IRAN: World’s fourth cement producer

Iran is the fourth largest producer of cement in the world with an annual production capacity of 70 million tons, a senior Iranian official says.

“Presently, Iran with an output capacity of 70 million tons of cement [a year] is the world’s fourth largest producer of cement after China, India and the United States,” said Secretary of the Union of Cement Industry Employers Abdolreza Sheikhan.

Iran will become the world’s third cement producer if its 75-million-ton nominal capacity becomes its actual capacity, he added.

The Iranian official made the remarks at the Sixth International Cement, Concrete and Construction Technology Exhibition in Tehran.

More than 120 Iranian and foreign companies, including Turkey, India, China, Russia, the United Arab Emirates (UAE) and Italy participated in the event, which was held at Tehran's Permanent International Fairgrounds from December 27 to 30.

Creating job opportunities, promoting exports, providing the chance for Iranian companies to get acquainted with the state-of-the-art technologies in the world, offering ways to tackle air pollution in cement factories and creating the opportunity for exchanging views between experts and producers of cement and concrete were among the key objectives of the exhibition.

Vahed Sherafat, a Turkish producer, whose company represents a German brand in the construction field, said, “We have established our company in Iran’s Aras Free Zone. Because of the good quality of raw materials and cost-effectiveness of the products, we have chosen Iran.”

“We produce 120 types of products based on the world’s most sophisticated technology,” he added.

Hamidreza Tajik, a cement producer, said, “For the first time in the world, we have offered the idea of having an international standard for cement. This proposal was presented to the International Standards Organization (ISO) and was welcomed by many countries.”

Iran is projected to increase its cement output to 75 million tons and export 12 million tons by March 2014.

Iran exported cement to 24 countries including Iraq, Azerbaijan, Turkmenistan, Afghanistan, Russia, Kazakhstan, Kuwait, Pakistan, Qatar, Turkey, the UAE, Georgia, Oman, India, and China in the past Iranian calendar year (ended March 20, 2013.)

The country plans to boost its cement output to 85 million tons by the end of the next Iranian calendar year (starts March 21, 2014).

MOROCCO: Le secteur du ciment sauve son bilan en 2013

L’année 2013 a été celle de tous les maux pour les cimentiers. Le marché du ciment a eu du mal à pallier les dysfonctionnements dont il souffre, en l’occurrence ceux qui ont trait aux mises en chantier en baisse et aux dispositions et taxes instaurées par la loi de Finances 2013.

En effet, après avoir accusé un repli de 21% à fin mars 2013, de 12,6% au terme du premier semestre, puis de 8,2% au terme du troisième trimestre de l'année dernière, le marché du ciment a continué d'évoluer dans le rouge jusqu'à fin décembre, mais a tout de même poursuivi sa dynamique de redressement, selon le ministère de l'Habitat et de l'Urbanisme. La baisse de ses écoulements sur l'année 2013 a en effet été ramenée à 6,3%. 

Ces performances non rien d’impressionnant puisque les membres de l’Association professionnelle des cimentiers (APC) prévoyaient une baisse d’activité de 5 à 10% en 2013. Ils avaient appelé ouvertement le gouvernement à donner plus de visibilité au secteur et à écarter le scénario de nouvelles taxes.

L’APC réclamait «des décisions vigoureuses» pour réinstaller la confiance et permettre au secteur des matériaux de construction, de l’immobilier et des BTP de «renouer avec le dynamisme qui le caractérisait jusqu’en 2011», mais l’Exécutif n’a pas été au rendez-vous.

Selon l’APC, le ciment connaît actuellement une baisse «historique» au niveau des ventes et de la consommation. «Jamais le secteur du ciment n’a connu deux années de baisse successives», a-t-on précisé.

Rappelons qu’après une croissance à deux chiffres entre 2005 à 2010, quand les ventes du ciment avaient augmenté de plus de 40%, et une explosion en 2011, quand la consommation avait enregistré une hausse de 10,7%, celles-ci ont connu un trend baissier depuis la deuxième moitié de 2012. 

Une tendance qui suscite des questions: s’agit-il d’un tournant pour ce marché de plus en plus saturé ? Ou bien est-ce une baisse passagère due à des facteurs conjoncturels ?

En effet, ce secteur fortement soumis aux aléas de la conjoncture, a connu depuis l’exercice écoulé, l’une des plus mauvaises performances depuis des décennies. Une tendance qui a commencé à s’imposer en 2012 mais ne semble pas prendre une autre trajectoire.

Face à l’accentuation de la crise dans le secteur, Mohamed Chaïbi, président de l'Association professionnelle des cimentiers du Maroc, qui s’était montré réticent par le passé, s’était ressaisi en donnant des déclarations sur le sujet à une radio locale. 

Il avait ainsi imputé la responsabilité de cette situation à des facteurs naturels. En cause, les importantes pluies qui ont induit «une baisse des mises en chantier de 27% durant le premier semestre», mais aussi l’instauration de nouvelles dispositions et taxes décidées par le gouvernement en 2013, telle que «la taxation de la plus-value sur le logement à hauteur de 30% alors qu’elle était à 20%». 

Dans le détail, il a rappelé que la machine de construction était en panne en début d’année à cause des pluies qui ont engendré des arrêts de chantiers. Les ventes de ciment souffrent de la crise que connaît l’immobilier, lequel représente 80% de la consommation de ce matériau. «Le fait que le premier semestre ait enregistré une baisse de 27% des mises en chantier est un indicateur important. Cela veut dire que les gens n’ont pas mis en chantier les constructions de maison», a-t-il regrettait. S’ajoutent à cela, selon lui, les «autres problèmes habituels, à savoir le manque de foncier, le ralentissement dans l’octroi des autorisations de construction et les lourdeurs administratives».

Pour les perspectives 2014, l’APC se montre plus optimiste. Le lancement du programme pour le moyen standing et une pluviométrie bien répartie soutiendraient la consommation des matériaux de construction en général.

AFRICA: Five Dangote’s cement plants to be completed in 2014

Dangote Group has disclosed that not less than five of its cement plants spread across five countries in Africa will be completed this year.

The Group President and Chief Executive, Aliko Dangote said that the company will add about 13.5mmt of cement per annum to the existing capacity, when completed.

The on-going plant projects are Zambia, 1.5mmtpa; Tanzania, 1.5mmtpa; South-Africa 3mmtpa; Republic of Congo, 1.5mmtpa; and Gabon 1.5mmtpa.

Information available to Vanguard revealed that Dangote Cement is already working on additional third and fourth production lines to the existing 6mmtpa in Ibese, Ogun state to bring the total capacity to 12mmtpa and another 3mmtpa line currently being added to the Obajana cement plant in Kogi state.

Addressing a group of African businessmen in his office at the weekend, Dangote said the Group’s core business focus is to provide local, value-added products and services that meet the basic needs of the populace through construction and operation of large scale manufacturing facilities across Africa.

According to him, the Group is focused on building local manufacturing to generate employment, prevent capital flight and provide locally produced goods for the people.He disclosed that presently, 

Obajana is the largest cement plant in sub-saharan Africa with a current capacity of 10.25mmtpa and an additional 3mmpa planned before the end of this year.

Dangote stated that the Group would continue to lead other investors to ensure Nigeria becomes an industrial giant nation that is self-sufficient in production rather than being a leader in importations.

Stressing on the need for investments in the real sector, he said “This indeed, shows that Africa is gradually taking its destiny in its own hands rather than wait for investors from outside Africa. 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.

“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.

KENYA: Cement prices hiked on new mining levy

Cement makers have increased prices of the key construction commodity in the wake of a new mining levy imposed by the Ministry of Mining.

The move wrecks hopes of lower house prices on new buildings as it rolls back the relief handed to future homebuyers by manufacturers when they slashed prices in October.

Ex-factory prices – those at which wholesalers buy from manufacturers at the factory – were hiked by up to five per cent on Monday; meaning the increase at retail outlets will be even higher when delivery costs and other charges are factored in.

Najib Balala, the Cabinet Secretary for Mining, gazetted a Sh140 per tonne mining levy on cement on December 18, overriding an earlier notice pegging the levy at one per cent of the turnover. The new levy translates to Sh7 per 50kg bag.

“This is totally unfair and nowhere in the world do governments use such unfair strategies. It is the poor wananchi who will bear the brunt as the cost will be passed on to them,” said Narendra Raval, chairman and CEO of Devki Group.

“We effected a new price on Sunday midnight. The levy is unnecessary and illegal and should not be on cement because some cement makers are not even mining anything here.”

Raval said the levy will discourage people from building houses and in return spur rapid growth of shanties, but manufacturers “have no choice”.

National Cement, a member of the Devki Group and maker of Simba Cement, has increased its ex-factory prices from Sh600 to Sh625 per 50kg bag. It had reviewed its price down on October 1.

“We have increased by Sh25, taking into account the Sh7 levy, VAT (16 per cent) and power charges of Sh4-5 per unit on the power tariffs that are the highest ever,” he said.

Bamburi Cement has reviewed its ex-factory prices upward. Its corporate affairs manager Susan Maingi was unavailable to comment on it new pricing.

“We have definitely reviewed the prices but I do not have the specific details,” said Fidelis Sakwa, Bamburi’s product development manager.

Athi River Mining, maker of Rhino Cement, said it has not adjusted its prices but is conducting a review of costs to inform its stance.

“We have not reviewed prices so far but the levy has definitely pushed up costs. We are looking at our cost structure to see where we can improve efficiency to reduce costs and avoid raising prices,” said Surendra Bhatia, the deputy managing director.

“We are fairly priced and we prospect to always find some cost efficiencies,” he said, adding that its ex-factory prices differ based on its different markets.

Phone calls to Kephar Tande, the East African Portland Cement Company managing director, to establish the firm’s position on the new levy went unanswered.

The rise in cement prices will impact on the overall cost of construction, which was hoped to otherwise head downward after makers of key commodities such as cement and steel bars slashed prices in October.

Most affected will be self-builders who rely on incremental construction models as they lack funds to out-rightly buy building materials in bulk. Cement prices have remained stable over the past five years, retailing at between Sh650 and Sh750 per bag.

Real estate analysts had hoped new-builds released in the market from October this year would have been cheaper, factoring in the price cuts in the fourth quarter 2013.

SAUDI ARABIA: Saudi Cement posts SR256m net profit

Saudi Cement beat analyst expectations with an 8 percent fall in fourth-quarter profit, which the company blamed on lower sales and rising raw material costs.

The company made a net profit of SR256 million ($68.3 million) in the three months to Dec. 31, down from SR278 million in the year-earlier period, according to a statement to Saudi Arabia's bourse.

Saudi Cement attributed the profit drop to a decrease in sales during the quarter and the high cost of imported clinker, a raw material from which cement is produced.

Analysts polled by Reuters on average forecast Saudi Cement would make a quarterly profit of SR242 million. 

The firm's full-year net profit for 2013 was SR1.13 billion, up from SR1.10 billion in 2012. It cited improved operational efficiency as a reason for this increase.