SOUTH KOREA: Bank run at Tongyang Securities cools since crisis

Fund withdrawals by Tongyang Securities Inc. customers have declined sharply since the immediate aftermath of its parent firm Tong Yang Group's default in September, amid a move underway to sell the brokerage arm, data showed Thursday.

The outstanding amount of deposits at Tongyang Securities stood at 2.3 trillion won (US$2.17 billion) at the end of November, equivalent to only 60 percent of the total it held in late September, according to the data by the Korea Investors Service Inc. (KIS).

Tongyang Securities is an affiliate of Tong Yang Group, South Korea's 38th-largest family-owned conglomerate currently undergoing debt restructuring after it failed to repay maturing debts.

The conglomerate, which originally started off as a cement manufacturer, filed for court receivership for five of its units in September, prompting a bank run by investors.

In October alone, Tongyang Securities customers pulled out a total of 1.46 trillion worth of funds, but the pace of withdrawals sharply slowed to 42.2 billion won in November, the data showed.

"The liquidity risk has certainly eased last month compared with September and October, but (the firm) is facing a massive amount of redemption payments in regards to the suits filed against it," said Ha Tae-kyung, a KIS researcher.

Tongyang Securities is estimated to have sold short-term debts tied to Tong Yang assets worth about 1.57 trillion won to individual investors, KIS data showed.

KIS projected the brokerage firm may need between 160 billion won and 630 billion won as redemption funds.

The Financial Supervisory Service (FSS), the financial watchdog investigating Tongyang Securities on suspected fraudulent sales of such debt instruments, said it has found evidence to prove the firm's negligence and intentional omissions in explaining potential risks to investors.

"We'll have the executives submit their explanations, but there were clearly cases of wrongful sales," Lee Dong-yeop, an FSS director in charge of the probe, told reporters at a briefing.

The FSS plans to finalize the investigation within the first half of next year, at which point the regulator will also have concluded the amount of compensation for the investors, he added.

Tongyang Securities, a mid-sized brokerage house with 15 trillion won in assets, has recently received court approval to find a buyer.

Among the possible bidders are KB Financial Group Inc., the second-largest banking firm in Korea, and Yuanta Securities Co. of Taiwan.

SOUTH KOREA: South Korean private equity fund Hahn & Co to pay $283M for Hanjin Shipping's bulk shipping unit

Hahn & Co will be paying $283 million or KRW 300 billion to acquire a stake in the bulk shipping company of Hanjin Shipping Co, Bloomberg reported. Hahn & Co is a private equity fund based in South Korea while Hanjin Shipping is the biggest sea cargo carrier in South Korea. The report said the stake sale is part of the carrier's plan to raise funds and reduce debt.

In an emailed statement to Bloomberg, Hanjin Shipping said the private equity firm will hold a 76% stake in the bulk carrier business while the rest of the stake will be owned by the Seoul-based cargo liner.

PAKISTAN: Cement sellers irked by ‘artificial’ supply shortage’

Cement retailers have complained that companies in Karachi are creating an artificial supply shortage that will result in a significant increase in prices in the coming weeks.

Contrary to these reports, cement companies deny any shortage in the country as there has been no significant change in supplies or sales, especially in Karachi.

However, a retailer said that the companies are restricting their sales for a week. “Cement companies, especially renowned brands, in Karachi are restricting their sales to retailers since last week,” a cement retailer told The Express Tribune, “This has led to shortages, which can increase the cement prices in the coming weeks.”

All Pakistan Cement Manufacturers Association (APCMA) Chairman Muhammad Ali Tabba, commenting on the reports, said there is no cement shortage anywhere in the country especially in Karachi where a large number of cement producers are functioning.

APCMA is a group of over one-and-a-half dozen cement producers that have often been accused of working as a cartel in the country.

Cement producers say that, an increase in cement prices is inevitable as they have to pass the burden of increased electricity rates onto their consumers. “Cement companies will have to pass on the price increase they have witnessed with the high rates of power and transportation,” added Tabba.

Company officials say cement prices will hover between Rs510-Rs520 per 50-kg bag depending on the cement brands.

When the government raised power rates for the industrial sectors in August, cement producers’ retaliated by stating they will gradually increase cement prices in coordination with high cement demand or sales.

Cement prices are on the rise but this time the trend of price increase is different. Average cement prices in the domestic market is surging constantly but, unlike preceding years, the magnitude of the price increase is not noticeably high.

For instance, cement prices on September 21, 2013 were Rs501 per 50-kg bag, Rs502 on October 24, Rs507 on November 7 and Rs512 on November 28, according to the data compiled by Pakistan Bureau of Statistics (PBS).

Summit Capital analyst Sarfraz Abbasi said, “Cement companies are increasing prices in the range of Rs2 to Rs5 per 50-kg bag a month unlike previous increases of Rs10-Rs15 at a given time.”

According to Abbasi, the average cement prices have been around Rs503 per bag in the first five months of the fiscal year 2014 against per bag price of Rs452 in the corresponding time period of the previous fiscal year showing an increase of 11% year on year.

“The unprecedented hike in the electricity tariff, rising fuel costs and freight rates have impacted the profitability of the cement companies and, thus cement prices will keep surging till the cement price per bag reaches to Rs520-Rs530 per bag,” said Abbasi.

PHILIPPINES: Lafarge acquires Harbour Centre lot

Following a meeting, Lafarge said its board of directors “authorized the purchase of land situated at the Manila Harbour Center as well as the cement silo, packhouse and other improvements situated on the land.”

“The purchase will give the company full control of the facility, which is currently using under lease agreement,” it added.

Lafarge also said the strategic location of the facility allows the company to easily dispatch its products, giving Metro Manila customers a more accessible pick-up point for cement purchases.

The cement maker is enjoying brisk demand on the back of private and government-led construction boom.

In January to September, Lafarge’s net income attributable to equity holders of the parent firm surged 53 percent to P3 billion from P1.95 billion. Its net sales jumped by a fifth to P17.85 billion from P14.64 billion a year ago due to higher volumes and improvement in the selling price.

Last May, the company’s board of directors approved an investment for a new mill at the Teresa plant that will produce 850,000 metric tons (MT) per year starting 2015.

For the first time, nationwide demand exceeded 16 million MT at 18.4 million MT last year, up 18 percent from 2011 due to a huge infrastructure backlog in the country.

The company has five cement plants, of which four are in Luzon, that produce a total of 7.7 million MT of cement per year.

Lafarge, formerly Republic Cement, was incorporated in 1955 to primarily engage in the manufacture, development and sale of cement, marble and all other kinds and classes of building materials.

MOROCCO: Cement sales up 29.7%

Cement sales in Morocco increased by 29.7 per cent in November 2013 compared to November 2012. However, on a year-to-date basis, sales continue to decline by 6.52 per cent. 

The fall in cement consumption has been attributed to several factors. The National Federation of Developers points out that the major factor impacting the sector is the lack of liquidity due to the banking crisis. The continued weakness in real estate demand and the slowdown in public works have affected the demand for cement in the country. Public works have been affected by a MAD15bn (US$1.8bn) cut in the government’s capital budget. 

In addition, following tight licensing in self-construction, there has been less building in this segment

Furthermore, since January 2013, taxes on sand and rebars as well as an increase in taxes on cement dating from the Finance Act 2012 have led to a slowdown in cement demand. As a result, the market is not expected to pick up in December 2013. 

When broken down by region Guelmim-Es-Smara recorded the largest decline in cement sales. During the Jan-Nov period, they fell 42.9 per cent from 250,343t to 143,021t YoY. Greater Casablanca, Morocco’s largest market saw a 9.8 per cent contraction to 1,987,000t over the period. At the other end of the spectrum, Doukkala-Abda noted a market expansion of 10.9 per cent to 981,133t.

INDONESIA: Bosowa Breaks Ground at New Project in Barru Amid Ongoing Expansion

Makassar-based conglomerate Bosowa Corporation on Thursday held a ground-breaking ceremony for a Rp 700-billion ($57.4-million) project to build a cement packing plant and some supporting facilities in Barru, South Sulawesi, the company said in a statement.

The ceremony was attended by Hatta Rajasa, coordinating minister for the economy, Bosowa founder Aksa Mahmud and chief executive Erwin Aksa.

Senior government officials for Barru and South Sulawesi were also present at the proceedings.

Erwin said the project would include a cement packing plant, a port and jetty as well as silos and warehouses.

“These facilities will serve as a hub to avoid queuing for ships that load or unload cement as well as producing clinker for exports. The clinker we produce will also distributed to milling plants in Bosowa and other islands in Indonesia,” said Erwin, Aksa’s eldest son.

The facilities in Barru — situated 107 kilometers from Makassar and 60 km from Maros, where Bosowa operates an integrated cement plant — there will be able to store up to 20,000 tons of cement and clinker, a raw material in cement making.

There will also be warehouses to store additives in for the cement making process such as gypsum and iron ore. The storage will also be able to accommodate coal.

Bosowa — whose businesses now cover 10 different sectors including automotive, cement, energy, property, logistics, infrastructure and finance — has aggressively boosted the scale of its cement business, its main revenue contributor.

On Saturday, it celebrated the commissioning of the second cement mill in Maros, which added 1.8 million tons per year to the group’s cement production capacity.

Bosowa owns Semen Bosowa Maros, which can now produce up to 4 million tons of cement from its two mills and an integrated cement facility, also in Maros.

Also on Saturday, Bosowa celebrated the commissioning of a plant to boost clinker production at its Maros facilities to 7,200 tons per day from 5,500.

The conglomerate spent Rp 1.1 trillion to boost cement and clinker production capacities in Maros.

Bosowa owns another cement-making unit, Semen Bosowa Indonesia, which operates a cement plant in Batam, Riau Islands Province.

Combined, Bosowa can now produce up to 5.3 million tons of cement per year.

Bosowa is currently building cement plants in other parts of Indonesia, including in Banyuwangi on the eastern tip of Java, and Cilegon in Banten.

BRASIL: CRECIMIENTO DE LAS VENTAS DE CEMENTO 2013

Las ventas de cemento en Brasil muestran crecimiento en lo que va del año, lo que es una señal de que la actividad de construcción puede estar repuntando en el país.

Las ventas en octubre alcanzaron las 6,5 millones de toneladas, lo que representa un 4,7% más que en el mismo mes del año 2012.

Las regiones Centro-oeste, Noreste y Sur fueron las que más compraron cemento, con alzas superiores a los 8% cada una en relación al octubre pasado.

El número acumulado del año muestra crecimiento en las ventas de un 2,4%, lo que significa ventas hasta el momento de 58,9 millones de toneladas.

KENYA: Kenyan cement firm takes on Nigerian giant

ARM Cement is set to build Kenya’s biggest plant in Kitui County, setting it up for a fight with Africa’s richest man Aliko Dangote who plans to open a $400 million plant in Kenya.

The Nairobi bourse-listed firm will raise up to $300 million to fund new plants including the planned unit in Kitui that will produce 8,000 tonnes of cement per day. This will make it the single largest cement factory in the country and places the unit ahead of the planned Dangote plant that will have a daily capacity of about 5,500 tonnes.

“We plan to start construction of the Kitui plant late next year. It is a major development for us,” Pradeep Paunrana, ARM’s chief executive told the Business Daily in an interview.

This will re-open the fight for Kitui mines, which three years ago locked Bamburi Cement and ARM in a court battle for control of a 180-square kilometre piece of land endowed with limestone.

The East Africa Portland Cement Company (EAPCC) has also directed its management to strike a deal with Kitui County to secure key raw materials to counter Dangote and local rivals.

“It was agreed that the board would take urgent steps to get in touch with the Kitui County officials and ensure that the raw materials reserves are secured and purchased by EAPCC,” said Portland’s board minutes seen by the Business Daily.

Kenya produced 4.7 million tonnes of cement last year, up from 2.8 tonnes in 2008, according to the Kenya National Bureau of Statistics.

Players expect double digit growth in coming years on the ongoing construction boom.

These are the numbers that have caught the eye of Dangote Cement and new entrants National Cement and Mombasa Cement as well as the established players who have announced expansion plans, deepening competition.

As a result, management of production costs is dominating the cement makers’ strategy sessions in an environment where prices have remained unchanged over the past two years. This is expected to turn Kitui into a battleground due to its huge limestone deposits and proximity to the Mui basin, which has large coal reserves.

The manufacture of cement involves mixing of clinker, a key raw material, and limestone or coral rock mainly from the Coast, with pozzolana, an ash-based product mainly found in the Rift Valley.

Most cement firms are also turning to coal to power their machines as opposed to expensive oil fuel, which is prone to price volatility. Kenya imports the bulk of its coal from South Africa.

Mr Paunrana say the firm will raise up to Ksh25.5 billion to fund the Kitui plant and other planned factories over the next five years.

The fund raising will be done through a mix of bank loans, corporate bonds and rights issues, said Mr Paunrana, adding that the cement maker’s board is yet to arrive at the share of debt and equity.

BENIN: Benin Nocibe mill produces first batch of cement

The Benin Nocibe works, a project led by Groupe Layousse of Ciments du Sahel and contracted to Sinoma International (Tianjin), has produced its first batch of qualified cement from mill No 1.

Installation of steel structure was started in April, followed by mechanical equipment in June and electrical equipment in August. The project was commissioned in October. In less than half a year, the project team overcame all difficulties and completed installation and commissioning works smoothly in preparation for the first batch of cement on 23 November 2013.

Following performance tests of cement mill No 1, the commissioning of mill No 2 will commence. On-site work will also focus on the installation of a clinker production line.

Benin president, Boni Yayi visited the plant in Onigbolo at the start of this month, stating that the Nocibe plant will play an active role in Benin's cement market and economic development.

TURKEY: OYAK Group orders three vertical roller mills from Pfeiffer

Bolu Cimento Sanayii AS, a member of the OYAK Group, has ordered three vertical roller mills from Gebr Pfeiffer SE for the new production line at its cement grinding plant in Kazan near Ankara. Installation of the mill will expand the existing plant into an integrated cement plant. Delivery of the mills is scheduled for mid-2014 and will boost the total number of Pfeiffer mills installed at OYAK Group cement plants to eight.

An MPS 4500 B with a drive power of 3150kW will be used for cement raw material grinding. The mill is guaranteed to produce 320t/hr at a product fineness of 12% residue on the 0.090mm screen.

Pet-coke and lignite will be ground in an MPS 225 BK vertical roller mill with a drive power of 400kW. The throughput rate of this mill when grinding pet-coke will be 20t/hr at a fineness of 3% residue on the 0.09mm screen and 35t/hr when processing lignite.

Bolu Cimento has also ordered an MPS 4500 BC mill with a drive power of 3300kW, which will yield 130t/hr of CEM I at a specific surface of 3900cm²/g acc. to Blaine.

JAMAICA: First shipment of clinker sent to Venezuela under Petrocaribe initiative

CARIBBEAN Cement Company will send its first clinker shipment to Venezuela tomorrow, as part of an agreement to supply 100,000 tonnes of the product over five months to the South American country.

Clinker, the intermediate product made in cement manufacturing, will be supplied to Pertigalete Venezuela. The US$8.5-million deal was facilitated under the compensation mechanism of the PetroCaribe Agreement, whereby the Government of Jamaica can service a loan of over US$2.4 billion from the South American country with exports.

After three years of negotiations between the cement company and the Governments of Jamaica and Venezuela, the firm will export 20,000 tonnes of clinker per month between December and April next year.

"This arrangement will afford the opportunity to pre- utilise our clinker manufacturing plant, improve our financial performance and bolster our sustainability as an iconic Jamaican institution," said Anthony Haynes, general manager of Carib Cement.

He said the company plans to continue negotiations to supply the product.

"We hope that this shipment represents the first of a sustainable agreement where we can supply products to Venezuela," he said in his remarks at the press conference to commemorate the first shipment at the Jamaica Gypsum and Quarries Pier yesterday.

Jamaica's total debt to Venezuela is about US$2.5 billion while the annual debt payment currently is about US$100 million per annum. So US$8.5 million is about eight per cent for the annual payment, said Wesley Hughes, CEO of the PetroCaribe Development Fund.

"We expect that this is just the first of many; if we have $20 million per annum from one company we can see that this is significant," he said.

The country has the potential to export up to US$100 million in products to Venezuela.

Carib Cement posted a net profit of $168.9 million for the third quarter ending September 30, 2013, compared to a $245-million loss over the same three months last year. The positive result was boosted by increased cement sales volumes in both local and export markets — up 18 per cent and 60 per cent respectively over year earlier levels — contributing to a 52 per cent jump in total revenue to $3.2 billion.

NIGERIA: DANGOTE CEMENT LIFTS MARKET TO N12.7TN

The week started on a positive note monday as the Nigerian Stock Exchange (NSE) All-Share Index rose 2.22 per cent to close at 39,685.34, compared with a marginal loss of 0.01 per cent on the last day of last week.

However, the 2.22 per cent jump yesterday was influenced by a 10 per cent rise in the share price of Dangote Cement Plc. The stock, which accounts for 27 per cent of the NSE market capitalisation, rose N20 to close at N220 per share, which is New Year high.

The DCP gain added N140 billion to the market capitalisation of the exchange and accounted for the 50 per cent of the N276 billion recorded yesterday. The market capitalisation rose from N12.427 trillion to N12.703 trillion.

 

While some market operators said the high demand for DCP’s shares is driven by speculative trading, others said some investors were attracted by the nine months results of the company where it recorded a growth of 36 per cent in profit.

The cement firm’s profit before tax (PBT) rose to N151.73 billion indicating an increase of N45 billion over N106.43 billion in 2012, while operating profit rose by 36.4 per cent to N156.89billion.

Revenue for the period under review went up by N64 billion or 28.7 per cent to N288.98 billion compared with N244.50 billion of the preceding year.

 

Commenting on the results, Group Managing Director, Dangote Cement, Devakumar Edwin, said demand for cement remains strong in Nigeria with company recording sales nearly 30 per cent higher than last year.

“As we predicted in July, the gas supply to Obajana was lower than desired during the third quarter and we are looking for additional sources of gas and other fuels such as coal to keep us fully supplied in the coming years.”

Apart from DCP that rose 10 per cent, other price gains appreciated between 0.12 per cent and 4.7 per cent. In all, there were 18 price gainers compared with 29 price losers.

GHANA: GHACEM should source 50% of raw materials locally

Government has tasked cement maker, GHACEM to source 50 percent of its raw material locally. 

This comes on the back of recent debates on promoting local content in Ghana.

GHACEM which produces about 60,000 tonnes of cement every week sources just about 25 percent of its raw materials in Ghana.

Deputy Finance Minister, Cassiel Ato Forson speaking at the presentation of the GHACEM’s dividend on Tuesday said the current quantity could be increased if a conscious effort is made at it.

He said: “I think you have to go beyond 50%. We think the raw materials are here. Inasmuch as we produce cement here in this country, I strongly feel that if the raw materials are here and they are competitive, we should tap into them, so we can give true meaning to local content so that our local owners of raw materials can also benefit from them.”

Meanwhile, Strategic and Corporate affairs manager of GHACEM, Dr George Dawson Amoah told Citi Business News, this could be a daunting task as the major problem is the availability of the raw material in Ghana.

“The raw materials; the major part is the clinker which is imported. I share the concern of the minister that we should move beyond the 25% raw material, but where is it available? Show us any deposit of limestone with appreciable quantity and quality, and we will go in for clinker production.”

“We have been searching but do not have. What we have now is what we are using as filler, which is about 25% and so we are still searching, if you find any let me know,” he added.

GHACEM on Tuesday made a presentation of GHC 3.6 million dividend to government through the ministry of Finance.

This brings to GHC 8.7 million total dividend paid to Government this year. Government holds about 5% stake in the cement maker.

MÉXICO: Caída de la demanda por cemento en 2013, caerá producción entre 5% y 6%

LA SEMANA PASADA Banxico que encabeza Agustín Carstens volvió a ajustar sus estimaciones de crecimiento para este 2013 con un rango inferior del 0.9%, congruente con la perspectiva de los expertos.

Se espera que la SHCP de Luis Videgaray haga lo propio, una vez que INEGI a cargo de Eduardo Sojo dé a conocer la próxima semana el dato de la evolución del PIB al tercer trimestre.

Ya sólo faltan 49 días para que termine el 2013 y ya muchos comienzan a hacer el conteo regresivo para que llegue a su fin este complicadísimo ejercicio, peor de lo que todo mundo esperaba.

Construcción o la venta de bienes de capital —el caso de camiones y tractocamiones— finalizarán con números negativos. Para muchos renglones será lluvia sobre mojado.

La Cámara de la Construcción (CMIC) que comanda Luis Zárateestimaba que para el último trimestre podría haber un repunte. Esto no se ha dado y es casi seguro que aún en enero y febrero del 2014 tampoco se presente. 

Otra industria que ha pagado los platos rotos es la del cemento, cuya demanda igual se ha precipitado. Hasta septiembre se habla de una baja del 18%, nada lejana al 27% que se tuvo en la gran crisis de 1995. 

Hay varios factores que explican esta situación. De entrada la lentitud por parte del gobierno de EnriquePeña Nieto para detonar los grandes proyectos de infraestructura.

Aunque en su momento se habló de 400 mil millones de dólares para el sexenio, en la práctica sólo se ha presentado el compromiso para comunicaciones y transportes.

La vivienda que en los sexenios de Vicente Fox y Felipe Calderónfueron un motor, en este año en el mejor de los casos alcanzará un tren de unas 350 mil casas nuevas.

El poder de compra por su parte, está por los suelos, ya que el mercado interno está contraído, lo mismo que las inversiones y el empleo.

En el negocio del cemento hay que recordar que 75% de la demanda se genera al menudeo, o sea a granel, y el motor es la vivienda tanto formal como informal.

Se cree que la demanda podría cerrar el año con una caída cercana al 15%, máxime porque viene diciembre que es bajo para esa actividad.

De ahí que el entorno para firmas como Cemex de Lorenzo Zambrano, Holcim que dirige EduardoKretschmer, Cruz Azul de Guillermo Álvarez, Moctezuma que comanda Pedro Carranza, Cementos de Chihuahua que lleva Manuel Milán y Fortaleza a cargo de Antonio Taracena no sea el mejor.

Hasta agosto la producción de cemento gris en el país, conforme a datos de la Cámara Nacional del Cemento (Canacem) que lleva Osmín Rendón, sumaba apenas 23.3 millones de toneladas contra 24.5 millones del mismo lapso del año pasado, lo que significó una baja del 5%.

De hecho si comparamos año con año, el mercado de cemento se ha mantenido muy estancado. En 2009 la producción fue de 36.1 millones de toneladas, cifra casi similar a la del 2012, que ahora ni siquiera se podrá alcanzar, puesto que se calcula una baja anual de entre 5% y 6%.

En ese sentido la producción estará en un nivel menor al del 2009 cuando el PIB de la economía fue negativo.

Vale señalar que la industria cementera con 35 plantas distribuidas en todo el país tiene una capacidad instalada de 57 millones de toneladas que hoy obviamente no se aprovecha al 100%, situación reveladora de la difícil fase que atraviesa México desde hace tiempo.

Para el 2014 agregue el golpe que significará para el consumo y muchas actividades económicas la reciente miscelánea fiscal.

Si bien muchos analistas estiman que el gasto público debería ser un amortiguador, la verdad es que en la práctica dicho efecto está por verse, considerando que la eficacia de muchas partidas no siempre es la mejor.

Por lo pronto la realidad se impone y el rubro del cemento constituye un inmejorable indicador de lo que hoy sucede en nuestra economía.

BOLIVIA: Cemento Peruano en ventas móviles en Bolivia

 Ante la escasez de cemento que existe en Santa Cruz, Insumos Bolivia realizará la venta de este producto en puntos móviles. El cemento ofertado es de la marca Yura S.A., que proviene de Perú.

Las ventas móviles, que comenzaron durante el pasado fin de semana en la zona del Plan Tres Mil, continuarán y llegarán a zonas como la Villa Primero de Mayo y Pampa de la Isla. La hora y el día serán anunciados en cada jornada para evitar que comerciantes acaparen el producto y lo revendan a mayor costo.

Jackeline Saavedra, representante de Insumos Bolivia, explicó que por tratarse de una determinación que busca beneficiar más a las familias que llevan adelante la edificación de sus viviendas, solo en este caso la venta se limitará a un máximo de 10 bolsas por persona.

En el caso de las empresas que requieran el producto, deben presentar una copia del contrato de obra y firmar un documento de compromiso de no revender el producto, medidas que solo se aplican cuando el pedido es grande y buscan evitar que caiga en manos de los especuladores.

Saavedra indicó además, que tanto en la agencia de Insumos Bolivia, como en las ventas móviles, el precio es facturado.

Días atrás, el presidente de la Cámara Boliviana de la Construcción (Caboco), Christian Eduardo, sostuvo que la actual escasez de cemento se debe a la elevada demanda del insumo por época alta y a algunos problemas que presentó la fábrica de cemento Fancesa, principal proveedor de Santa Cruz.

A partir del mes de octubre de cada año, la demanda por este producto comienza a crecer en el departamento haciendo que las personas tengan inclusive que dormir en las agencias.

THAILAND: SCCC prosper in 2014, with continuous capacity expansion

- Bright long-run outlook with B3bn investment budget ready

Although the government-supported mega infrastructure projects have been delayed by the current political instability, the plans would proceed after the general election next year as they all are essential for the country's development. SCCC holds a positive outlook toward the cement business in 2014, believing a cement demand to grow 5%, while increasing demand for cement during the past year has helped increase cement selling price. In terms of cost, SCCC has made a forward contract for 80% of its coal purchase for using in 2014 at a 10% lower price than 2013, so the company would be able to keep its profit margin good despite a rise in electricity fee, the main cost.

For the future growth, SCCC has set a budget of Bt3-4bn; Bt1.5bn of which will be used for annual maintenance while the rest will be used for expanding capacity of its ready-mixed concrete and super block factories and improving efficiency of existing plants.

- Cement kiln maintenance shutdown to affect 4Q13 profit

As SCCC had to run its four cement kilns at their full capacity in 9M13 to support growing demands, the maintenance shutdown has been postponed to 4Q13, which is a low season of the business. At the same time, the reopening of the cement kiln#1 that had been closed since 2008 could proceed as planned; the test run has just finished and a commercial run can be expected in 2014. After the cement kiln#1 resumes, SCCC's clinker's production will increase by 1.5 million tons/year. However, some of the test run expense will be booked in 4Q13, so the gross margin might decrease significantly from the prior quarter. Nevertheless, 5% rising domestic cement selling price since the beginning of the year will help generate profit growth, comparing to Bt756m in 4Q12.

- Current share price has 19% upside. 

With the strong business growth and continuous investment, we estimate SCCC's profit at Bt6,038m in FY2014 or the growth of 15%yoy. 2014 fair value, at 18x PER, is Bt473m, implying 19% upside from the current share price, while there will also be a dividend yield of around 4%.

ESPAÑA: El consumo de cemento baja a niveles de 1.962

El consumo de cemento en España está por los suelos. La crisis económica e inmobiliaria se lo ha llevado por delante. Tanto es así, que el consumo de cemento está en niveles de 1962. Según datos de Oficemen, su uso ha caído un 80% desde los máximos de 2007. 

La agrupación de fabricantes de cemento calcula que, desde los máximos de 2007, con ese recorte del 80% el consumo se ha situado por debajo de los 11 millones de toneladas este año. De cara a 2014, la demanda doméstica se situará en torno a 10 millones de toneladas y el consumo per cápita a 220 kg por habitante, una cifra que se remonta a los datos de 1962 y sitúa a España por debajo de Marruecos y cerca de los valores de India.

Prevé Oficemen que el cemento encadenará en 2013 su sexto año consecutivo de caídas de doble dígito, en concreto un 20%, una tendencia que también se dejará notar el próximo año, cuando se prevé un descenso de entre el 7-8%, para empezar a crecer en 2015. 

Por destino, el consumo de cemento se dedicó en un 57% a la obra civil, el 24% a la edificación no residencial –que ha repuntado ligeramente en los últimos meses– y el 19% a vivienda. Además, un 25% de la energía que consumieron los hornos de las fábricas en España procedió de residuos. 

Por lo que respecta a las exportaciones de la Unión Europea, España alcanzó el 18 % del total, y casi el 26% de las ventas del país al exterior fueron a estados no comunitarios. 

La agrupación de fabricantes de cemento en España reclama unos costes eléctricos competitivos que no limiten las exportaciones de la industria cementera, así como una retribución por el servicio de interrumpibilidad del entorno de los 15-20 millones para el próximo año a tenor de que el conjunto de las reformas energéticas han supuesto un impacto aproximado de 50 millones para el sector. 

Y es que, subrayan desde Oficemen, actualmente y para 2014 el diferencial de precios de España respecto a Alemania se encuentra en el 15-30 euros/MWh, lo que equivale a un encarecimiento de entre 1,5 y 3 euros por cada tonelada de cemento. 21 fábricas, entre ellas algunas cementeras, se han visto obligadas a parar su actividad.

ZAMBIA: Dangote US50m power plant

DANGOTE Group will in the first quarter of next year commission a US$50 million power plant that will supply 30 Mega Watts (MW) of electricity to its multi-million dollar cement factory currently under construction in Ndola.

Company senior general manager in charge of projects, Anand Kameshwar, said construction works on the project were progressing well and the power plant would start functioning by the end of the first quarter of 2014.

He said this would be before the cement manufacturing factory is fully operational in July, 2014.

“The 30 MW power plant at a cost of $50 million, is currently under the construction stage and works are going on well.

“This plant is intended at making its own power available to the cement plant as opposed to connecting to the usually overloaded national grid,” he said.

Dangote, one of Africa’s largest conglomerates, has invested $400 million in setting up a 3,000 tonne cement plant on the outskirts of Ndola.

Mr Kameshwar said on this project, machinery has already been installed and construction works are on schedule.

“Major equipment is being installed and works are progressing as scheduled and by mid next year, the plant should be operational,” he said.

Mr Kameshwar said initially, the plant would start operating at a capacity of 3,000 tonnes per day, though this will increase steadily in the long-term.

The Dangote factory will be the third such establishment to be operational in Ndola alongside similar plants currently run by Zambezi Portland and Lafarge cement.

CABO VERDE: Empresa chinesa vai construir porto de águas profundas

A empresa China Road & Bridge Corporation (CRBC) vai construir um porto de águas profundas e um terminal de cruzeiros e reparar os estaleiros da Cabnave na ilha cabo-verdiana de São Vicente, anunciou na cidade da Praia a administração da empresa.

O anúncio foi feito no final de visitas ao presidente e ao primeiro-ministro de Cabo Verde, Jorge Carlos Fonseca e José Maria Neves, respectivamente, nas quais foram apresentados os planos de reestruturação do porto do Mindelo e de reconversão do principal estaleiro de reparação naval do arquipélago.

A administração da China Road & Bridge Corporation, especializada em obras marítimas, indicou também ter sob sua responsabilidade a construção de várias infra-estruturas ligadas à economia marítima, “muito importantes” para a dinamização da economia da ilha de Porto Grande.

Sem avançar datas concretas para o arranque das obras nem os custos a elas associados, a empresa garantiu a “qualidade e eficiência” dos projectos, integrados no “Agrupamento do Mar” defendido pelo governo cabo-verdiano para transformar o Mindelo numa plataforma marítima logística no meio do oceano Atlântico.

O porto de águas profundas, um sonho que as autoridades cabo-verdianas mantêm desde a independência, em 1975, irá ajudar a fomentar o negócio de reparação naval e de apoio às frotas pesqueiras internacionais, prevendo-se também a instalação de um centro internacional de pescas.

Projectado para funcionar como centro de excelência em segurança marítima e investigação oceanográfica, o porto de águas profundas do Mindelo irá concorrer directamente com os de Dacar (Senegal) e de Las Palmas (Canárias, Espanha), quer a nível de preços, quer nas facilidades e serviços portuários.

GHANA: Ghacem donates 16,000 bags of cement to northern Ghana

About 137 health and educational institutions in deprived communities in northern Ghana have taken delivery of 16,000 bags of cement from the Ghacem Cement Foundation (GCF) to aid their infrastructural development.

The beneficiary schools and hospitals were drawn from the Upper East, Upper West, Northern, Ashanti and Brong Ahafo regions.

The donation is the last of two  carried out by the foundation this year.

The Western, Central, Greater Accra, Eastern and Volta regions form the southern sector of the country and they received the first donation of free cement under the Ghacem Cement Foundation as an annual benevolence from GHACEM.

Present at the ceremony were top council members of the Ghacem Cement Foundation (GCF), including the Chairman, Nana Prah Agyensaim VI; Dr George Dawson-Ahmoah, Secretary to the foundation, who is also the Strategy and Corporate Affairs Director of Ghacem, and Professor Audrey Gadzekpo (Member).

Delivering his welcome address, Dr Dawson-Ahmoah commended the beneficiaries for their faith in the company, which made them apply for the free cement, stressing that such commitment had the impetus of bringing development to their area.

The Managing Director of Ghacem, Mr Morten Gade, in a keynote address, said it was the objective of the Ghacem Cement Foundation to support self-help initiatives to speed up the development of the country. 

According to him, the board and directors of the company had outlined two areas where its corporate social responsibility programmes were targeted and that the GCF was one of them, aimed at assisting health and educational institutions in deprived areas of the country.

“The second area is developing the community  in which we operate and perform our mining activities, and I am happy to announce that the company this year  opened a clinic and two educational facilities worth GH¢646,000 in the Lower Manya and the Yilo Krobo districts in the Eastern Region, where the company mines limestone for its cement production,” he said.

Nana Prah Agyensaim said that the GCF had, since its inception 12 years ago, distributed about 400,000 bags of cement, valued at GH¢6.5 million freely to deprived communities.

He said such a gesture was a true demonstration of the company’s commitment to develop Ghana.

TANZANIA: Mbeya Cement new bag filter.

MBEYA Cement Lafarge Tanzania has inaugurated its new ultra modern Bag Filter that significantly reduces the
stack emissions to meet the national and international standards.

The new ultra modern bag filter inaugurated last Friday at Songwe in Mbeya reduces the stack emissions to
10mg/nm3 which is lower than the 2013 Tanzania Environmental Regulations of 50mg/nm3 and is in line with
the Lafarge Industrial targets as well as the Global Environmental Standards.

Speaking during the inauguration ceremony of the Bag Filter held at Songwe in Mbeya, the Mbeya Cement
Lafarge Tanzania Chief Executive Officer, Catherine Langrency said the company has invested 1.5 million
EURO (3bn/-) in this project.

"The inauguration of this bag filter further underlines Lafarge Tanzania’s commitment to continuous
improvement plan and part of the Lafarge Group Sustainability Ambition 2020, which is to have responsible and
environmentally friendly operations," Langrency said.

Langrency said that Lafarge has adopted the Bag Filter technology to ensure that power interruptions do not
damage the filtering system. ‘We are working with NEMC, communities around us and our stakeholders to
improve environmental conditions and lead in the cement industry in Tanzania on environmental excellence,’
said Langrency.

The inauguration ceremony was officiated by Deputy Permanent Secretary in the Ministry of Industry, Trade and
Marketing Maria Bilia, on behalf of minister, Dr Abdallah Kigoda, who commended Mbeya Cement Lafarge
Tanzania for the milestone achievement and urged Tanzanians to cultivate the culture of supporting local
manufacturers by buying and utilising their products.

"This will help create more employment for our people," she said. The Mbeya Cement Lafarge Tanzania CEO
said that the building material company yearns to increase its overall cement manufacturing capacity to 700,000
tonnes per year by adding a new cement mill, a clinker line upgrade and a new packing plant.
The project which will be completed in the second quarter of 2015, marks the 1st phase of the company’s
expansion ambition in Tanzania and will have minimal disruptions to the production process to ensure that
customers are not affected during the project implementation.

“This will increase the cement production capacity, enabling us to successfully contribute to meeting the
growing demand for cement products, offers and solutions to address issues of housing for all including
affordable housing’, she said.

She noted that by widening the product portfolio and improving its overall production process through the
investment, Lafarge Tanzania will also be able to better support the growth of the mining sector in East/South
East Tanzania and infrastructure projects such as roads and ports

VIETNAM: Cement exports 14m tonnes in 2013

Viet Nam's cement exports are expected to reach nearly 14 million tonnes in 2013, the highest level ever exported.

According to the Industry and Trade newspaper, in the first 11 months of this year the country exported 12.5 million tonnes of cement, a year-on-year surge of nearly 65 per cent.

Southeast Asia and the Middle East are the two main markets for Viet Nam's cement, while Malaysia and Indonesia are the nation's largest importers of cement in the Southeast Asian region.

Meanwhile, the country's domestic consumption of cement reached nearly 43 million tonnes in the first 11 months of 2013, up more than 10 per cent year-on-year.

This year, Viet Nam expects to sell more than 60 million tonnes of cement at home and abroad.

INDIA: Ultra Tech Cement Ltd. signs MoU for 2 cement plants

Uttarakhand's industrial development department on Wednesday signed a memorandum of understating (MoU) with Ultra Tech Cement Ltd to soon commission two manufacturing plants — at Tyuni town in Dehradun district and Someshwar town in Almora district.
Chief minister Vijay Bahguna said Ultra Tech Cement Ltd will invest Rs 5,000 crore in a phased manner in setting up the cement-manufacturing plants in the Garhwal and Kumaon divisions.

He said the company will commission a cement plant with 3.5 million tonne annual manufacturing capacity at Tyuni near Chakrata, 100 km from Dehradun, and a 2 million tonne annual manufacturing capacity plant at Someshwar. The chief minister said the process to finalize the land to commission the two plants in these two districts is still on.

"The setting up of these two major plants in the field of cement manufacturing, in these two socially and economically backward towns, will considerably help provide jobs to several jobless youths and other residents in these areas, apart from opening venues for other side business," said Bahuguna.

A senior IAS officer in Dehradun said the MoUwas signed between Ultra Tech Cement Ltd director R M Gupta and state additional secretary Rakesh Sharma in New Delhi.

Sharma, head of the state's industrial development department, told reporters the cement manufacturer will have to adhere to all environment-related norms while commissioning the plants. "The objective will be to ensure that the overall environment in the region is kept intact at any cost while setting up these two cement-manufacturing plants," Sharma said.

NIGERIA: NEW HIGH-STRENGHT CEMENT

UNICEM, Nigeria’s third largest cement producer, at the weekend launched its new high-strength cement into the Port Harcourt construction industry, a product said to be deployable for heavy construction works.

According to Vipul Agrawal, the company’s marketing and technical

assistance director, the new product, called “UniCem 42,5N Limestone Portland cement” is produced for specialised heavy construction works like high-rise buildings, long-span bridges, dams, fly-over, and silos.

Agrawal said UniCem went into production of the new cement, based on expectations and needs of customers like the construction companies into roads construction and precast infrastructure.

“We have developed the high strength performance cement (UniCem 45,5N) to take care of 10 percent of our customers needing this quality of cement for infrastructural development in our core market.

“The UniCem 42,5N is a versatile cement with many benefits such as: high and ultimate compressive strength, low heat of hydration (reduced cracking), workability, reduced bleeding, reduced porosity (enhanced strength), improved cohesion, smooth surface finish and has environmental friendliness (less CO2 emission),” he said.

He said for the past eight years, UniCem has produced and sold the UniCem 35,5R Portland Limestone cement; and has now faced a growing demand of high strength performance cement product by construction companies; which prompted a research into the product to meet these set of customers.

The product, which was launched at the Hotel Presidential, Port Harcourt, was witnessed by some major construction companies such as: Lubrik, Julius Berger Nigeria, Setraco, Alcon, Lafarge Ready Mix Concrete, Deux Project, Trans Ocean Limited, O.K Isokarari, among others.

Some building and civil engineering experts also said the new cement comes off as UniCem’s positive answer for provision of cement product that would meet a growing advocacy for use of cement-based products in building of motorways and other long-span infrastructures in Nigeria.

The UniCem marketing and technical assistance director told BusinessDay on the sidelines of the product launch that the 42,5N cement combines strength and performance at all ages with enhanced durability and environmental benefits; with a product specification of ‘CEM II/A-L 42,5N Portland limestone cement that conforms to the Nigerian Industrial Standards, NIS 444.1:2003 as equivalent to European Union’s internationally accepted EN 197-1-2000.

He informed that UniCem has a modern state-if-the-art 2.5 million metric tons per capacity integrated cement plant at Mfamosing, Cross River State; and would hit 2 million in production capacity by year-end; with an expansion work to further deliver 5 million metric tons per annum in three years.

IRAN: CEMENT MARKET RISES

The Iranian cement industry’s output stood at 50.25 million t in the first eight months of the current fiscal year (starting 21 March 2013), a 2.2% y/y increase compared with 49.16 million t in 2012.

During the first eight months, clinker output saw a 3.5% increase y/y, reaching 49.26 million t, compared to 47.59 million t in the same period in 2012. Cement and clinker production was reported to have reached 5.65 million t and 5.96 million t, respectively, from 23 October – 21 November. Around 39.83 million t of cement was supplied to the domestic market during the first eight months of the current fiscal year.

Iran is the top producer of cement and has the largest amount of exports in the Middle East, manufacturing 27 types of cement. The country exported cement to 24 different countries over the past fiscal year including Iraq, Azerbaijan, Turkmenistan, Afghanistan, Russia, Kazakhstan, Kuwait, Pakistan, Qatar, Turkey, the UAE, Georgia, Oman, India and China. The outlook for the Iranian cement industry is bright due to the country’s availability of raw materials, a skilled workforce, high quality cement and low prices. The former Iranian Industry, Mine and Trade Minister, Mehdi Ghazanfari, stated in August 2012 that the country's cement production capacity is predicted to reach 110 million tpa by 2015.

DOMINICAN REP.: Venta de cemento experimentó un significativo incremento de un 16 %

La Asociación Dominicana de Productores de Cemento Portland (ADOCEM), destacó con satisfacción el desempeño exhibido por la industria en el año 2013 durante el cual experimentó una interesante evolución que alcanzó aproximadamente 2.9 millones de toneladas vendidas.

"En contraste con las ventas del 2012 esto supone un significativo incremento de alrededor de un 16 % rompiendo con la ruta descendiente que desde el 2007 hemos venimos experimentando", expresó Carlos González, presidente de ADOCEM.

A su juicio, los resultados positivos que refleja el sector responden a varios factores entre los que sobresalen los esfuerzos emprendidos por el Estado Dominicano para dinamizar la economía a través de iniciativas novedosas que inyectan movimiento en todas las regiones del país. Citó como ejemplo el Programa Nacional de Edificaciones Escolares que implica la construcción de 28 mil aulas nuevas, cuyas compras de materiales son efectuadas en las ferreterías locales y a su vez las obras son dirigidas por los ingenieros de cada comunidad.

Las consideraciones de Carlos González, presidente de ADOCEM, fueron expuestas a raíz de encabezar un encuentro-coctel de navidad en honor de su membresía y relacionados, en el transcurso del cual evaluó el desempeño mostrado por la industria del cemento en el cursante año, y delineo las perspectivas del próximo año 2014.

De igual manera, el economista y consultor José Luis De Ramón, abordó de manera ampliada los augurios económicos del panorama nacional para el 2014.

En su intervención, el presidente de ADOCEM señaló como un elemento dinamizador de la demanda local de cemento, la caída de los precios del producto como resultado de un proceso natural de mercado que fruto de un exceso de capacidad productiva como es el caso de República Dominicana; "Nuestra capacidad instalada supera los 6 millones de toneladas, lo que significa un excedente de capacidad cercano al 60 %", indicó.

Añadió que esta situación es poco común y dado el tamaño de nuestra isla hace que seamos el país con mayor capacidad de producción de cemento per cápita de todo el continente americano, por encima de grandes productores como México, Brasil y Colombia.

De igual manera, González citó el caso de la Ley de Desarrollo de Mercado Hipotecario y Fideicomiso, que si bien es conocido que impactará notablemente la construcción, la industria, la minería, el transporte y el comercio, dicha legislación no termina de rendir los frutos esperados, sobre todo en lo relativo a la vivienda social pues existe una especie de "letargo" que impide hacer viable la aplicación de esta ley en el corto plazo.

Manifestó asimismo, el entusiasmo del sector ante el hecho de haber superado la colocación de apenas 15,000 m2 de pavimentos en concreto en el 2012, a aproximadamente unos 150,000 m2 en lo que va de este año. "Sin embargo esperamos dar el gran salto cuando el Ministerio de Obras Públicas (MOPC) decida darle la oportunidad al cemento como alternativa de pavimentación", indicó.
"Como les dije, continuamos siendo optimistas, hoy día estamos en una excelente posición para impulsar y aprovechar el formidable potencial que vemos para el cemento, y por tanto durante todo el 2013 invertimos en impulsar las innumerables cualidades y usos de nuestros productos como lo es, la posible incorporación del concreto en carreteras y del suelo cemento para caminos vecinales, como alternativas de pavimentación", apuntó González.

Finalmente, exhortó a seguir trabajando con igual ahínco en el 2014, a no sólo adaptarse a los escenarios que se presentan sino a "buscarle la vuelta" a las nuevas necesidades de mercado para salir fortalecidos de los doce (12) meses de arduo trabajo que les esperan.



La Asociación Dominicana de Productores de Cemento Portland (ADOCEM), es una iniciativa de las principales empresas productoras de cemento del país: Cemex, Cementos Cibao, Domicem y Argos, quienes han convertido esta institución en un conglomerado de apoyo a la construcción en el país, impulsando los intereses generales de su actividad productiva.

ETHIOPIA: Bank of Ethiopia signs US$33m loan agreement with Habesha Cement to build plant.

The Development Bank of Ethiopia (DBE) has signed a loan agreement with Habesha Cement for US$33m to build a 1.4Mt/yr cement plant at Holeta in Oromia State. Additional loan agreements were also signed in late November 2013 between Habesha, the DBE and the Preferential Trade Area (PTA) Bank, the financial arm of the Common Market for Eastern & Southern Africa (COMESA). The PTA Bank is co-financing the Habesha project by lending US$50m.

According to Addis Fortune, Habesha is now seeking a letter of credit to allow equipment for the cement plant to be imported. Chinese engineering firm Northern Heavy Machinery Industries have been hired to import and erect machinery for US$80m.

Previously the DBE approved a loan for US$83m to cover 70% of the project costs but it withdrew the offer in early 2013. The current DBE loan only covers 30% of the project costs. Other investors, including PPC and South Africa's Industrial Development Corporation (SAIDC) paid US$21m for nearly half of Habesha Cement in 2012. The plant was originally scheduled to start production by 2012.

POLAND: CEMENT OUTPUT RISES

Poland reported a double-digit rise in cement production during November 2013. However, cement sales slipped marginally during the month.

November cement output totalled 1.291Mt, up by 13.1 per cent YoY, according to the country’s cement association, SPC. Cement sales, meanwhile, fell by 2.2 per cent to 1.204Mt. 

For the 11 months to November 2013, cement output declined by 9.5 per cent to 13.606Mt, while sales dropped by 10.5 per cent to 13.867Mt.

SAUDI ARABIA: Cement sales down 17% to 3.65m tons in November

Sales of cement companies dropped by 17 percent in November 2013 to 3.65 million tons compared to 4.37 million tons in the same period in 2012, local media said quoting a report.

The sales drop was attributed to the correction campaigns and raids recently carried out against irregular foreign workers following the expiration of amnesty period on Nov. 3, experts said.

Sales of all cement companies fell during November with the exception of three companies, namely Northern Province Cement Company (NPCC), Arabian Cement Company (ACC) and Madinah Cement Company (MCC) whose sales increased by 58 percent, 24 percent and 20 percent, respectively, the report, based on data 
released by Yamamah Cement Company (YCC), said.

Riyadh Cement Company (RCC) and Jouf Cement Company (JCC) posted the biggest drop in November at 45 percent and 44 percent, respectively, the report said. Likewise, sales of Saudi Cement Company (SCC) and YCC contracted by 21 percent and 32 percent, respectively, according to the report.

Regarding clinker, the 15 working cement companies produced 4.75 million tons in November compared to 4.35 million tons in the same period last year, or an increase of 9.19 percent, the report said.

Earlier, a YCC report said cement sales rose by 2 percent to 4.19 million tons in October 2013 compared to 4.13 million tons in October 2012.

Additionally, the volume of cement produced by Saudi cement companies reached 4.23 million tons against 4.22 million tons in the comparable periods.

For clinker production, it soared by 19 percent in October 2013 to reach 4.74 million tons compared to 3.98 million tons in October 2012.

INDIA: CEMENT DEMAND IMPROVES.

After a period of slowdown, demand for cement is expected to pick up mainly because of the increase in

Government spends in the infrastructure sector, a survey by ICICI Securities has found.

The demand for the key construction material has improved in states like Punjab, Haryana, Uttar Pradesh, Bihar and Maharashtra, while its prices have increased by Rs 30-40 per bag in the past two months, the leading brokerage said in a statement here today. 

Others like Rajasthan, Gujarat, West Bengal and Karnataka are showing initial signs of demand improvement, while requirement in Andhra Pradesh and Tamil Nadu is likely to remain weak, it said. 

"We continue to maintain our positive stance on the sector and expect demand to pick up on the back of healthy rural housing demand due to a good monsoon, gradual pick up in Government infrastructure spends and low base of the past year," the financial services firm said. 

In November, cement despatches grew by around 3-4 per cent year-on-year while they declined by 7-8 per cent on month -on-month basis to around 18.5 MT, impacted by sand mining ban in Rajasthan (partially lifted on Nov 26), cyclones in Andhra Pradesh and Odisha, Assembly elections in Rajasthan, Madhya Pradesh, Chhattisgarh and Delhi and festive season, it said. 

The year-to-date demand growth in FY14 is likely to be at 3-4 per cent YoY led by east  and  and central regions, where expansion is expected to be 6-8 per cent. North region has likely grown by 2-3 per cent, while west and south are expected to have broadly flat demand. 

Cement prices have been hiked by Rs 10-15 a bag (50kg) in north, central and west regions effective December 2, while they were broadly flat in south and east. On an average pan- India prices increased by 1-2 per cent MoM, while remained flat YoY to Rs 284 a bag in November. 

PERU: Despachos de cemento crecieron 8.23% a octubre

Los despachos de cemento en el mercado peruano sumaron ocho millones 512,252 toneladas métricas (TM) de enero a octubre del presente año, 8.23 por ciento más respecto a lo registrado en el mismo período del 2012 (siete millones 864,701 TM), informó hoy la Asociación de Productores de Cemento (Asocem).

Durante el mencionado período, la producción de cemento fue de ocho millones 677,915 TM, lo que representó un alza de 7.80 por ciento en relación con el mismo período del 2012, cuando sumó ocho millones 49,674 TM.

A octubre las exportaciones llegaron a 159,190 TM de cemento, reportando un incremento de 9.73 por ciento respecto al mismo período de 2012, cuando fueron de 145,074 TM.

En ese sentido, los despachos totales de cemento (mercado nacional más exportación) sumaron ocho millones 671,443 TM en diez meses del año, cifra que muestra un aumento de 8.26 por ciento sobre similar período del 2012, cuando sumaron ocho  millones 9,775 TM.

La información recogida por Asocem es proporcionada por las empresas Cemento Andino, Cementos Lima, Cementos Pacasmayo, Cementos Yura, Cementos Selva y Cementos Sur.

El analista senior de Scotiabank, Pablo Nano, comentó que el crecimiento de los despachos de cemento en octubre refleja la recuperación de las inversiones del sector público y privado.

Indicó que esa recuperación fue impulsada por una mayor construcción de viviendas y oficinas, además de la ejecución de obras de infraestructura, por parte de los gobiernos regionales.  

"El deterioro de las expectativas empresariales ante la incertidumbre sobre el crecimiento de la economía a nivel mundial, afectó al sector construcción en setiembre, pero en octubre ya se está observando un mayor dinamismo", señaló a la agencia Andina.

En ese sentido, previó que en los próximos meses se mantendrá el ritmo de crecimiento de los despachos de cemento y que el sector construcción crecerá más de cinco por ciento en octubre.

Proyectó que sector construcción cerraría el año con un crecimiento de alrededor de diez por ciento, impulsado por el rubro inmobiliarios, especialmente por la construcción de oficinas y viviendas.