PARAGUAY: INC reactiva su horno de clínker después de ocho días de paro

Tras ocho días de paralización, la Industria Nacional del Cemento (INC) reactivó su horno refractario, que elabora el principal insumo del material de construcción: el clínker. Ayer se inició el calentamiento y desde hoy se procederá a la producción. La empresa Monte Alegre proveyó 6.500 metros cúbicos de fueloíl a la estatal y con esta carga se asegura la marcha del horno hasta mediados de noviembre.

Durante los 8 días de paro, se dejaron de producir 16.000 toneladas de clínker, equivalentes a 441.600 bolsas de cemento, con 15% de aditivos (como yeso, puzolana, etc.). 

Técnicos de la INC de la planta de Vallemí, donde se encuentra el horno de clínker, explicaron que durante el tiempo de paralización se realizaron mantenimientos en el tubo quemador, las pacas de la enfriadora y el molino y también se realizaron cambios en los rodamientos. 

De acuerdo con los datos de los operadores de la fábrica, desde las 6:00 de la mañana de ayer se inició la etapa de calentamiento, proceso que debe durar aproximadamente 24 horas. Eso significa que desde hoy se comenzará a alimentar el horno refractario para la producción diaria de 2.000 toneladas de clínker. 

Fueloíl para 40 días 

La reactivación del horno fue realizada tras la llegada de un cargamento de 3.000 metros cúbicos de fueloíl a la planta de la cementera. Una segunda barcaza con 3.500 metros cúbicos más está llegando entre hoy y mañana, con lo que se completará el suministro de 6.500 metros cúbicos proveídos por la empresa Monte Alegre, presidida por Conrado Hockle. 

La INC firmó contrato con la empresa de referencia en setiembre pasado, la que a su vez consiguió el combustible de Petrobras, Brasil. Además, Monte Alegre ya había proveído 9.500 metros cúbicos de fueloíl en agosto, que habían sido adquiridos de la estatal uruguaya ANCAP. 

Con el suministro actual de 6.500 metros cúbicos, la INC podrá producir clínker durante 40 días, es decir, tendrá stock hasta mediados de noviembre. 

Según datos de la empresa, se están realizando gestiones para conseguir una cantidad similar, de tal modo a llegar a fines de diciembre con una producción continuada y sin paro de horno por falta de fueloíl. 

La idea de las autoridades de la estatal es que Petropar sea la proveedora de fueloíl de INC desde el próximo año, por ser la empresa que por naturaleza tiene más experiencia y mejor infraestructura para el manejo de combustibles. 

Por eso, ambas empresas firmaron la semana pasada un convenio mediante el cual la petrolera se comprometió a suministrar un mínimo de 6.000 metros cúbicos de fueloíl al mes y un máximo de 9.000. 

Según había dicho el presidente de Petropar, Sergio Escobar, si hay una oferta conveniente y una empresa que pueda proveer, el suministro podría iniciarse incluso desde este diciembre.

SANTO DOMINGO: Cement makers caution on rising production costs

Santo Domingo.- The cement-making process is among the most expensive and difficult manufacturing activity, as from the quarry where the raw material is extracted until bagging is long and uninterrupted, 24 hours per day year-round.

The cement makers grouped in Adocem said the costs of consumables to make that product have more than doubled lately, mainly in aspects like electrical energy, fuels and local transport, which represent around a 60% of the total cost to produce on bag of cement.

Just the fuel for the furnace (coke) has tripled in price from US$40 per ton to US$140, which is what the cement makers must pay for that fuel.

Meanwhile demand for the product has been falling around 24% in a nearly uninterrupted manner compared with 2006, when 3.7 million tons were marketed, for which the industry estimates it would be slightly more than 2.8 million tons for yearend 2011.

ADOCEM president Osvaldo Oller said the country consumed around 1.8 million tons of cement to August. “Despite these conditions this hasn’t meant changes neither in the numerous investments which this productive process requires, in the accumulation of costs of the different consumables, nor a reduction of the funds that our industry invests within the national industrial sector.”

According to Adocem the cement makers have been exploring all possible measures to cut costs and remain competitive regarding the perspective of production costs continuing to increase.

In a statement, ADOCEM said as in other countries, Dominican Republic’s cement industry is intensive in capital and with a business structure of high dimensions to deal with the strong investments required to install and put into operation a cement factory. “ADOCEM is the organization which represents the cement producing sector in the country in a manner such that it becomes the facilitator for sustained development of construction, motoring the general interests for this productive activity.”

AFRICA: CONGO: Dangote’s $350m Congo Cement Plant Plans Production 2014

The Republic of Congo and Dangote Group have stated that the company’s cement project in the country would commence production in the year 2014.

Dangote Group recently extended its Pan-African cement investment to the Republic of Congo in Central Africa, with a $350 million Investment Agreement signed between the group and the Federal Government of Congo.

While President of Dangote Group, Aliko Dangote, signed the agreement on behalf of his company in Brazzaville, the Minister of Planning, Economy, Integration and Coordinator of the Economic Pole Mr. Pierre Moussa, the Minister of Industrial Development and Private Sector Promotion Mr. Rodolphe Adada, and the Minister of Mines and Geology, Mr. Pierre Oba, all endorsed the agreement on behalf of the Government of Congo.

Adada, who spoke on behalf of the government, hailed Dangote’s move to invest in the country and pledged full support of the government for the project. According to him, Dangote is a symbol of the emancipation of the African continent with this significant investment in to Congo.

“The Dangote project is important to our people and our economy as it enables us achieve President Denis Sassou Nguesso’s vision for a robust and diversified economy.

“The project will help the country significantly reduce the imports of cement and even enable us become a net exporter of cement while boosting economic growth, development, job creation and income generation”, he added.

“We are proud to have Dangote in Congo and it is a demonstration of an excellent relationship between the governments of the Federal Republic of Nigeria and the Republic of Congo,” he said.

Also speaking at the event, Dangote said the intention of the company in its foray into Congo was not just to make profit but also to further empower the people of Congo, create new jobs and wealth.

“We are committed to our business all over the world and Congo will be no exception. We are going to invest $350 million in the construction of a fully integrated cement factory with an installed capacity of 1.5 million metric tonnes per year within the next three years and transform Congo into a net exporter of cement,” Dangote said.

According to him, this investment would serve as a launch pad into other sectors of the Congolese economy.

The factory would be located in the territory of the administrative district of Bouenza in the southern part of the Republic of Congo. As a fully integrated plant the facility would process local limestone and other raw materials.

Dangote assured of a successful delivery of this project, which is one of many other successful projects in 14 other African countries, where the company has invested.

He said he believed that this investment would further strengthen the bilateral ties between both countries.

“This indeed, shows that Africa is gradually taking its destiny in its own hands rather than wait for investors from outside. Investment in the real sector of the economy is the only way that our continent can achieve the much desired accelerated growth and development that we have yearned for,” he said.

“The developmental challenges of Africa are quite tremendous. According to a report by the McKinsey Global Institute issued in June 2010, Africa requires at least $46 billion in spending annually to meet infrastructural needs.

“It is obvious that African governments alone cannot hope to meet this demand due to the various competing needs in other aspects of the economy. This is why private companies are needed to complement the government’s efforts. It is in this light that we have decided to invest in Cameroon,” Dangote explained.

“We are motivated to create an African success story because we believe that entrepreneurship, especially our own home-grown African entrepreneurship, holds the key to the future economic growth of the continent. The fact that Africa offers one of the highest returns on investment (ROI) in the world is an additional incentive for any discerning investor, who can take calculated risks,” he added.

Stressing his commitment to Corporate Social Responsibility (CSR) he noted that while Dangote Group was in the business of creating wealth primarily, they were also mindful of the need to touch the lives of people.

“As a company, we have always been conscious of the need to give a little of our profits back to the society as a guarantee for sustainable business success. This has been our guiding business philosophy. In all our host communities where we operate, we have a robust CSR strategy in place, for translating this philosophy into projects and actions that touch positively on the citizens,” Dangote noted.

“With the cooperation of our host communities, we will create employment opportunities and help small businesses to grow in Congo,” he assured.

He hinted that the long term ambition of his company is to develop 50 million metric tonnes of cement production and terminal capacity in Africa by 2015, stressing that they want to become a truly pan-African champion in the sector, capable of competing globally with the largest cement companies in the world.

“We quite understand the dynamics of doing business in Africa because we are Africans. We respect the people and their cultures anywhere we operate in Africa and for us this is an undeniable edge,” he said.

AFRICA: NIGERIA: Trains to lift 2,700 metric tonnes of cement per week

Nigeria - Few weeks from now, trains would be moving 2,700 metric tonnes of cement, the equivalent of about 81 trailer load of cement, across the country. The minister of transport, Senator Idris A. Umar, disclosed this at the weekend while flagging-off Lafarge Cement freight service at Ewekoro, Ogun State.

Represented by the Chairman Nigeria Railway Corporation Board Ambassador Ladan Shuni, the minister said that with the commencement of freight services by NRC, the pressure on the roads will reduce.

Lafarge is the first company to start hauling its product with trains following the return of freight services by the NRC. It lifts 600 metric tonnes to Ijoko and 150 metric tonnes to Agege per week.

With the formal flag-off, the Managing Director NRC Engr. Adeseyi Sijuwade said that additional 750 metric tonnes will be hauled to Ibadan weekly, adding that it will be followed with 600 metric tonnes to Ilorin and Oshogbo before the end of October.

He said that when the Kano-Jebba rail track is completed, the figure will improved to over 5000 metric tonnes as more cities in the north would be covered.

Speaking, the Managing Director and Chief Executive Officer of Lafarge WAPCO, Mr. Samy Abdelkader said his company will continue to partner with the Federal government in order to achieve the dream of self sufficiency and availability of cement in Nigeria.

He explained that the development is another way to demonstrate his company's support for the Federal government's policy of backward integration in the cement sub-sector.

He said: "Lafarge WAPCO is committed to making cement available to Nigerians at all times and this is why this partnership with the Nigerian Railway Corporation is very important to us. We are optimistic that the use of rail transport will go a long way to ensure that our products get to the final users in a safe, reliable and faster way."

THAILAND: Siam Cement, Thai Building-Material Makers Gain on Flood Demand

Siam Cement Pcl paced gains in shares of Thai construction-material producers on speculation demand will surge after the nation’s worst floods in more than half a century.

Siam Cement, the nation’s largest producer, climbed 5.5 percent to 290 baht at 11:42 a.m. local time, set for the highest close since Sept. 22. Siam City Cement Pcl, the second- biggest maker, rose 5.6 percent to 226 baht. Tipco Asphalt Pcl, the largest asphalt maker, surged 7.3 percent to 55.5 baht, set for the highest close since April 28.

“Investors are looking to buy shares of companies that will benefit from a jump in demand in the aftermath of the flooding,” Sasikorn Charoensuwan, head of research at Phillip Securities (Thailand) Pcl in Bangkok, said by phone today. “Home-improvement and building materials will be in great need as the damage from flooding has been quite severe.”

At least 269 people have been killed and 2.4 million displaced as a result of heavy monsoon rains that have deluged the country since July 25, the Department of Disaster Prevention and Mitigation said today.

Home Product Center Pcl, the country’s biggest home- improvement materials retailer, increased 3.4 percent to 9.25 baht, poised for a record close. Chonburi Concrete Product Pcl, a producer of concrete walls, blocks and products, advanced 4.5 percent to 2.34 baht.

INDIA: Slow demand, input cost mattered most to cement cos in Q2

Moneycontrol Bureau

Low price regime and sluggish demand from the real estate sector continues to squeeze toplines of cement companies even in the July-September quarter, say analysts. While the coal price rise is well known, most other raw material prices have been rising steadily for the past few quarters---making it difficult for the industry to return to profitability anytime soon.

Though cement despatches grew by around 8% on low base during the quarter under review, demand is yet to reflect strength. In addition to this, an increase in effective excise duty rates will lower cement manufacturers’ net price realisations by 2-4% feel industry experts.

With negative factors at play, the sector will see a revenue decline of around 12% quarter-on-quarter (Q-o-Q) and industry EBITDA is also likely to see a dip of around 40% as companies have not been able to enjoy pricing power as they did in the Jan-March quarter of FY11 when demand was higher.

Meanwhile, India has 290 million tones per annum (mtpa) cement-making capacity installed which is largely dominated by UltraTech , Grasim andJaiprakash Associates with a collective production of 122 mtpa

Take a look at what brokerages are saying about these cement companies’ performance duinrg the July-Sept quarter.

An analysis done by Sharekhan says that UltraTech is expected to post a decline of 1.4% in its volume on account of a sluggish demand. However, its revenue is estimated to increase by 19% supported by a strong growth in its realisations Y-o-Y. But cost inflation, in terms of an increase in coal prices and freight cost will partially offset the positive impact of the increase in the realisation. The brokerage further says on account of an increase in its interest and depreciation charges, JP Associates net profit is expected to decline by 64% Y-o-Y to Rs 41.4 crore. Grasim too will witness a sharp decline in its revenues and net profit by around 40% and 45% respectively.

Emkay Securities has maintained a neutral stance on the sector after taking into account factors such as high interest and depreciation cost coupled with sluggish demand and poor pricing power. The firm sees a downside of 4% in UltraTech from its current level of Rs 1,093 as there is a strong likelihood for the company to see an around 45% decline in EBITDA to Rs 654 each tonne

Angel Broking expects JP Associates to report disappointing performance on the top-line and bottom-line fronts. “Sales are expected to be flat on a y-o-y basis, however the bottom line is expected to be hampered due to higher interest costs,” states the brokerage.

INDIA: ACC opens world's largest cement plant

ACC Limited has announce that operations of its new project at Wadi II Plant in Karnataka have stabilized and commercial production is declared as commenced from May 1, 2011. The Wadi cement plant of ACC Limited, in India’s southern state of Karnataka, now enjoys the distinction of being the world’s largest cement plant. The company recently completed this challenging integrated cement project in Karnataka comprising an expanded clinkering line of 12,500 TPD at Wadi together with two satellite cement grinding plants manufacturing Portland Slag cement and flyash based Portland Pozzolana Cement. ACC faced numerous challenges to complete the project without disrupting operations of the existing plant. As the world’s largest kiln line, the commissioning of ACC Wadi marks it, as being among the most notable achievements of engineering excellence in the global cement industry.

ACC first set up a cement plant at Wadi in 1968. Then in 1978 the plant introduced the use of the energy efficient pre-calcinator technology from Mitsubishi for the first time in India.

PAKISTAN: Cement exports fall 6.2 per cent

Cement exports from the country witnessed negative growth of 6.2 per cent during the first two months of the current fiscal year. Cement exports from the country during July-August (2011-12) stood at $75.888 million as against the exports of $80.900 during the same period of last year, showing 6.2 per cent decrease, Federal Bureau of statistics reported. 

In terms of quantity, the cement exports, however decreased by 20.03 per cent during the period under review. As much as 1,371,866 metric tons of cement were exported during the first two months of current year as against the exports of 1,715,573 metric tons. 

On the other hand the cement exports during August 2011 registered decrease of 5.77 and 6.27 when compared to the exports of July 2011 and August 2010, respectively.

Cement Exports during August 2011 were recorded at $36.189 million against the exports of $39.072 million and 39.280 million in July 2011 and August 2010 respectively. In terms of quantity, the cement exports in August 2011 reduced by 5.94 per cent and 16.57 percent against the exports of July 2011 and August 2010 respectively, FBS reported. 

The figures revealed that as much as 664,930 metric tons of cement was exported during August 2011 against the exports of 706,936 metric tons in July 2011 and 796,994 metric tons in August 2010. 

On the other hand, the production of cement declined by 7.87 per cent during the month of July 2011 over the same month of last year. Cement production in July 2011 was 2,604,000 tonnes as compared to 2,414,000 tonnes during the same month of last year.

It is pertinent to mention here that cement is one of major industries of Pakistan and the country is rich in cement raw material. 

Pakistan cement industry has huge potential for export of cement to neighbouring countries like India, U.A.E, Afghanistan, Iraq an Russian States. 

The major markets of the Pakistani cement are African and Asian countries.

PAKISTAN: Cement industry gets back on track

he cement sector switched to a profit of Rs2.54 billion in financial year 2011 against a loss of Rs2.59 billion in fiscal 2010.

Sales volume declined but a 32% increase in prices was enough to push the industry into profits, said Summit Capital Research Analyst Muhammad Sarfraz Abbasi.

Sales revenue of cement manufacturers recorded an upsurge of 14% to Rs115.6 billion in fiscal 2011 against sales of Rs101.8 billion in fiscal 2010.

Summit Capital analysed 14 listed companies of the cement sector which account for around 89% of the total sector.

Main contributors to the growth were mid-cap companies including Kohat Cement, Pioneer Cement, Fauji Cement, Dewan Cement and Mustehkam Cement.

However, total industry sales declined by 8% to 31.36 million tons due to slowdown in domestic construction activity, added Abbasi.

Financial charges of the sector also increased sharply by 11% to Rs10.46 billion against Rs9.40 billion posted in the preceding year.

Coal prices likely to stay stable

The analysis revealed that average cost of sales stood at 84% of the sales with energy being the main contributor.

Coal prices in the international market have been on the rise since April 2009 when they stood at $68 per ton and then gradually peaked at $142 per ton in January 2011. Coal is a major energy source in cement manufacturing.

Selling price surges

Cement prices are constantly on the rise, according to industry data. In the northern part of the country, prices have increased by 31% to Rs417 per bag on a yearly basis whereas in the south prices have increased by 24%.

Impact of the increase in selling price is reflected in prices of cement stocks trading at the Karachi Stock Exchange (KSE) as Lucky Cement and Attock Cement outperformed the market by posting returns of 10.24% and 19.87%, respectively, in the last month compared with the benchmark KSE 100-share index rising only by 6.32%.

Outlook

The current financial year is looking good for the industry as margins are intact with rapidly increasing prices coupled with 58% higher allocation to the Public Sector Development Programme and reduced levies, said Abbasi.

Initiation of construction activities, especially in flood-affected areas, might prove to be another source of recovery in sales, he added.

ESPAÑA: El consumo de cemento cae un 13,3% hasta agosto

Según cifras de Oficemen, hasta el mes de agosto se han consumido 14,5 millones de toneladas de cemento, lo que representa una caída del 13,3% respecto al mismo periodo de 2010 y se han producido 15,7 millones de toneladas, un 12,4% menos que en los ocho primeros meses del pasado ejercicio.

Respecto al comercio exterior, las exportaciones son similares a las de 2010 alcanzando los 2,7 millones de toneladas, mientras que las importaciones han decrecido un 37,6% en el mismo periodo. 

En relación a los datos mensuales, en agosto se han consumido 1,7 millones de toneladas de cemento, lo que representa una caída del 16,5% respecto al mismo mes del año anterior, mientras que la bajada de producción ha sido del 23,5% con 1,8 millones de toneladas.

En el contexto actual y en opinión del director general de Oficemen, Aniceto Zaragoza, “habrá que esperar unos meses para conocer si la reducción del IVA que grava la compra de vivienda nueva impulsada por el Gobierno mejora los pésimos datos que estamos conociendo sobre la caída de la venta de vivienda, pero en cualquier caso, creemos que el periodo es insuficiente y que habría que ampliarlo por lo menos hasta 2012, más aún teniendo en cuenta la dramática reducción de la obra pública”.

ITALIA: Mario Doménico Bracci designado consejero delegado de FYM

Mario Doménico Bracci ha sido nombrado consejero delegado de Financiera y Minera (FYM), fabricante de cemento, hormigón y áridos, filial en España del Italcementi Group, sustituyendo a Jean-Yves Le Dreff, que asumirá nuevas responsabilidades en el grupo. Natural de Italia, es ingeniero industrial por la Universidad de Florencia, se incorporó a Italcementi Group en 1990 y ha ocupado en los últimos 16 años diversos cargos. Así, fue director general de Asia Cement –filial de Italcementi en Tailandia–, siendo el responsable de desarrollar el plan de expansión del grupo en Asia. En 2003, fue nombrado director de general de Interbulk, en Suiza, y, tres años antes, director operativo de servicios auxiliares de Essroc, la filial del mercado de cemento en Norteamérica.

Entre los retos del nuevo consejero delegado de FYM, se encuentra continuar adaptando la compañía al contexto de ralentización del sector de materiales de construcción, aprovechando al máximo las oportunidades del mercado, consolidando la oferta innovadora de soluciones constructivas y el compromiso con el desarrollo sostenible.

INDIA: Cement prices could go up, but earnings safe

Cement prices have been the talk of the industry for a very long time. South India prices tanked for the first time in two years this season. Recently, the price per bag of cement in the west zone of India dropped nearly Rs 5-10. With slow growth in infra and construction segment, and realty pack too seeing a downturn, will cement companu earnings be affected too badly? CNBC-TV18 catches up with VM Mohan, chief financial officer, India Cements , to get his view on the sector and his company performance in specific.

Speaking to the channel, he says that pricing remains stable in most markets now and the drop in the west was mere correction. Per bag of cement costs Rs 260-300 in South India. He however says that prices could go up in future, but India Cements is poised to make do with it, especially due to the current surplus and capacity addition.

“Low growth in Andhra Pradesh is affecting operating performance of the company,” says Mohan. He expects utilization to improve once the Telangana issue is resolved.

Currently, capacity utilization in South India stands at 65% for the cement companies, he says. 

Below is the edited transcript of the interview. Also watch the accompanying video.

Q: How have prices been this quarter for Indian Cements and generally what are the pricing trends in South India today?

A: Currently, the prices are quite okay. There have been no slippages and we have been maintaining prices; there have been no major increases as well. Going forward, we will be happy if we could maintain the margins and if we are able to pass on the cost increases that could take place, especially because of the current surplus that is available, and also the capacity that is likely to come on the pipeline.

Q: There were reports last week that prices in west India had gone up Rs 5-10 per bag, any such increase in South India? And what are the prices per bag compared to trading at in other parts of India?

A: In the west, there had been significant drop in prices which they are recovering now. They need to recover still more to catch up with levels that they were at couple of months ago. As far as South is concerned, there has been no retraction and we are just maintaining those price levels. It varies from market to market and it is from Rs 260 to Rs 300, depending upon the market.

Q: What are the demand conditions now like in South India because we keep hearing that even for companies such as yours, the capacity utilisation is no more than 60%?

A: Yes, you are right. The industry is operating around 65-70% levels. In the last pwo years, we have had one of the worst periods as far as demand is concerned. We have never seen two successive years of de-growth in this industry. For instance, Andhra has had negative growth of more than 20% last year and even year before last. South, as a whole, was pulled down because of Andhra’s negative growth.

We believe, going forward, there are few positives we are looking at. We have had a good monsoon during the current year. The Andhra base effect will come into play right now. Actually, what used to be selling close to about 1.8 million tonnes a month, it has come down to nearly 1 million tones now. We don’t believe it could go down further, unless something major hits the industry.

I am sure the Telangana issue will get addressed sooner than later, and we have seen two successive years of negative growth followed by a huge jump in demand. We believe the same thing is likely to happen in the coming two years. But as far as this year is concerned, we are just looking at possibly either flat or marginal growth in the South. The country as a whole, it could be about 5-6% growth.

Q: So where does that leave the supply-demand gap in Southern part of the country? I believe that 10 million tonnes could be added in capacity in this fiscal, would that lead to fair degree of oversupply still?

A: Oversupply is already there. We are just operating at 65-70% which is almost 30% lower than our capacity. So the additional capacities will marginally add up, but it will take a little time for new capacity to stabilise. By that time, we believe positive impacts on demand growth will come into play and this may get absorbed. So it may take a couple of years for the industry in South to reach reasonable utilisation levels.

Q: So with stable prices and flattish growth for the industry, where do you think that may lead revenue and profit potential for India Cements going forward into the next calendar year?

A: As we discussed, 70% is too low utilisation levels. Normally, we don’t give any guidance on the profitability numbers, but we are looking at flat volume levels for the current year, which is whatever we did during last year. The only positive is we have set up a capacity in Rajasthan and that will add up to our overall volume. Possibly, the group as a whole may end up between 10.5-11%, which is about 5-7% growth in terms of volumes for us.

Q: IPL did contribute a little to your revenues in the Q1. Any plans on that front going into the next calendar year in terms of monetising that asset?

A: We are not looking at monetising IPL at the moment. We see a great value in IPL franchise and are not looking at monetising at this juncture. Possibly, we may look at pushing to the next level, but certainly not monetising.