stop questions about the beneficiaries of that decision, particularly as it came after a decline in demand for cement in the domestic market.

He revealed that the cement experts of foreign companies operating in the cement industry in Egypt because these industries are banned in Europe for the danger to the environment, and that employment in Egypt and cheaper energy prices low.

, "Said Ahmed El Zeny Chief, Division of Building Materials Chamber of Commerce in Cairo that the major foreign cement companies is the primary beneficiary and the latter from opening the door to export.

He explained that these companies prefer to export their surplus of cement - especially with the recession - that the lower prices so as not to reduce profits and make the local market in case of thirst.

He said: price per ton of cement in Egypt ranges between 500 to 550 Egyptian pounds and reach the level to 600 pounds, while the cement prices ranging from the world between 300 to 350 pounds only!.

He asked: How does this happen and employment we have cheaper and subsidized energy? He added: This is the exploitation of the Egyptian people by those companies who are making gains of up to billions.

He pointed out that Zainy cement companies will not be able to issue at a price higher than $ 60 a tonne, about 350 pounds per ton, however will sell locally at 500 pounds, and therefore will pay the Egyptian citizen is higher than the foreign importer about 150 pounds.

He said: I am against the principle of export obligation except in the case of those companies selling us the same prices, which are issued to the outside.

He added: We can not measure the recession list now how our use of cement, we are in 2009, we have produced 46 million tons of cement consumed in full, but we have imported them more than a million piece and the existing state of recession, not a measure may not find a surplus for use later.

Zainy said he does not import from abroad for the companies raised cement prices in the domestic market more than that. And wondered: Where the government's role in the control that

COLOMBIA: Argos y Venezuela llegarían pronto a un acuerdo

Bogotá.  Con la reactivación de las relaciones colombo-venezolanas, la cementera ve los primeros pasos para alcanzar una solución con respecto a la indemnización por expropiación de los activos propiedad de su filial Corporación Cemento Andino C.A.

Desde marzo de 2006 la empresa ha cursado los trámites legales del caso frente a las autoridades venezolanas a fin de establecer el reconocimiento de sus derechos.

La historia de Cementos Argos en el vecino país inició en 1997, cuando Cementos del Caribe S.A. le compró al Estado venezolano, los activos cementeros localizados en Llanadas de Monay, en el estado de Trujillo.

Para operar dichos activos Cementos del Caribe S.A. (hoy Cementos Argos) constituyó la Corporación Cemento Andino C.A. En el transcurso de los años y hasta que Argos operó su filial venezolana, se aumentó la capacidad hasta producir a 750.000 toneladas anuales de clinker.

Cronología

El 16 de julio de 1997 el Consejo de Ministros del Gobierno venezolano aprobó llevar a cabo el proceso de privatización de los bienes del complejo cementero ubicado en las llanadas de Monay en el estado Trujillo.

El 5 de diciembre de 1997 se realizó el acto público de presentación y selección de ofertas de los bienes del complejo cementero propiedad del Fondo de Inversiones de Venezuela, resultando favorecido el grupo Cementos del Caribe S.A. (hoy Cementos Argos S.A.).

El 8 de enero de 1998 el Fondo de Inversiones de Venezuela certifica el pago de 80.994.602 dólares recibidos de Cementos del Caribe S.A., pagando de contado los bienes del complejo cementero, activos que pasaron a ser propiedad de la Corporación de Cemento Andino C.A., constituida por el comprador para su debida operación.

Por orden judicial, el 13 marzo de 2006 la Corporación de Cemento Andino C.A. fue apartada de la administración de sus propiedades en Venezuela.

El 2 de agosto de 2007 la Asamblea Nacional declaró de utilidad pública las instalaciones del complejo cementero de las Llanadas de Monay.

Tras un proceso judicial, el 26 de marzo de 2009 el Tribunal Supremo de Justicia de Venezuela dicta sentencia reconociendo a la filial de Cementos Argos como propietario de los activos cementeros en cuestión. En la misma sentencia se da lugar a la expropiación decretada por la Asamblea Nacional.

Desde el fallo del 26 de marzo de 2009, Cementos Argos está esperando a que se lleven a cabo los trámites para fijar el valor y el pago de la indemnización correspondiente.

INDIA: Binani Industries announces delisting offer for Binani Cement Ltd

Binani Industries Ltd has announced that that the Board of Directors of the Company at the Board Meeting held on October 06, 2010, decided to acquire / purchase the entire public equity shareholding of its subsidiary, Binani Cement Ltd, by giving an exit opportunity to the public shareholders of Binani Cement Ltd in accordance with the SEBI (Delisting of Equity Shares) Regulations, 2009.

The stock was trading at Rs.121.45, up by Rs.11.40 or 10.36%. The stock hit an intraday high of Rs.127.70 and low of Rs.110.

The total traded quantity was 2.71 lakhs compared to 2 week average of 0.36 lakhs.

IRAQ: Iraq allocates $ 670 million to build cement plants in Muthanna and Karbala

Begin within days building a cement factory in the area of Alvdop (20 km west of the city of Samawah, Al Muthanna province of Iraq), to produce one million tons annually, at a cost of $ 200 million. The plant Hoalthani of its kind in the province, as initiated the company «CNN BMW» Chinese establishing a cement plant Aldouh, through August (August) last, for the investor Iraqi Hatem Al Khawam a cost of $ 270 million, and a production capacity of about two million tons annually.

Officials in the county, said the two projects will contribute to the development of the cement industry, where, and revive its economy by attracting foreign capital, and providing job opportunities for their children.

The company «Lafarge» French cement plant received the Karbala (100 km south of Baghdad) in a ceremony at the plant this week in the presence of French officials. The Ministry of Industry and Minerals has signed a contract on April 28 (April) the past, with the French company and «pioneer» Iraq to rehabilitate the cement plant of Karbala and its operation, and purpose of the Compact which has a duration of 15 years, to increase the production plant of 300 thousand tons annually to 1.8 million during the 30 months.

The Deputy Chief Executive Officer of the company «Lafarge» Scattered Rowe, said the company has allocated 200 million dollars (about 236 billion dinars) as the value of investment of the plant, which contributes to reduce Iraq to import cement.

He added that the company will build a plant to generate electric power 45 MW, in addition to some investment land and sites surrounding the lab.

The cement plant consists of Karbala, the two produce cement resistor, and works the way dry, and was designed to produce 19.2 million tons - clinker, and two million tons of cement annually resistant. And is located at a distance of 90 km from the city of Karbala in a region rich in raw materials, cement industry, you need the resistor, such as limestone, gypsum and sand.

Iraq needs now to build two million housing units to address the worsening housing crisis, in addition to the extensive rehabilitation of the infrastructure, which increases the need to build new cement plants, and rehabilitation of many of the previous labs, in order to fill the need it.

PAKISTAN: CCP KEEPS PRICE COMPETITION HEALTHY FOR PAKISTAN’S CEMENT PRODUCERS

The effectiveness of the Competition Commission of Pakistan (CCP) has been proved by the stability in the cement prices at a lower level of Rs220 - 240 per bag.

The CCP, formed in October 2007, is a consultative group comprising businessmen, academia, civil society and media and agreed that there is a need to take action against anti-competitive practices affecting cement prices.

Over the past four years, cement prices have dropped to this level for a period of two to three weeks, but have mostly fluctuated between Rs280 - 380 per bag.

Sustained stability

This time, the stability of cement prices has lasted more than three months. So far, no members of the All Pakistan Cement Manufacturers Association have paid any fines, as the penalties to be imposed by the CCP are being challenged.

Positive action

At a recent CCP meeting, several attendees remarked that CCP’s presence has acted as a deterrent against anti-competitive behaviour. It has also been argued that the penalties levied on the cement manufacturers were unfair as better practices were now evident. Khalid Mirza, CCP Chairman, revealed that the organisation is authorised to impose penalties up to 15% of a company’s turnover if found guilty of cartelisation.

Ensuring that fair business practices are ubiquitous throughout Pakistan can only improve the nation’s economic credentials, as well as benefiting efficiencies, leading to lower production costs and ultimately, end product prices.