GLOBAL CEMENT INDUSTRY. KNOWLEDGE.
August / September 2016
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Q&a: LEADERS
THE ROAD AHEAD IS GREEN TERRA MELHOR, BRAZIL
CW RESEARCH:
CEMENT VOLUMES GROW AT A SLOWER PACE FEATURE:
ALTERNATIVE AGGREGATES: CHEAP, GREEN, SUSTAINABLE FEATURE:
OPTIMIZATION: THE SOLUTION TO SURVIVAL News
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Analysis
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Market Coverage
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Interviews
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People Moves
EDITOR’S NOTE Letter from the publisher and editor
Green, sustainable, efficient In an era dominated by environmental pressures and competitiveness, green and sustainability become key concepts for the cement sector.
The CemWeek Magazine is published by the CW Group LLC PO Box 5263 Greenwich, CT 06831, USA T: +1-702-866-9474 www.cwgrp.com www.cemweek.com
STAFFBOX ROBERT MADEIRA CEMWEEK PUBLISHER HEAD OF CW GROUP RESEARCH
gabriel burete While cement makers face unprecedented pressures to decrease their carbon footprint, product optimization and innovative solutions throughout all phases of production are key to survival in a highly commoditized, competitive business. CemWeek Magazine, issue 34, covers practices and advances in this vital area. This issue also features a view on alternate aggregates, as their importance in concrete making only grows stronger. As aggregates typically make up the majority of the volume of a concrete mixture, it is paramount that producers find cheaper and greener alternatives.
content editor and online cooridnator
PRASHANT SINGH RALUCA CERCEL STEFANA ABICULESEI Ana Catarina Almeida Tea Vukicevic silviu stefanescu Sara Ruas CONTRIBUTING WRITERS & RESEARCHERS
SANTOSH SHETTYE DESIGNER
LIVIU DINU Strong and determined actions are required for the cement industry to become sustainable, in the near future. We have discussed sustainability and environmental issues in the Brazilian cement sector, with experts from Terra Melhor. Read the first part of an exclusive interview, in CemWeek Magazine, issue 34.
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And as usual, this issue provides all the relevant news about the main indicators of the industry, including the latest facts and figures about cement volumes, energy prices, relevant people in the business, regional developments, equipment and construction projects. Don’t miss out the numbers and the trends laid out in the special sections.
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contents FEATURES 4 Q&A Leaders: Discussing sustainability and environmental issues in the Brazilian cement sector, with experts from Terra Melhor. 10 From racetrack to road: Inform software Cement producers can learn a lot from the data driven decision making in today’s motorsport. 14 Construction practices and the use of alternate aggregates) A view on alternate aggregates, as their importance in concrete making only grows stronger. 20 CW Research: VFR Global Cement Volume Forecast Report (GCVFR)
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24 Product optimization, modernization and Technology Innovative solutions throughout all phases of production are key to survival in a highly competitive market
DEPARTMENTS 1 EdiTor's letter 44 Construction & building materials by bmweek.com Q&As on the future of the cement Construction and building industry materials update 3 numbers in brief 46 PETCOKE PRODUCTION, Global shipping rates update SHIPPING, AND PRICING BY PETCOKEWEEK.COM 30 research Petcoke industry news update Cement Volumes Cement Energy Markets 34 people People on the move 36 38 40 42
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regional reports Europe, Middle East & Africa South-East Asia Asia Pacific Americas
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48 equipment Equipment and notable projects 50 cw group meeting agenda CW Group’s upcoming events 50 BUZZ Top 20 CemWeek and BMWeek stories
numbers in brief
CW Research: Global quicklime, hydrating and slaked lime market A stable market now slowing down Lime manufacturing has grown by a modest 0.8 percent in 2015 at the global level, far from the above four percent year-on-year growth rates the lime manufacturing world saw two year ago. China, which controls a third of the global lime production, is partly responsible for the slowdown, given its new model of slower industrial growth. Among the largest global markets of quicklime, apart from China, are the United States, India, Russia, Brazil, Germany and Turkey. CHART: Global lime production (‘000 tons) Global lime production 4,00,000
3,00,000
2010
2011
2012
2013
2014
2015
Source: CW Research
Though the main end-user of quicklime is the steel industry (accounting for almost 40 percent of lime sales in 2015), other segments are becoming more rounded in terms of lime consumption as well. CHART: Top lime end-user segments at the global level in 2015 35% 25% 15% 5% Metallurgy and ore
Oil and Gas
Sugarcane Paper and Agriculture Civil Pulp construction
Other
Road Alumina construction
FGD
Steel
Source: CW Research
Most notably, the flue gas desulfurization market (FGD) is gaining territory in countries in which power generation is coal dependent, and where technology is growing out of date. As such, the FGD market is quickly growing in developed countries, while only being nascent in developing economies (such as Africa and some Asian countries). www.cemweek.com
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Q&a: Leaders
THE ROAD AHEAD IS
GREE
We have discussed sustainability and environmental issues in the Brazilian cement sector, with experts from Terra Melhor.
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Q&a: Leaders Q: The cement industry has been seeing an increased focus on sustainability and environmental commitments. What challenges does green cement encounter in the Brazilian market?
A:
The rules established by Solid Waste National Policy, published in 2010, put an end to the duality of the old collectionfinal disposal system. Certain obligations that require a greater technical complexity and mainly the introduction of technology in the industry, ensure an increased use of waste, applying them in an economic cycle and preventing the saturation in the uptake of natural resources.
to support the introduction of sustainable solid waste management. But we can´t omit ourselves from facing our biggest bottleneck which is the insufficient technical capacity of the Brazilian market to receive these new systems. The lack of technical capacity reflects in the activities related to the project concept, judgment of tender; financial projects; contract supervision; operational characteristics; secondary resources quality and environmental impacts mitigation. In particular, the huge potential offered by transforming municipal solid waste into a refuse derived fuel needs yet to be addressed. The federal legislation (PNRS) opens the door for this to be explored, but as mentioned technological, capacity and local regulatory challenges remain to be overcome.
Christiane Dias Pereira
Civil engineer and lawyer, specializing in environmental law, Ms. Pereira acts as a doctoral student and coordinator of the Technical University of Braunschweig (TUBS) in Brazil and as president of the CREED Institute. She also teaches waste recovery at PUC-RIO, TUBS, EPHFs-SP and SenacJundiaĂ. The legal standard also contains important tools necessary to allow the country in addressing the main environmental, social and economic problems resulting from inadequate solid waste management. It promotes prevention and reduction of waste generation, and having the practice of sustainable consumption habits, as well as a set of tools to provide increased recycling, reuse of solid waste, the environmentally appropriate final disposal but also energy recovery. We are living a watershed moment, with political and social market recognition, matured imported technology, environmental policies for protection and conservation, generation of green jobs to promote social inclusion, all positive factors 6
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Therefore the main challenge is to build the capacity to integrate a sustainable waste management system into a reliable production system within an environmental friendly legal frame.
Q: Brazil’s economy is going through its worst recession in more than three decades. Does this leave more room for R&D and innovation? Or are cement makers inclined to temporarily halt investments in environmental objectives?
A:
After performing a series of investments to expand the production capacity from 60 million
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tons to 90 million tons, between 2005 and 2015, the cement industry now deals with the reduction in demand in the country. After a fall of 9.2% in internal sales in 2015, compared to 2014, from 70.8 million tons to 64.3 million tons, the sector expects a year with less than 60 million tons in 2016. This means that in order to overcome the recession period, it will be necessary to introduce other measures such as operational efficiency through modernization of the industrial park and energy efficiency. Therefore, the longevity of companies is directly related to research on new sources to add in cement, technological evolution, energy efficiency and substitution of energy sources for alternative fuels, being them either biomass or RDF. The Brazilian industry is modern with 99% dry route, made with pre-heater and pre-
calciners, online monitoring, mills with high efficiency separators and bag filters. It is also a pioneer in the use of biomass as an alternative fuel. Plants co-processed
outbreak and also for providing a suitable destination for used tires, contributing to a better environmental management of the waste.
Hubert Baier
In Brazil we say: If life gives you a lemon, make a lemonade!
Q: Strong and determined actions are required for the cement industry to become sustainable, in the near future. What would motivate cement producers to undergo drastic changes, towards a greener future?
Geoscientist and researcher, holding a PhD in mineralogy, Mr. Baier is currently director-partner of WhiteLabel Tandem Projects (WLTP). His work experience in the field of fuels and alternative energy includes companies such as Holcim, Dyckerhoff or ThyssenKrupp.
1.2 million tons of waste in 2013, with 37 of the 87 plants being licensed for coprocessing. Biomass already amounts for 13.2% of the energy matrix and 58 million tires were processed in 2013, an important practice when it directly reflects on public health, by mitigating the dengue
Quite the contrary, the focus is to use the recession momentum to increase the operational efficiency.
Votorantim has created a business unit to drive the diversification of its energy matrix and the projects of co-processing, which use industrial waste to replace raw materials and fuels, in the manufacture of cement. This means that the cement market is not blocking investment.
A:
The cement industry works in long term perspectives, which means it can only adapt at the same speed. Building the future also means investing the earnings made today. Currently, the market is weak and the industry is seeing large production over-capacities
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Q&a: Leaders
and uncertain economic developments the world over, making it even harder to invest into future. A possible starting point may be taxing the use of virgin resources, but this needs to be balanced against its impact on the
intensive fuels (coal, petcoke) are much more heavily taxed than natural gas, for instance. Waste-derived alternative fuels, on the contrary, are tax-free! Cement manufacturing technology is fairly optimized and developed, thus one
Luiz Carlos Reichenbach Sousa
A researcher, holding a PhD in chemical engineering, Mr. Sousa acts as an independent consultant. He has an extensive background in the cement industry with a waste management focus, having worked in the Holcim group for 14 years.
cost of the building materials. Also it is not sure how this kind of tax would be applied to such a ubiquitous material, such as limestone. However such taxation systems are already in place, e.g. in Mexico, where the more carbon8
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should not expect major technological improvements, but rather incremental ones. It is true that energy efficiency can still be improved by upgrading existing plants (e.g. more stages in the pre-heaters), but this is an expensive route the industry
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will not take, at least not for existing plants. Actions in this area will not bring much, but authorities should ensure that new plants at least conform to the highest standards in energy efficiency or environmental protection. Still, higher energy prices would trigger investments to increase the efficiency and push the industry to seek for new technical solutions. There is limited incentive to do this at present with low energy prices. Higher prices would also mobilize the industry to more rapidly adopt wastederived alternative fuels. For sure, CO2 taxation or its perspective is making the industry move, as this tax will have a major impact on production costs. However, it still remains an open point whether carbon capture and storage (CCS) systems are truly more sustainable, as they demand additional energy for operation and the reliability of the storage still needs to be demonstrated.
Finally, product standards, that are based on technical performance rather than composition of the product could be the source of much innovation, possibly leading to more sustainable products. However, these novel binder systems need thorough testing, also regarding their durability. Again: do not expect fast change!
Q: Cement plants are increasingly being operated by using a basket of fossil fuels and waste derived fuels or alternative fuels, each with different carbon intensities. Although there is an International standard for carbon intensity, this is locally and nationally tailored to suit environmental initiatives. How would you describe the Brazilian regulations, when compared to the international standards? How would a better standardization of emission intensities help with the implementation of alternative processes?
A:
Carbon intensity of waste-derived fuels is very difficult if not impossible to standardize, at any level local, national or global. This is simply due to the fact that you are invariably
Standardization makes some sense, carbon accounting for instance, but such a global standard would hardly affect Alternative Fuels’ acceptance. AFs are not selected based on their carbon footprint.
Olga Kasper
She is a geography major, holding a Masters in Applied Geography with an emphasis on Environmental Management and Solid Waste from RWTH Aachen. Ms. Kasper currently works as Environmental Administrative Assistant at Earth Best.
dealing with a mixture of materials of variable origins, qualities and quantities when handling alternative fuels. So, local/national tailoring is perfectly reasonable. One could even argue that carbon in the AF is a secondary concern as the main carbon reduction achieved when using AF comes from displacing the fossil fuels used otherwise. Only when talking about displacing one AF by another could such carbon intensity discussions matter.
Other factors such as availability, respect of technical requirements and - above all prices play a much more important role in determining adoption of alternative fuels. Other factors, external to the cement plant such as stakeholder’s perception of waste co-processing are an additional important factor. Read the rest of this interview in CemWeek Magazine, issue 35.
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FEATURE
From Racetrack to
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ROAD Modern F1 cars are a world away from our everyday road trucks. But in the daily race for competitiveness, cement producers can learn a lot from the data driven decision making in today’s motorsport. The right planning strategy and realtime data insights can help you to cross the finish line first. www.cemweek.com
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FEATURE lanning the supply of cement from plants to storage depots and customer sites can be quite challenging. Planners and Dispatchers face a high variability of demand, heavy onsite traffic during peak hours, limited availability of trucks, driving time regulation limits and many other restrictions. At the same time, they must try to find the best balance between customer satisfaction and transport costs. If just one item in the mix fails, the entire plan may collapse like a house of cards – with shipments running late and costs way out of line. And to make things worse, deliveries from plants are often scheduled independently on a plant by plant basis to serve the demand within a plant’s region only.
minimizing costs and maximizing service quality – based on the business criteria defined. Optimization benefits from the enormous advances in computer hardware over the past decades, but much more from even greater advances that have been made in algorithms and software over the same time: Hardware power has increased by the factor 1,200, while algorithms have improved by a factor of 55,000 over a period of 20 years. The joint forces result into a staggering factor of 66 million, or in other words: a planning model using linear programming that would have taken two years to solve in the 1990s, could be solved in just one second today. The basic steps for a comprehensive optimization approach are shown in figure 1.
incorporating the service levels selected by the dispatcher. Depending on the software and algorithms used, an optimization run like this will take approximately 60 seconds. The software also allows dispatchers to compare several scenarios for the same data set by simply changing the scaling factors and objectives. 3. Faster Pit Stops: Precisely timed pit stops are vital to turn race strategy into success. Time lost to unscheduled stops is hard to catch up. The software can also be used to calculate an optimized loading schedule based on the order book information, business rules and site constraints. It allocates time-slots to cement buyers and inbound suppliers, thus avoiding hauliers
Glory Days Gone are the days of pen and paper, marker boards and magnets. Even spreadsheets have been replaced by conventional scheduling software packages, which are a practical tool for the daily routine. They automatically copy order data from the ERP system (Enterprise Resource Planning), provide user-friendly graphical interfaces to help assign trucks to loading points, calculate schedules and turnaround times, or may even visualize routes on maps. But with a larger truck fleet on the road, numerous plants & depots and delivery sites spread across a wider region, huge data volumes have to be handled in order to find a set of good schedules. Business rules (e.g. preferred service) and site constraints like product availability at a specific loading point add even more variables to the calculation. The human brain is not up to this sort of challenge. Even experienced schedulers and dispatchers are stretched to their limits if they only work with software that does not have its own intelligence.
Powered by Algorithms A giant leap forward in planning technology is the use of intelligent optimization software packages. They are equipped with algorithms that analyze a virtually endless number of scheduling decisions in real time and identify those that are ideal for
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Fig 1: Intelligent Transport Planning with Real-time Optimization
1. Pre-race Data: The process starts with the online interfacing or import of available data into the optimization software. The ERP system sends all order creations and updates; geo data is used to calculate travel distances and trip durations; fleet data provides required information on each available truck and its characteristics and capacities. Often, haulier payment schemes mean that some trucks are more attractive on certain routes than others. 2. Starting Grid: The software uses this information to calculate an optimized cement delivery schedule and fleet configuration for the following shift(s) or day(s) –
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arriving randomly at the plant – adding speed and consistency to the handling at your plant. Business rules that may apply are for example customer/contract profitability, preferred haulier list or minimised product changes at loading points, etc. Site constraints may include product availability at a specific loading point, loading point capacity and availability, etc. 4. Haulier Access: Once the plan has been approved or amended by the dispatcher, it will be published. Hauliers, suppliers and ex-works customers will receive an e-mail or text notification on available time slots and haulage orders. They will log onto
soared by 30 percent. All that comes with fewer working hours (-4.5 percent). But most impressive is the number of trucks: 19 instead of 28 (Note: for the same quantity of deliveries). Besides the financial benefits this will also help to reduce off-site and on-site traffic and contribute to a safer working environment.
Strategic Decisions
Fig 2: Intelligent software vs. manual planning transport planning
the system via a web-based front end and accept or reject those jobs that were assigned to them. After all modifications of the schedule have been completed and all third party confirmations have been rechecked, the plan can be applied to actual operations. Truck drivers are informed about their time slots and gate numbers via radio or mobile equipment. 5. Real-time Updates: Vehicle breakdowns and traffic holdups are a nightmare for any race car driver. Even small incidents can mean the difference between finishing on the podium or scoring no points at all. Daily challenges like ad-hoc orders, cancellations, delays, truck or machine breakdowns, etc. disrupt the schedule and will affect the efficiency of the operation if no countermeasures are taken. Using real-time information, the software reviews and adjusts all planning decisions constantly. GPS data from the trucks and live information from the gates and loading stations are fed back into the system. Its real-time optimization feature checks which order(s) can be moved forward and updates the entire schedule accordingly. The plan is automatically updated. Similar to flight information at airports, display panels within the parking/gate check-in area update truck drivers on the progress, hence reducing the need for drivers to constantly check with plant staff.
6. Race Control: The optimization approach lets schedulers and dispatchers gain full control over their OTIF (OnTime In-Full) performance. As part of the daily routine, the software allows a choice as to whether service levels can be met with fewer vehicles or service levels can be increased with the existing vehicle fleet. They are also able to offer suitable delivery slots at the point of order taking. Intelligent scheduling software turns cement distribution, cement loading and inbound deliveries into an efficient and smooth process. It significantly reduces delays and frustration. By using real time optimization software for network wide transport planning, resources can used in a more efficient way. In a smart network, vehicles can be shifted where required, preventing idle times in some locations and work overloads in others.
Man against machine Figure 2 compares real-world data from a producer in the cement industry in Europe – before and after optimization. The scenario reflects a typical working day. This race “manual planning against intelligent software planning� shows the enourmous potential of optimization: empty mileage is down by almost 9 percent, and the number of loads per truck per day
The introduction of intelligent optimization software should always be associated with organizational changes, e.g. service level definition, pooling of truck fleet, review of haulage contracts, etc. If cement producers do decide to invest, they should combine their industry knowledge with the consulting expertise of the software provider. But the use of intelligent planning software is not only limited to road transports. Strategic network planning enables to optimize the distribution of bulk material in terms of time to market and cost per unit moved. In a smart network, ship, rail and road resources can be shifted as required, preventing idle times in some locations and work overloads in others.
About INFORM INFORM specializes in Advanced Optimization Software to improve planning and operational decision making. Integrating with almost every existing IT landscape, these systems render a wide range of business processes more productive, robust, and reliable. Today, more than 550 business analysts and software engineers, originating from more than 30 nations, provide systems to more than 1,000 customers, worldwide. Solution deployment is turn-key, including individual customization, on-site consulting, go-live assistance, and perpetual 24/7 support. Authors: Thomas Bergmans, Dirk Schlemper from INFORM GmbH
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FEATURE
Construction Practices
and the Use of Alternate
Aggregates As aggregates typically make up the majority of the volume of a concrete mixture, it is paramount that producers find cheaper and greener alternatives.
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ction
ternate
ggregates
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FEATURE he annual production of concrete has reached the equivalent of one ton for each person on the planet. As aggregates typically make up about 60% to 75% of the volume of a concrete mixture, it is paramount that producers should find cheaper and greener alternatives to the key ingredient of the most produced material on Earth. Several options have emerged, with advantages and drawbacks for each one of them.
The search for the best alternative aggregate
Sources for these basic materials can be grouped into three main areas: mining of mineral aggregate deposits, including sand, gravel, and stone; use of waste slag from the manufacture of iron and steel; and recycling of concrete, which is itself chiefly manufactured from mineral aggregates. Blast furnace and steel furnace slag account for the largest-volume of recycled materials used as construction aggregates. Blast furnace slag is either air-cooled (slow cooling in the open air) or granulated (formed by quenching molten slag in water to form sand-sized glass-like particles). If the granulated blast furnace slag accesses free lime
crete. Steel furnace slag is also air-cooled. In addition, there are some other materials that are used as specialty lightweight aggregates: clay, pumice, perlite, and vermiculite. However, as the search for greener cements is accelerating, producers are beginning to take into account other alternatives as well. The pressure of environmental regulations, as well as the focus on developing more efficient production cycles has led specialists to closely analyze a host of new materials, many of them readily available. As a result, a variety of alternative aggregate materials emerged.
Construction aggregates, or simply "aggregates", are a broad category of coarse Probably the most appreparticulate materials used ciated one is glass, which in construction, including Blast furnace and steel furnace slag account for can easily be used as an sand, gravel, crushed stone, aggregate material with a slag, recycled concrete and the largest-volume of recycled materials used as lot of potential. Glass aggeosynthetic aggregates. Ag- construction aggregates gregates, a mix of colors gregates are the most mined crushed to a small size, materials in the world. They are substituted for many are a component of composite matericonstruction and utility projects in place during hydration, it develops strong hyals such as concrete and asphalt concrete. of pea gravel or crushed rock, often saving draulic cementitious properties and can Their purpose is to serve as reinforcement municipalities important sums of money, partly substitute Portland cement in confor the overall composite material.
Closeup of a papercrete block
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Granulated blast furnace slag
depending on the size of the project. Any very attractive for decorative concrete ap- pipe. Another common use would be as fill type of glass, when broken down to about plications. Because it is readily available to to bring the level of a concrete floor even #8 to #4 sieve, can be used to produce ce- some extent, glass could be considered as a with a foundation. Use of a glass aggregate ment compression strengths comparable low cost material. However, there are rea- helps close the loop in glass recycling in to that of normal weight concrete. Known sons this material has not seen wide adop- many places where glass cannot be smelted as glasscrete, broken and powdered glass is tion. Glass is well known for having issues into new glass. one of the best aggregate alternatives on the with alkali-silica reactions. When this silica list. The very significant hardness of glass chemically reacts with naturally occurring Another alternative material is expanded gives the glasscrete an abrasion resistance hydroxyl ions in the cement, silica gel is polystyrene (EPS), which plays a very that very few natural stone aggregates can formed which causes cracks in the cement, unique role in concrete production. Research has shown match. Moreover, because glass aggregate has basically The pressure of environmental regulations, as well as that concrete made with this matezero water absorption, it improves the flow proper- the focus on developing more efficient production cycles rial behaves very similarly to light ties of fresh concrete so that has led to a variety of new alternative aggregates weight concretes a reduction in water content containing tradican be obtained even without the use of water reducing admixtures. as it absorbs water. Glass is also very expen- tional aggregates. This is believed to be The high chemical resistance of the glass sive to properly clean. Any residue leftover the case because the Styrofoam fills in to acidic solutions makes it suitable be ap- on glass such as organics or sugar can also the gaps that would normally be filled with air. EPScrete, as it is known, is made plied to cases when the exposure to those negatively effect the strength of concrete. using 1mm - 3mm diameter expanded chemicals is expected. Last but not least, the novel colors and pellicular reflective na- Common applications of glasscrete are as polystyrene beads, sand, cement and wature of glass aggregates give it special light pipe bedding—placed around sewer, storm ter. Even though the large aggregate is reflections that couldn’t be obtained with a water or drinking water pipes to transfer replaced with polystyrene, this type of regular natural aggregate. That can make it weight from the surface and protect the concrete typically reaches a compression www.cemweek.com
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FEATURE strength of 3psi which is very compara- papercrete (without a supporting func- Not too far from plastic in terms of propble to lightweight concrete and 25% less tion) have been found to have decreased erties is crushed rubber. When vehicle than normal weight concrete. EPScrete thermal conductivity and better sound tires reach the end of their usable life, they is cheaper than lightweight concrete and absorption. Because the strain on this can still find some use as a replacement has very good acoustic and thermal re- type of concrete is so much larger than for course aggregate in concrete mixes. sistance. Although it is not as strong as the stress, walls such as these although "Crumb rubber" is a crushed form of car stone-based concrete mixes, it has other being strong will show large amounts of or truck tires that are ground up between the sizes of 3 - 10 mm. This mix has very advantages such as increased thermal and deflection under load. poor compressive strength due to its sound insulation properties, as well high air content. It is believed that as easy shaping. EPS concrete comBroken and powdered glass is one when this rubber is mixed in with bines the construction ease of conthe concrete, air becomes trapped in crete with the thermal and hydro of the best aggregate alternatives with it. One benefit to the addition insulation properties of EPS and can available of this alternative is the rubber keeps be used for a very wide range of apthe concrete from shattering in failplications where either lighter loads, ure. Rubber was successfully used in agthermal insulation or both are desired. The main disadvantage of this material is Adding to the range of alternative aggre- gregate replacements of about 20% withits lower strength. gates, plastic is another possible solution. out significant adverse effects. Beyond a High-density polyethylene can be added 25% replacement, it can badly affect the Surprising as it may sound, paper can also to concrete and sand as a feasible replace- compressive strength of concrete, which be used as an alternative aggregate mate- ment for coarse aggregate. Research has drops significantly, by up to 85 % in cerrial. Papercrete is a hybrid material made shown that plastic bags that are tightly tain cases, which is a matter of concern. of paper slurry, white lime or sand, and packed and then heated, shrink to a size Moreover, adding too much rubber for Portland cement. To make this type of that can easily be used in concrete. But as an aggregate creates harsh mixes, with a concrete, paper pulp is added to a basin the name implies, the material is too duc- lot segregation leading to honeycombing of water and allowed to soak for 24 hours, tile at full strength to support structural and ineffective placement. Durability of then slurry is mixed in. This creates a loads at 2500 PSI. One benefit to this ma- the concrete is also of interest since it was concrete that is not acceptable for struc- terial is its measurable qualities in holding reported that the rubber aggregates were behaving adversely at higher replacetural projects. Separation walls made of heat within buildings. ments due to greater increase in porosity of microstructure of the matrix. So rubber is an alternative, but cannot completely replace traditional aggregates. While its fatigue resistance (viscoelastic behavior) is great, it can be used in some high end applications. On the downside, softer nature of the aggregates make it unacceptable in cases of abrasion resistance.
Recycled aggregates as an alternative While innovative solutions can be found by using readily available materials such as glass, plastic or rubber, one of the most handy ways to find good quality aggregates is to actually recycle aggregates themselves. Unlike deposits of sand and gravel or stone suitable for crushing into aggregate, which can be anywhere and may require overburden removal and/or blasting, "deposits" of recyclable aggregate tend to be concentrated near urban
Plastic used as aggregate
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A five-component system, concrete is usually made using cement, water, aggregates, additives and admixtures.
areas, and production from them cannot be raised or lowered to meet demand for aggregates. The supply of recycled aggregates depends on the physical decay of structures and their demolition. The recycling plant can be either fixed or mobile; the smaller capacity mobile plant works best for asphalt-aggregate recycling. The material being recycled is usually highly variable in quality and properties.
These piles are then crushed to provide a subbase for roads and driveways, among other purposes. This program has huge economic and environmental benefits to the local and surrounding area. Contractors save on disposal costs and less aggregate is buried or piled and abandoned.
Alternative aggregates: a case by case solution
because application should not require expensive tools. Barriers such as these can cause implementation to be limited to the well funded projects. As for the condition of high availability, it ensures that people will have access to the material and that it will be cheap. Cost is one of the major contributors to the problem of limited access to concrete aggregate and a cheaper solution would help communities anyway.
Producers agree that the main criteria for Many aggregate products of various types the best aggregate material to be used in Currently there is no are often recycled for other sure-fire replacement industrial purposes. In Bay for the traditional agCity, Michigan, for exam- Research has shown that concrete made with EPS gregates for concrete. ple, a recycling program behaves very similarly to light weight concretes Every addition to the exists for contractors and mix changes the contheir own unused prod- containing traditional aggregates crete’s properties. As a ucts. These piles are comresult, each alternative posed of unused mixed concrete production should be: low tech concrete, block, brick, gravel, pea stone, and high availability. And when speaking solution needs to be carefully analyzed and and other used materials. Composed about innovative alternatives, everyone ex- implemented depending on specific conof several alternating piles that grow to pects an improvement in the final product. struction requirements and regional availhundreds of feet in height and diameter. Any new solution needs to be low tech, ability of the materials.
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Report
cw research:
Volumes keep growing, albeit at a slower pace
Global cement volumes are expected to follow the international economic growth slowness, with notable individual exceptions. Demand is still forecasted to increase, through 2021, with the global (ex-China) market showing growth.
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Report he global economic growth continues trending slow, but some regions may be stabilizing. The IMF revised their October 2015 predictions, and while most regions maintain their downwards trends, the global outlook is not all grim. Notably, the Euro Area got its first upgrade according to the IMF’s summer update, while the Middle East and North Africa region was revised upwards, when compared to the previous update. Furthermore, emerging and developing economies seem to have stabilized to some extent, the IMF only marginally revising its April 2016 forecast.
Latin American markets have been ravaged in 2016, with Brazil expected to continue to see double digit declines
In this context, the general trend for cement volumes shows slowness in some emerging markets, according to figures highlighted by CW Group’s 2H2016 update to the Global Cement Volume Forecast Report (GCVFR), a twice-yearly update on projections for cement volumes on a national, regional and global level. But there are positives too, with China surprisingly recovering from the -5 percent volume contraction last year that was expected to continue, to record a low singledigit growth in 2016. Demand in China is seeing a moderate increase for now, despite a slowdown in economic growth.
The robust growth in India is expected to lead to a sustained upside for the next couple of years
The U.S. market is also going through a fairly good period, outperforming expectations, along with countries such as India, where the robust growth in 2016 is expected to lead to a sustained upside for the next couple of years.
For more information and placing an order, please contact Liviu Dinu, Market Services & Marketing Consultant, CW Group (Europe), by phone at +40-744-67-44-11, or e-mail at ld@cwgrp.com.
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Brazil and Russia saw mid-teens shrinkages in the first half of 2016, when compared to the similar period of last year. Latin American markets have been ravaged in 2016, with Brazil expected to continue to see double digit declines. The sharp decline in Russia, which is affected by geopolitical conflicts and low energy prices, continues to affect CIS countries. The low oil price environment has taken a toll on cement demand in the Middle East and North Africa region, with Iran expected to be a standout performer. An overall slowness in cement volumes was recorded in many
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emerging markets, with some countries seeing important decreases this year. CW Research made major revisions on their previous forecast, which reflects a reversal of fortunes in particular cases. In the postBrexit United Kingdom, for instance, there is a strong demand growth expected, at least for the remainder of this year, with demand for cement expected to prove resilient to the Leave vote. Saudi Arabia has seen a downward revision, due to the fact that the government is considering writing off an important number of project, in the housing and infrastructure sectors. Turkish cement demand was affected by the post-coup risk situation in public construction, while in Italy, the fragile state of the economy prevents significant improvement in construction activity. On the flip side, a number of countries saw upwards revisions, when compared to the previous forecasts. In the UAE, for example, growth in the construction sector drove a demand increase, with growing capacity utilization rates leading to a reduction in unitary costs. In India, a stronger construction growth and a focus on housing and infrastructure investments led to a positive revision. Similarly, the buoyant housing market, and the promising economic outlook in Pakistan made the CW Research analysts
to reconsider their previous demand expectations. China also saw a positive revision, with the evolution of the local market surprising everyone. This is predominantly due to the government stimulus in the first
In essence, the overall picture in terms of global cement volumes has not changed dramatically. CW Research analysts continue to predict the global (ex-China) cement consumption to expand 3.8% per year on average through 2021. Per capita cement consumption is also expected to see a single digit increase in 20162021. Overall, the global (exChina) market is showing growth, being predominately led by three major regions: Asia (ex-China), North America and A f rica.
The global (exChina) cement consumption is expected to expand through 2021
About the report The CW Group’s Global Cement Volume Forecast Report (GCVFR) is a twice-yearly update on projections for cement volumes on a national, regional and global level. The forecast provides global and regional outlooks, as well as detailed perspective on 55+ of the world’s most important countries’ cement consumption, production, net-trade and cement production capacity. The five-year outlook presented in this benchmark study enables industry professionals to shape their perspective on markets and business priorities.
quarter of 2016, with the authorities stating that they are prepared to intervene again, should that be needed for a boost in the sector.
Global capacity additions are expected to slow down, being primarily driven by the contraction in China. The Asian country accounts for about 56 percent of the global cement production capacity, a significant and influential portion, and with China’s efforts to eliminate outdated capacity, global numbers are said to drop over the next five years.
The Global Cement Volume Forecast Report has two updates a year: Extended (October): an extended update (includes briefs on the 55+ key markets with principal supply-demand impacting drivers and CW Research's analyst market assessments presenting a detailed numerical worldwide analysis, as well as the regional and global supplydemand model). Quantitative update (March): a March each year quantitative update (only includes the numerical sections of the report, not country write-ups).
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FEATURE
Product optimization
moderniz and While cement makers face unprecedented pressures to decrease their carbon footprint, product optimization and innovative solutions throughout all phases of production are key to survival in a highly commoditized, competitive business. 24
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zation d technology www.cemweek.com
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FEATURE ement, the key ingredient of con- price. The one certain outcome of these co-innovation process with acclaimed crete, is the world’s most widely two strategies, of course, is to accelerate contemporary architects. Taking a lead from the fashion industry where celebrity used building material. It’s also the commoditization process itself. designers are influential trend-setters, Italthe product of an energy-intensive process that accounts for about five per- But commodities imply customers. And cementi targeted famous architects in its cent of global greenhouse gases driving cli- where there are customers there can be bid conquer the behaviors and choices of mate change. Producers face unprecedent- differentiation. And where there is differ- the mass of architects. ed pressures from regulators to decrease entiation, there can be innovation. their carbon footprint, while operating in a One such example is the series of innova- That was the case of the pioneering Dives in Misericordia church highly commoditized industry. As a result, product opti- Covering 15% of visible urban surfaces with products in Rome. Commissioned by the Vatican mization and innovative soin 1998 and inauguratlutions throughout all phases containing TX Active would enable a reduction in ed in 2003, this project of production are key to sur- pollution of approximately 50%” sealed Italcementi’s vival in a highly competitive partnership with the business. Producers are well aware that they need to be creative at both tion presented by the Italcementi Group, American architect Richard Meier. Meier’s ends of the cycle: from early production the Italian headquartered company which design for this symbolic structure called for is one of the world’s largest cement produc- the use of extraordinary concrete, offering stages to end-product recipe and design. ers. Perhaps drawing on a national affinity not only durability, but also a long-lasting Modern times call for modern for design, Italcementi has rediscovered brilliant white color. In order to satisfy this cement as the raw material of architectural need, the Italcementi perfected TX Active, cements Companies in commoditizing industries beauty, transforming a drab, gray powder a photocatalytic white cement with selftend to follow one of two strategies: ei- into a technologically advanced and aes- cleaning properties based on a technology that had been investigated years before, but ther they try to find new services to offer thetically sophisticated building material. never before developed. Italcementi has achieved this through a around the product or they compete on
Dives in Misericordia Church, in Rome, Italy
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Heidelberg Cement's plant in Lixhe, Belgium
TX Active is a photocatalytic principle In a large city such as Milan, researchers The new patented products like TX Active for cement products which can reduce have calculated – on the basis of test results and i.light are expected to account for 30% organic and inorganic pollutants that are – that covering 15% of visible urban sur- of Italcementi’s total turnover by 2018. present in the air. Its effectiveness has faces with products containing TX Active been thoroughly tested and thus certified would enable a reduction in pollution of From thrashes to ashes by research centers such as CNR, ARPA, approximately 50%. Technology innovation starts early in the Ispra Research Center. Its formulation is production phase, producers have been the result of 10 years of research, tests and Another example is the Italian Pavilion for looking for ways to optimize each stage applications carried out by CTG, Group the Shanghai World Expo in 2012, designed of the cement manufacturing process. Technical Centre, a company in the Cement producItalcementi Group which has led to Not only does the alternative fuel displace carbon- tion is responsible the final formulation of the active for around 5% of principle. Italcementi will make emitting fossil fuel consumption, the reduction of global CO2 emisthis material available to the whole sions, much of it landfill waste emits less methane construction sector. produced by the burning of fuels Since its first utilization in Rome, such as petroleum coke or coal in the calthe development and improvement of this by Giampaolo Imbrighi. This project called cination process that turns limestone into type of cement has been relentless; if the for cement walls able to filter light. Ital- clinker. Almost twice as much CO2 is acearly cements were effective in keeping the cementi took on the challenge and for the tually produced by the calcination reaction surfaces clean, the level of photo activity of first time developed a transparent, light- itself. The industry has had to find ways to the new Environment Line is such that it transmitting material called i.light. With reduce the CO2 output. abates the organic and inorganic substanc- over six million visitors in five months, the es responsible for air pollution. building became a permanent fixture.
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FEATURE In December 2014, the International Finance Corporation (IFC) invested €6.0 million alongside Lafarge and Proparco to support the use of municipal household waste to fuel Lafarge’s cement plant located in Northern Iraq. By using trash as an alternative fuel, Lafarge contributed to reducing its reliance on fossil fuels and benefited local communities by reducing air and water pollution generated by the poorly constructed landfill currently in use. The project kick started the construction of a modern new landfill and waste treatment facility in the municipality of Sulaimaniyah, located in the Kurdish Region of Iraq, where waste will be processed into refused derived fuel for cement kilns. Not only will the alternative fuel displace carbon-emitting fossil fuel consumption, the reduction of landfill waste will emit less methane, a greenhouse gas even more harmful than carbon dioxide. IFC, Proparco and Lafarge Industrial Ecology International, Lafarge’s subsidiary specialized in developing and operating waste to alternative fuel projects, plan to make more investments around the world aimed at demonstrating how the cement industry can reduce energy costs and environmental impact.
Italian Pavilion for the Shanghai World Expo
9 years. CO2 emissions were reduced by 3.4% for processes with Pay Back Periods The race to capture CO2 of less than two years, and up to 5% for In Europe, in order to reduce energy conPay Back Periods of less than 9 years. The sumption and CO 2 emissions, the inenergy efficiency gap, that is, the lack of dustry is focusing on increasing the use deployment of all potential improvements of clinker substitutes in at hand, independent cement, the use of alterof the decision critenative fuels and energy In Europe, the industry is focusing on increasing the rion considered (the efficiency measures. New payback period, the research is aimed at as- use of clinker substitutes in cement, alternative fuels net present value or the sessing the cost-effective- and energy efficiency measures internal rate of return) ness of several other enrequires a conducive ergy efficiency measures, policy environment including modifications to the reaction ‘wet’ facilities to ‘dry’ facilities, which re- that combines support for both technology chamber (kiln), recycling waste heat and quire half as much energy. When all meas- development and its deployment. carbon capture and storage (CCS) of CO2 ures with Pay Back Periods of less than two from the waste gases. Cost-effectiveness years were considered, total energy con- The results also demonstrate that recycling was estimated using a computer model sumption (across all cement facilities) de- waste heat is close to being cost-effective to calculate how long it would take for the creased by 9.2%. This figure was 10.8% for as the market price of electricity will afsavings from each measure to match the Pay Back Periods of less than three years, fect the decision on investment. The procost of the initial investment, known as the and 15% for Pay Back Periods of less than ject’s required minimum electricity price
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Pay Back Period. The model individually assessed 477 kilns in 294 production facilities within the European Cement Association. For some measures, the Pay Back Period was less than a year. This included converting kilns from traditional
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direct separation. The process has the potential to capture more than 95% of process carbon dioxide, says the consortium. Other consortium members include Heidelberg Cement, Cemex, Tarmac, Lhoist, Amec Foster Wheeler, ECN, Imperial College, PSE, Quantis and the Carbon Trust. The consortium will contribute a further €9 million towards the project.
plant in Lixhe, Belgium. The pilot unit will then undergo two years of extensive testing in a standard operational environment.
Studies agree that the benefits of carbon capture and storage to human health and ecosystems, from reduced climate change related impacts, considerably outweigh any negative impacts from using the technology. NevertheCalix’s technology Cement production is responsible less, energy re-engineers the is required existing process for around 5% of global CO2 to drive the flows to capture al- emissions CCS technolmost pure carbon ogy, which dioxide with no can lead to additional energy costs or environmental other environmental impacts. impact. Under the process, kiln gases are kept separate so that they are not in direct The urgency of climate change accontact with the limestone. Instead, the tion means that there is little ground limestone is heated indirectly via a special for further delaying implementation of steel vessel. The carbon dioxide released at least the most cost-effective measures. from the limestone can therefore be sepa- First steps could include encouragement rated in an almost pure form. for phasing out ‘wet’ facilities, say the researchers. The use of alternative raw During the first three years of the research, materials and fuels and the decrease of the process will be tested at a demonstration clinker to cement ratio are also likely to plant constructed at the Heidelberg Cement influence the industry in the future.
to make a worthwhile investment would be €0.08 per kWh. Cement production could be an ideal candidate for CCS, since the concentration of CO2 in the waste gases is very high. But at present, CCS is far from being cost-effective (this is dependent on factors such as electricity and CO2 allowance prices ) and it is not expected to be available before 2025. One such project is the EU funded initiative started by a consortium of cement interests, which will test a new technology to capture carbon emissions from cement and lime production. The consortium, the Low Emissions Intensity Lime And Cement (LEILAC), secured €12 million in funding over five years from the European Commission Horizon 2020 Grant program. The consortium is led by Calix, which developed the technology called
In northern Iraq, Lafarge recovers energy from the municipal waste generated in the Sulaimaniyah metropolitan area
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CEMENT MARKETS
CW Research
CEMENT VOLUMES Cement demand and output have increased year-on-year in Cyprus, by 12% and by 52%, respectively. This is likely due to a touristic boom, coupled with a drop in housing prices and strong domestic demand for cement. Public infrastructure projects are being developed, as well as touristic infrastructure such as hotels. Overall property sales have increased, as well as housing investment.
Saudi Arabia’s cement output expanded by 6.7%. demand following as cement sales were 5.7% higher on a yearly basis.
Argentina’s cement production dropped in July 2016 by 18.1%, when compared to the same month in 2015. Prices for building materials including cement, bricks, pipes, lime and aluminum, have increased, while demand in the country fell by 20.4%. Employment across the construction industry has also been dropping, mainly due to decreasing investments in infrastructure projects, both public and private. These are the lowest rates of construction activity recorded ever since the start of the data gathering, in 2007. Saudi Arabia’s cement output expanded by 6.7%. demand following as cement sales were 5.7% higher on a yearly basis. Exports to other markets in the Middle East have remained strong, with Qatar being the most prominent. Qatar will host of the World Cup in 2022 and they are seeing investments in several infrastructure projects.
Thailand’s overall cement production dropped by 1.9% year-on-year in July 2016 due to the weak demand, which decreased 3.3% YoY. The market didn’t experience any significant decreases in construction activity, likely indicating a seasonal drop in demand for the building material. Cement production in China increased by 1.3% in July 2016 compared to the same month last year, in part due to strong activity in the housing market, promoting several private and public construction projects in the Republic. Japan saw a yearly rise in production of 2%, while demand fell by 4.4%. Despite this, demand will likely rise, as the government has issued construction bonds for the first time in four years to provide a stimulus to the sector, investing in public works. Private construction projects have also picked up, with housing investment remaining steady particularly in more urban areas, such as Tokyo. Peru witnessed a drop in demand of 1% YoY in July 2016, but its cement output grew by 2.3% as compared to the same month last year. The construction sector has been making a slow but steady recovery compared to 2015 numbers, and representatives from the housing and building materials market remain optimistic that 2016 will be a positive year for the industry. Cement Production July 2016 – YoY change (%)
Cement Demand July 2016 – YoY change (%) 20%
50%
10%
30%
Source: CW Research
Source: CW Research
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Cyprus
Vietnam
Ukraine
Saudi Arabia
Peru
India
Japan
China
Belarus
Italy
Thailand
Russia
Cyprus
Indonesia
Saudi Arabia
Pakistan
Peru
Thailand
Japan
Brazil
Ecuador
-30%
-30%
Argentina
-10%
-20%
Argentina
10% -10%
CW Research
CEMENT PRODUCTION (million tons) Country
LM
MoM (%)
CEMENT CONSUMPTION (million tons) YoY (%)
YTD
YTD (%)
LM
MoM (%)
YoY (%)
TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION.
TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION.
WWW.CEMWEEK.COM/SUBSCRIBE
WWW.CEMWEEK.COM/SUBSCRIBE
CEMENT PRODUCTION MOM (%)
TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION.
TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION.
WWW.CEMWEEK.COM/SUBSCRIBE
WWW.CEMWEEK.COM/SUBSCRIBE
LM
YTD
YTD (%)
YTD
YTD (%)
CEMENT CONSUMPTION MOM (%)
CEMENT EXPORTS (million tons) Country
Country
CEMENT IMPORTS (million tons) MoM (%)
YoY (%)
TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION. WWW.CEMWEEK.COM/SUBSCRIBE
YTD
YTD (%)
Country
LM
MoM (%)
YoY (%)
TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION. WWW.CEMWEEK.COM/SUBSCRIBE
CEMENT EXPORTS MOM (%)
CEMENT IMPORTS MOM (%)
TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION.
TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION.
WWW.CEMWEEK.COM/SUBSCRIBE
WWW.CEMWEEK.COM/SUBSCRIBE
Source: CW Group analysis estimates MoM: month vs previous month; YoY: month vs same month last year; YTD: year-to-date; YTD%: year-to-date vs previous year
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CEMENT MARKETS
Volume variation analysis for selected countries that are major consumers, producer, importers and exporters of cement. This is a selection of notable markets. Additional detail is available from CW Research as well as on-line at http://www.cemweek.com to the market data section.
CEMENT ENERGY MARKETS
CW Research
Energy Prices Update COAL: The average coal price for July 2016 closed at $59.66 per ton, falling 2.1 percent YoY as
compared to July 2015’s price of $60.96 per ton. It decreased by 0.5 percent when compared to June 2016’s price of $59.95 per ton.
Steam Coal FOB Average Prices (us$/ton) US exported
Colombia exported
Australia Newcastle
Indonesian HBA
South Africa Richards Bay
110
90
70
Global trading volumes for six major coal countries decreased to 66.76 million tons in July 2016, declining 16.1 percent in comparison with the 79.58 million tons recorded in June 2016.
50 Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul ’12 ’12 ’12 ’13 ’13 ’13 ’13 ’13 ’13 ’14 ’14 ’14 ’14 ’14 ’14 ’15 ’15 ’15 ’15 ’15 ’15 ’16 ’16 ’16 ’16 Sources: EIA, Colombia Ministry of Mines and Energy, IMF, Indonesia Ministry of Energy and Mineral Resouces
COAL TRADING VOLUMES: Global trading volumes for six major coal countries decreased to 66.76 million tons in July 2016, declining 16.1 percent in comparison with the 79.58 million tons recorded in June 2016. An increase in coal trading volumes occurred in Australia, whereas Indonesia, Russia, United States, Colombia, and South Africa all showed volume declines in the month of July.
PETCOKE: US petcoke exports decreased by 2.4 percent to 3.34 million tons in July 2016 when compared to the previous month, and up by 28.0 percent as compared to July 2015. The US export price for petcoke for July 2016 closed at $43.39 per ton, increasing 7.2 percent as compared to June’s price of $40.48 per ton and down 31.3 percent when compared to July 2015’s price of $63.20 per ton.
US Petcoke Export Price (us$/ton) 70
Rolling 12-month average
50
30
J ‘16
J ‘16
M ‘16
A ‘16
F ‘16
M ‘16
J ‘16
D ‘15
N ‘15
S ‘15
O ‘15
J ‘15
A ‘15
J ‘15
A ‘15
M ‘15
F ‘15
M ‘15
J ‘15
D ‘14
N ‘14
S ‘14
O ‘14
A‘14
J ‘14
10
Source: customs data
NATURAL GAS: The US Henry Hub spot price traded at $2.82 per MMBTU in July 2016, up 8.9 percent as compared to June 2016 and down 0.7 percent
as compared to July 2015’s price of $2.84 per MMBTU. Price in Europe increased 9.8 percent MoM, reaching $4.50 per MMBTU in July 2016.
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Volume variation analysis for selected countries that are major importers and exporters of coal and petcoke. This is a selection of notable markets. Additional detail is available from CW Research as well as on-line at http://www.coalweek.com/ to the market data section.
COAL - EXPORTS (million tons) - Apr 2016 Country
LM
MoM (%)
PETCOKE - EXPORTS (million tons) - Apr 2016 YoY (%)
YTD
YTD %
Country
LM
MoM (%)
YoY (%)
YTD
TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION.
TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION.
WWW.CEMWEEK.COM/SUBSCRIBE
WWW.CEMWEEK.COM/SUBSCRIBE
YTD %
COAL EXPORTS MoM (%) US PETCOKE EXPORTS PRICES MoM (%)
TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION.
TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION.
WWW.CEMWEEK.COM/SUBSCRIBE
WWW.CEMWEEK.COM/SUBSCRIBE
COAL - IMPORTS (million tons) - Apr 2016 Country
LM
MoM (%)
YoY (%)
YTD
TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION.
YTD %
PETCOKE - GLOBAL EXPORT PRICES (USD/ton) - Apr 2016 Country
COAL - GLOBAL EXPORT PRICES (USD/ton) - May 2016 LM
MoM (%)
YoY (%)
YTD
TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION. WWW.CEMWEEK.COM/SUBSCRIBE
COAL EXPORT PRICES MoM (%)
MoM (%)
YoY (%)
YTD
YTD %
TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION.
WWW.CEMWEEK.COM/SUBSCRIBE
Country
LM
WWW.CEMWEEK.COM/SUBSCRIBE
YTD %
NATURAL GAS PRICES (US$/mmBtu) - May 2016 Country
LM MoMIN (%)THE YoY (%) YTD TABLE AVAILABLE CEMWEEK MAGAZINE PRINT EDITION.
YTD %
WWW.CEMWEEK.COM/SUBSCRIBE NATURAL GAS PRICES MoM (%)
TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION.
TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION.
WWW.CEMWEEK.COM/SUBSCRIBE
WWW.CEMWEEK.COM/SUBSCRIBE
Source: CW Group analysis estimates LM: latest month Jan 2016 except where specified; MoM: month vs previous month; YoY: month vs same month last year; YTD: year-to-date; YTD%: year-to-date vs previous year
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CEMENT ENERGY MARKETS
CW Research
DEPARTMENTS
PEOPLE Ciments du Maroc has a new General Director Ciments du Maroc, part of the HeidelbergCement group, has appointed a new business manager as company director. Nabil Francis was named the new General Director of the company after an administration council meeting on July 19. Mr. Francis began his mandate on the first day of September, replacing the former director, Mario Bracci. Mr. Francis is a civil engineer qualified by the National Institute of Applied Science, in France. He has been with the Italcementi Group, now part of HeidelbergCement, since 1998, having worked in several countries for the company, including Sri Lanka, Egypt, and Bulgaria.
LafargeHolcim announces changes to the Executive Committee LafargeHolcim announced changes to its Executive Committee reflecting the evolution of the portfolio, following recent divestments and a transition to the next phase for the company as it closes the integration phase. As such, Pascal Casanova, currently responsible for the Latin America Region, will take responsibility for North America including Mexico. Roland Köhler, currently responsible for the Europe Region will add Australia, New Zealand and Trading to his responsibilities. Martin Kriegner, currently responsible for India, will join the Executive Committee and take additional responsibility for South East Asia. Oliver Osswald, currently responsible for our operations in Argentina, will join the Executive Committee with
responsibility for Central and South America. Furthermore, the company also announced that Alain Bourguignon and Ian Thackwray have decided to pursue new opportunities outside the group. As of August 5, 2016, the Executive Committee, chaired by Eric Olsen, is composed of the following members: Urs Bleisch, Group Head of Performance & Cost; Pascal Casanova, Region Head North America including Mexico1; Roland Köhler, Region Head Europe & Australia/ New Zealand & Trading1; Martin Kriegner, Region Head India & South East Asia2; Gérard Kuperfarb, Group Head of Growth & Innovation; Caroline Luscombe, Group Head of Organization and Human Resources; Oliver Osswald, Region Head Central & South America2; Saâd Sebbar, Region Head Middle East & Africa; Ron Wirahadiraksa, Chief Financial Officer.
The new director will also assume responsibility for Ciments du Maroc’s operation in Mauritania.
Saudi Arabia: City Cement appoints new members in Governing Council
Nabil Francis
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Saudi Arabia-based City Cement has appointed Badr bin Omar bin Sulaiman Al-Abdullatif as Managing Director of Governing Council. Badr bin Omar bin
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Sulaiman Al-Abdullatif will hold the position of managing director for three years, starting from June 19, 2016. The company will also appoint members in several committees including, Audit Committee, Nomination and Remuneration Committee, Executive Committee of City Cement.
PEOPLE New CEO appointed by CRH Romania Former CEO Costin Borc has stepped down from the leading position at CRH Romania. He will no longer act as CEO of the company as he was appointed Deputy Minister of Economy within the Government of Romania. The position he vacated is filled by Gustavo Navarro. Prior to joining the CRH Group, Argentinian Gustavo Navarro worked for over a decade in the construction materials industry in Southeast Europe and Russia. Previously, he held senior positions in multinational companies in the pharmaceutical and packaging industries.
Vicat appoints a new president
Dangote Cement appoints new director Nigeria-based Dangote Cement has appointed Dorothy Ufot as independent non-executive director. “I am proud that Dorothy Ufot, SAN, has become the first woman to serve on Dangote Cement’s board. She brings formidable legal skills and business insights that will strongly enhance the company’s governance. Her appointment represents a positive step forward in our goal to improve the diversity and functioning of our board,” said Aliko Dangote, Chairman of Dangote Cement. Ms. Ufot is one of
Bureau de Cimbéton has appointed Gregory Douillet as its President. Gregory Douillet will succeed Roberto Huet as President of the firm. Mr. Douillet joined the French cement company in 1994.
Saudi Cement’s board member, Dr. Ghassan Ahmed Al Sulaiman has resigned form the board, due to personal reasons.
Rising through the ranks, he became director of alternative fuels and raw materials, cement, before becoming sales director, France. He is also a director of various other companies. The new president is planning to increase the customer base of the company and he is also planning to launch a new brand of cement for its customers.
The Board of Directors has accepted the resignation and appointed Turki bin Abdullah bin Abdulaziz Al-Rajhi to replace Dr. Ghassan Ahmed Al Sulaiman. AlRajhi holds a bachelor degree in Industrial Management, from the King Fahd University of Petroleum and Minerals. He will be serving in the board at least until the end of the current session, cycle
Titan Group has a new chairman Takis Arapoglou is the new chairman of the Titan Group. Arapoglou will succeed the former chairman and main shareholder, Andreas Kanellopoulos, who was part of the board of directors since 1971 and chairman since 1997. The group’s CEO, Dimitris Papalexopoulos, showed optimism following the inauguration ceremony. Papalexoupoulos expects positive results from the expanding activities of the group
Dorothy Ufot
most experienced legal practitioners and has more than 26 years’ experience in commercial litigation at trial and appellate levels, having been admitted to the Bar in 1989 and she was made a Senior Advocate of Nigeria in April 2009. She also qualified as a chartered arbitrator from the Chartered Institute of Arbitrators, London in 2003.
Saudi Cement announces resignation of board member
in the US market, and a slight recovery on the Greek front. Growing margins are also expected on the Egyptian and Turkish markets. The company is looking for new business opportunities in the developing world, including Africa, Middle East, and Latin America.
in December 31, 2017. Headquartered in Dammam, Saudi Cement is one of the largest cement companies in the middle east region and has a market realization of SAR 14.7 billion.
Dr. Ghassan Ahmed Al Sulaiman
India: UltraTech announces resignation of directors UltraTech Cement announced the resignation of two board members, R.C. Bhargavaa and Rajiv Dube. The two directors announced that they resigned due to personal reasons and other commitments. R.C.Bhargave was an independent director and Rajive Dube served as a Non-Executive Director on the company’s board of directors. The company accepted the resignations, which are effective from July 20, 2016.
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regional report
EUROPE, MIDDLE EAST AND AFRICA Iranian cement makers wait for Iraqi market reopening Iranian cement makers continue to expect a reentrance into the Iraqi market. Earlier this year, Iraq decided to impose a ban on Iranian cement imports into the country, giving the necessity of increasing cement quality and protecting local manufacturers as an excuse. Iraq is currently facing several challenges, including a downturn in crude oil prices and military turmoil with Daesh occupying its northern regions. The state has tried to focus foreign currency reserves to buy military equipment, and that can also be seen as a reason for the ban. Iran continues to be the largest cement producer in the Middle East, but the internal construction sector is experiencing a downturn and export markets like Africa seem like a good opportunity at first, but the long distances and the transport costs end up rendering those unprofitable. For that reason, the country continues to make efforts to reenter the Iraqi market. The Iran-Iraq Joint Chamber believes that, as soon as the current internal conflicts in Iraq are resolved and the its economy begins to grow again, Iranian cement will be needed for reconstruction efforts and to resume infrastructure project that have since been halted.
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East Africa cement market may witness major changes East African cement market is likely to benefit from East African Council of Ministers to reduce duty on cement imports from non-EAC countries from 35 percent to 25 percent. The lower import duties are expected to lead to an increase in competition, as the foreign
Portugal: Cement demand continues sluggish Low demand for cement in the Portuguese market impacts local companies Cimpor and Secil. The two companies operate six cement plants in the country, with the capacity to produce 10 million tons of cement. During the first semester of 2016, the country consumed only 1.3 million tons, 4.9 percent less than in the same period last year. Portugal used to consume much larger quantities of cement. In the year 2000, demand for cement reached 11 million tons, but now cement consumption has
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players would enter the market. The region remains an attractive investment hub due to its high economic growth rates compared with sub-Saharan Africa averages. The existing cement companies are likely to invest in capacity expansion. The two factors, new market entrants and capacity expansion are expected to create price wars in the region. fallen to 1970 values. Secil and Cimpor were also affected by a decrease in exports. Angola, an important market for Portuguese exports, is facing a dire economic situation due to falling crude oil prices. During the first six months of 2016, Secil lost 22.2 percent of its export volume, while Cimpor declined by 40 percent.
regional report Zambia: Construction market may witness growth Zambia’s construction market is expected to witness a tremendous growth in the second half of the year. “The market environment in the second half is expected to continue to be challenging on both pricing and volumes, although the end of the electoral period in Zambia may bring
Belarus to invest in alternative fuels for cement production The Belarusian Council of Ministers approved the creation of facilities destined to produce alternative fuels from municipal solid waste, which will then be used to power cement plants. Minsk wants to reduce the volume of waste disposal at the same time it contributes to reducing costs of cement manufacturing. By using more than 1.1 million tons of municipal solid waste, or
Vostokcement to supply cement for Khabarovsk Airport Vostokcement, through its Spasskcement plant, will supply cement to renew the runway strip at Khabarovsk. The strip, 3.5 kilometers long and 60 meters wide, will be constructed with 500-D0-N Portland cement from
back some growth in the construction markets,” said Mr. Rigaux, CEO of Lafarge Zambia. Meanwhile, Lafarge Cement continued to operate despite difficult conditions in the market in the first half of the year. The company significantly reduced costs in the first half of the year, from K200 million to about K38.2 million, despite additional power costs.
around 26 percent of the waste produced in the country, Belarus hopes to reduce its reliance on imported energy sources like coal and natural gas. If everything follows the present plan, construction will be finished by 2020, after an investment of around EUR 134 million.
Tanzania: Cement players to file grievances to gov't Tanzanian cement companies are told to file complaints with the government, which then can be assessed to solve business constraints. The Minister for Industry, Trade and Investment, Charles Mwijage said, "Let's reason together so that we can build our case that I can defend to the government." Earlier, management of the Tanga Cement Company had complained to the government about influx of cheap imported cement products in the market which was subjecting local cement producers to unfair competition. The company also challenged the decision made by the government to ban coal imports that was making the cement plant incur extra costs for thermal power to run their turbines. The cement companies collectively opposed the permit on cement imports, when the local cement companies had sufficient capacity to fulfill the demand. The move is also expected to create unfair competition in the market.
Alternative fuels are expected to contribute with 33.6 percent of the fuel needs from cement plants. By then, coal’s share in the energy mix will fall from 62.6 to 34.2 percent, while natural gas will go from 10.2 to 3.9 percent. Spasskcement. The project will also include other structures like a rainwater drainage network and a track for taxi. Reconstruction is expected to be finished by end 2017. When completed, the runway will be able to accommodate all types of aircraft, including the Airbus A380. Traffic at the airport is estimated to increase from the current 2 million passengers to 4.7 million per annum.
Lafarge Iraq signs agreement for cement transport Lafarge Iraq has signed an agreement with General Company for Land Transportation (GCLT) to transport cement. The contract is valid for one year and can be extended for the next five years. The contract is the largest contract received by GCLT, owned by Iraq’s Ministry for Transport. The cement company is a subsidiary of LafargeHolcim Group.
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SOUTH EAST ASIA India: Andhara cement producers may face challenges The Confederation of Real Estate Developers’ Associations of India (CREDAI) Andhara Pradesh has alleged cement cartelization and has threatened to go on a strike. President of CREDAI AP, A. Siva Reddy explained, “For the past 15 days, the cement companies have not been despatching cement creating artificial scarcity. Now, a bag of cement is being sold at around Rs. 350 against the normal price of Rs. 230.
India: Cement makers to benefit from gov't contracts
10 percent, approximating them to the market price.
Base bids for cement sales to the Indian government are now closer to the market value. Cement has been sold to government projects at a bulk procurement discount, resulting in lower margins for cement makers. The government also set fixed prices for new road projects for three years. Prices were now allowed to hike by
Large cement markets have committed 3 percent of its total capacity for state projects. UltraTech is reportedly the highest bidder in new road projects, but others like Shree, JK Lakshmi, JSW, Lafarge, and Century among some smaller players in the South are presenting more competitive bids.
They formed a syndicate to create this situation and the State and Central governments need to intervene and take action.” The officials have made inquiries with neighboring states and found that the price of per bag cement of imported cement is around INR 60 per bag lesser than the cement price hike in the region.
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China: Steady profit increase in Xinjiang cement market China’s Xinjiang cement market is expects to reach its target of reducing losses by 50 percent. The region is expected to record a steady increase in profits due to structural adjustments. The region is expected to benefit from structural changes in the market. The authorities implemented around 19 initiatives in the region in a bid to improve the profitability of cement marker. The cement companies have managed to effectively deal with
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backward capacity to 30 million tons of cement. The cement market is showing signs of improvement since April 2016.
regional report
Jidong Inner Mongolia Cement faces production disruption Production at Jidong’s Hohhot Yuguan griding plant was halted after a disagreement with local authorities. Jidong’s grinding plant in the Hohhot Yuquan District was halted by the Hohhot Yuquan District Environmental Protection Bureau last June.
and the local government have been in disagreement regarding an order of relocation by the local authorities and the respective compensation that Jidong is entitled to.
Production was immediately suspended and Jidong was fined for CNY 100 million. Some rumors, however, claim that the fine had nothing to do with environmental questions, and that it was a form of pressure by the local government over the business. Jidong
India: Ramco Cement to file an appeal to COMPAT India-based Ramco Cement will file an appeal in Competition Appellate Tribunal (COMPAT) against the order of Competition Commission of India (CCI). The appeal is against CCI’s decision to impose penalty of INR 258.63 crore for alleged cartelization. CCI has imposed a penalty on the alleged artificial increase in cement prices and deciding the demand and supply of cement in the market. CCI has given a time limit of 60 days from the date of receipt of the order to deposit the penalty amount. "The company proposes to go on appeal to COMPAT against the order of CCI," said an official from the company.
India: Fly ash use promoted in agriculture NTPC, an Indian energy company, is promoting the use of fly ash in agriculture. According to the NTPC, if farmers used about 5 percent of the fly ash produced in India in agriculture, it could extend crop yields, and improve food security, as well as show a significant
China: Hainan plans to eliminate backward capacity by 2017 The Hainan province in China is likely to eliminate two million tons of cement of grinding capacity by the end of 2017. Officials plan to eliminate backward production capacity and excess, saving 530,000 tons of coal, reducing carbon dioxide emissions by 3.19 million tons, sulfur dioxide emissions by 2,197 tons, as well as emissions of nitrogen oxides. Furthermore, 5,670 acres of land will be vacated for social and ecological environmental benefits. Several officials believe that successful elimination of backward capacity will further strengthen the cement sector as the officials are planning to several measures.
Nepal: High cement imports despite sufficient capacity
Nepal's cement market is struggling with cement imports despite sufficient production capacity. The country is importing cement due to lack of certification for high cement grade. However, recently Nepal Bureau of Standards and Metrology has been preparing to amend the certification provisions that were set in 1995.
The region has around 46 cement plants, out of which two are owned by the government. Together these cement plants have a production capacity of seven million tons per year. Meanwhile, the region also plans to minimize the cost of cement production. The move is expected to increase the volume of cement export in the near future.
GDP growth. The first tests were made in several farms and fields in the vicinity of NTPC power plants, under the guidance of agriculture scientists. Results show that fly ash provides essential nutrients to the soil, increasing crop yield. Fly ash usage also reduces pest incidence in crops and mitigates CO2 emissions.
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regional report
ASIA PACIFIC Vietnam: Foreign players seek larger market share The Vietnamese paper and pulp market has witnessed a significant increase in market share controlled by foreign players to around 60 percent. “Compounding the problem is the fact that many Chinese set up ‘straw companies’ in Vietnam hiring a local person to act as the owner on behalf of the true Chinese owners,” said Huynh Van Hanh, general director of the Handicraft and Wood Industry Association. The director opines that the domestic producers need to focus on research and development activities, and investing and adopting new technology. The domestic sector has failed to invest in improving expertise of the employees and increase their productivity. In the first seven months of 2016, total revenues for the forest industry rose by 0.8 percent to USD 3.8 billion, as compared to the same period a year earlier. Meanwhile, several domestic players are small players and do not have funds to conduct research and development activities, or invest in modern equipment.
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Japanese researchers study Mayenite cement Researchers are trying to better explain the special properties of a smart type of cement called mayenite. The product, also known as C12A7, is a special type of cement capable of assuming several roles, including those of insulator and transparent conductor.
modeling, researchers were able to detect small changes in the its components that explain its crystalline properties. When oxygen atoms are removed from Mayenite, it goes from insulator to a transparent conductor, a very unique feat. This happens because the oxygen leaves behind electrons, which create a material known as electride.
Until now, scientists were not sure why Mayenite was able to become a semiconducting glass. Thanks to a new research that took advantage of computer
Scientists from the Tokyo Institute of Technology have successfully created glass from Mayenite, an important step for its commercialization.
Indonesia records boost in cement exports The Indonesian cement market recorded a 50 percent increase in cement exports to 1.5 million tons in 2016, as compared to the same period earlier. The exports are increasing rapidly due to rising oversupply of cement and new entrants in the market. According to Indonesia Cement Association (ASI), Indonesia recorded a 63.5 percent increase in
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exports 833,000 tons of cement in the first seven months of 2016, as compared to the same period a year earlier. In 2016, the cement market witnessed capacity addition of around 14 million tons of cement, with arrival of six new cement companies. The region is reaching the level of saturation of cement production in the market. The rising exports are directed to Vietnam, Thailand, Japan, South Korea, and China market.
regional report Philippines: Eagle Cement, Northern Cement to increase production Eagle Cement and Northern Cement, both part of the San Miguel conglomerate, are increasing their production capacity. The two Philippine cement plants are increasing their capacity in response to a rising demand in the local market. Currently, the two companies produce six million tons of cement per annum, with Eagle cement accounting for four million tons. Eagle Cement operates in the Luzon region, not yet covering the entire region, while Northern Cement covers other regions outside Eagle’s scope. The two companies have a very strong presence in the regions of Visayas and Mindanao. Expansion will allow the companies to expand their presence on a growing market. Eagle Cement is currently selling 40-kilogram cement bags for PHP 232 per unit, relatively low compared to other brands that sell it for PHP 238-240 per unit.
Indonesia goverment considers investment moratorium for cement sector Fearing an excess of cement production, the Indonesian Ministry of Industry is considering imposing a moratorium on investments in the sector. According to the Ministry, demand and supply for cement should remain stable for the next five years. For that reason, a moratorium on investments would start in the next three to five years and would be applicable both to domestic and foreign investors.
Sulawesi with 8 percent, and Kalimantan and Bali and Nusa Tenggara, both with 7 percent. Cement exports have dropped by 19.3 percent during the first half of 2016, to 208,000 tons. In the last years, cement production rose by 20.2 million tons, while consumption rose only by 4 million tons. These figures are the biggest case for a moratorium on investments.
Cement production in Indonesia is currently concentrated in Java, where 56 percent of the capacity is mounted, followed by Sumatra with 22 percent,
Thailand: SCG upgrades customer services
Japan imports Russian coal for cement kilns Coal produced in the Russian region of Sakhalin was delivered to Tomakomai, in Hokkaido, Japan, for use in the cement industry. 6,000 tons of coal were delivered as part of an experimental batch to be used by Japanese cement manufacturers. Until now, Japanese cement plants used coal from Australia and Indonesia, but after a visit by Russian signatories to Japan, several deals were signed to ship coal from much-closer Sakhalin to Hokkaido.
Thailand cement company SCG has revamped three key platforms including SCG Building Materials website, the SCG Contact Centre, and the SCG Experience Store, its flagship store in Bangkok. The website, scgbuildingmaterials.com, consolidates all the information that was previously assigned to around 50 product websites of the group. The company has spent more than THB 20 million on a major renovation of the 6,200-square-metre SCG Experience
Store, which showcases popular housing trends. "Customer-centricity is our bottom line. For us, customers come before sales and profit, since we believe that if customers are satisfied, sales and profit will follow," said Nithi Pattarachoke, vice president for the domestic market of SCG CementBuilding Materials. “SCG would use the feedback it gathers from these customer touch points to develop and improve its products and service,� added Nithi.
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regional report Canada: BC promotes the use of Portland-Limestone Cement
AMERICAS McInnis Cement breaks ground at U.S. terminal McInnis Cement executives celebrates officially breaking ground at the new cement company’s first U.S. terminal in the Port of Providence. The overall cost of the project is expected to reach USD 22 million when completed, estimated for this coming winter. The Providence terminal, a deep-water port that provides access to large, ocean-going ships, will serve the entire New England construction market, including the metropolitan areas of Providence and Boston, as well as the rest of Massachusetts, Rhode Island and Connecticut. McInnis will deliver ships with payloads of over 30,000 metric tons to the Providence terminal from the company’s plant in Port-Daniel–Gascons, Canada. The terminal’s facility will have the capacity to load about 100 trucks
Peru: Grupo Gloria to finance construction of a road The company will contribute to the completion of Yura-La Joya road. Peru’s Grupo Gloria will participate in the financing for the completion of YuraLa-Joya road, through a public-private partnership. The road project is valued
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and around 10 railcars per day with cement. “We are proud to commence construction of our first terminal in the United States in the Port of Providence,” said Jim Braselton, Senior Vice President, Marketing, Sales and Distribution for McInnis Cement. “Thanks to the partnerships we’ve developed with state and city officials, our high-quality product will be able to efficiently and dependably reach customers throughout New England – an area that currently and routinely in the past has had challenges with reliable supply.” Construction will begin shortly on the existing ProvPort warehouse, which will be transformed into a world-class receiving and storing facility. McInnis Cement will also build a modern rail and truck station for loading purposes.
at around PEN 700 milllion, for the completion of 40 kilometers of the road. The company has already conducted meetings with other investors for the project. The company believes that their participation will help completing the project sooner, and facilitating the transport of cargo from one place to another.
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Canada's British Columbia launched the Climate Leadership Plan, which includes an important directive regarding the cement sector. The Canadian province will promote the use of Portland-Limestone Cement, under the new plan, for concrete used in public infrastructure. This measure will reduce greenhouse gas emissions by 10 percent compared to the use of regular Portland cement. The President of the Cement Association of Canada has already congratulated British Columbia on this occasion. He stressed that the province’s cement sector has a long history of being “a leader in innovation”.
Colombia: Government programs boost cement demand Colombia’s cement sector is benefiting from higher cement demand due to several government proposed construction projects in the region. "Ensuring an effective role of the Government, with current housing programs, makes buildings maintain a good momentum. It is a sector that is still active and will continue to grow," said Elsa Noguera, Minister of Housing, City and Territory. On an annual basis, the production of ready-mix concrete has increased by thee percent to 8.4 million cubic meters. The increase in concrete production is due to increase in housing construction projects.
regional report
Boral doubles TruExterior Siding & Trim capacity Boral boosts polymer-fly ash siding and trim capacity at a Salisbury, N.C., plant. This comes after the recent addition of a 120,000-sq.-ft. finishing facility, at the site. “Unprecedented market interest and adoption of Boral TruExterior is driving a rapid expansion in our dealer and distributor base,” said Plant Manager Ken Bruns. “By adding equipment and [20-plus] employees, we’re ensuring a steady supply of siding and trim across all profiles to meet the needs of existing and new end users,” he continued. Light Building Products
Division President Brian Below added that “This investment is consistent with Boral’s strategy for growth in the U.S., leveraging our innovative platform to help transform the business.” The move comes after a rapid growth in demand and distribution.
Mexican researchers use fly ash in cement production
Researchers from the Technological Institute of Saltillo, in Mexico, developed a new cement mix made from industrial
TITAN CEMENT ACQUIRES STAKE IN CIMENTO APODI Titan Cement announced that it has concluded an agreement to acquire an equity stake in Companhia Industrial de Cimento Apodi, operating in the state of Ceará in Northeast Brazil. The company will be jointly owned and controlled on a 50/50 basis by the Dias Branco Group and a Titan/Sarkis vehicle (94 percent owned by Titan). Titan’s investment is estimated at USD 100 million, but the final amount will be determined at closing.
Kentucky approves coal ash plant In Kentucky, U.S., the Public Service Commission approved compliance plans totaling nearly USD 1 billion, so that the state's largest utility companies could close and cap coal ash ponds. Kentucky Utilities will spend USD 675 million to meet new federal environmental requirements for coal ash ponds at five sites. Louisville Gas & Electric will spend more than USD 300 million to cap ash ponds at Mill Creek and Trimble County generating stations. The two firms are the largest utility companies in the state, combining for about 900,000 customers.
waste. Specifically, researchers used fly ash from metallurgical coal used in the kilns to produce cement. This new method brings environmental and financial benefits, by cutting costs while reducing waste. Researchers say that the use of fly ash in cement making does not impact human health, because this kind of waste from kilns does not contain heavy metals. This mixture cannot, however, be used to produce conventional Portland cement because worldwide standards do not allow it. With this investment, Titan expands its geographical footprint into a new region, entering a market with longterm potential, joining forces with local partners and investing in state-of-theart assets.
"Banco de Materials" continues to distribute cement in Mexico In the Monclova region, in Mexico, the “Banco de Materials” program is witnessing a large demand. Officials within the program have already asked for more trucks to handle the large volumes required to supply demand for the program. Vouchers for affordable cement have been distributed to families in the region, with the equivalent to 17,000 cement bags already distributed. Cemex is the company responsible for providing the necessary cement. Each family is given a maximum of 10 cement bags with the cost of MXN 85 per unit.
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BMWEEK.COM
CONSTRUCTION & BUILDING MATERIALS BY BMWEEK.COM FLY ASH USE, MANDATORY IN INDIA In India, the state of Maharashtra has made it mandatory for all new buildings to be constructed using materials containing fly ash. The authorities aim to dispose of the entire amount produced across the state, avoiding pollution or any health hazards. “We have made it compulsory for all new construction in the vicinity of 300 kilometers of any power plant in
the state to use construction materials containing fly ash. Considering Maharashtra’s area and the location of power plants, this will cover the entire state,” said a senior official with the state public works department. He added that “The new decision will enable Maharashtra to become completely free of fly ash.” The state produces three million tons of fly ash every year, of which only about 60 percent is currently being used.
KENTUCKY APPROVES COAL ASH PLANT In the state of Kentucky, in the US, the Public Service Commission approved compliance plans totaling nearly USD 1 billion, so that the state's largest utility companies close and cap coal ash ponds.
The two firms are the largest utility companies in the state, serving about 900,000 customers.
Kentucky Utilities will spend USD 675 million to meet new federal environmental requirements for coal ash ponds at five sites. Louisville Gas & Electric will spend more than USD 300 million to cap ash ponds at the Mill Creek and Trimble County generating stations. 44
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UK DEALS WITH BRICK SHORTAGE According to a study by the National Association of Estate Agents, the UK is in dire need of 1.4 billion bricks destined for the construction of 264,000 new housing units to help curb the housing crisis currently affecting cities such as London and Manchester. Brick supply dropped between 2008 and 2013, but recovered partially in 2014 and 2015. Despite this, several British construction businesses still experience a waiting period between 2 to 8 months for building materials. UK’s Brick Development Association, however, claims there is no problem with supply and that production has actually increased during the past 15 months.
US CONCRETE ACQUIRES READYMIX CONCRETE PRODUCER US Concrete has acquired the assets for Kings Ready Mix, a ready-mix concrete producer in the New York area. Kings Ready Mix has four operating ready-mix concrete plants and a fleet of 62 mixer trucks throughout the state of New York, being based in Brooklyn. The producer typically serves construction projects in the New York metropolitan area, including Queens, Manhattan and Brooklyn. US Concrete is a ready-mix concrete and aggregates producer based in the United States.
BMWEEK.COM
CHINA: CNBM AND SINOMA TO UNDERGO MERGER In China, two state-owned building materials providers have started merger preparations. According to the Assets Supervision and Administration Commission, China National Building Materials Group Corporation (CNBM) and China National Materials Group Corporation Ltd (SINOMA) will be reorganized in the latest consolidation of China's stateowned enterprises (SOEs).
equipment and engineering service provider, with total assets amounting over CNY 430 billion (USD 64.51 billion), while Sinoma is also an industry leader in the non-metal materials sector. The Chinese authorities aim to improve the companies' competitiveness through the reorganization process.
CNBM is one of the world's top nonmetal materials manufacturer, cement
SAUDI ARABIA: DOZENS OF READY-MIX PLANTS RISK CLOSING 2017 may be the year when over 70 plants of ready-mix cement will close, due to the recession hitting the construction sector in Saudi Arabia. Despite government attempts to set the price for ready-mix concrete, SAR 240 per ton and SAR 14 per bag, the recession is still harming the industry. The Jeddah Chamber of Commerce and Industry (JCCI) claims
INDIA: FLY ASH TO BE USED FOR ROAD CONSTRUCTION The Indian government is looking at industrial wastes as a cheap and lasting alternative to construct new roads. The Goa State Technical Agency (GSTA) is planning to use materials such as fly ash, char waste or slag as a base in road construction in order to curb the bleeding of hills and loss of green cover in rural Indian roads. "The use of char waste can not only prevent destruction of green hills due to excavation of hill slopes for resources to construct roads, but also save a lot
that manufacturers need to decrease prices by 50 percent to allow operations to continue. Some plants have already ceased production in order to cut costs, and others may follow in 2017, with initial forecasts placing the number at more than 70. The market’s downtrend started due to lack of demand for ready-mix projects in Saudi Arabia. of money to the government," says K G Guptha, GSTA chairman, and head and professor of the Goa Engineering College. Several construction works have already been undertaken, such as the construction of a nearly 12km western bypass between Nuvem and Navelim, as well as other projects. Early tests and research on the mix show both binding qualities and parameters are satisfactory; roads where this method was used show minimal damage after 4 years being exposed to torrential rainfall and heavy duty trucks.
CANADA: HIGHER DRYWALL PRICES DUE TO IMPORT TARIFFS A new federal drywall tariff of up to 267 percent on drywall or gypsum board coming from the United States is driving prices up. Several builders and suppliers warn against a supply disrupt of the boarding used for walls and ceilings, threatening the completion of residential, public, and commercial projects. Contractors operating under fixed-price contracts could also go bankrupt. A particularly concerning project is the Fort McMurray rebuilding effort, after a fire destroyed thousands of buildings earlier this year, which could be severely hindered by this tariff. Preliminary tariffs were imposed on September 6 on gypsum board coming from the United States, for use in the provinces of British Columbia, Alberta, Saskatchewan, Manitoba, and the Yukon and Northwest Territories. Canadian producers have also legislated rights to seek protection from dumped imports through the duties. One of the main reasons for the US imports is due to the limited supply of CertainTeed gypsum in Western Canada. The decision will be under review for the next three months, and the tariff will remain active until then.
SIKA OBTAINS US CONCRETE FIBER PRODUCER Sika acquired FRC, a concrete fiber manufacturer based in Tuscaloosa, Alabama. FCR is a producer of synthetic polypropylene and steel fibers for concrete, a growing market in the US. With this new acquisition, Sika hopes to accelerate its growth in the US market. Sika is a multinational group focused in the development and manufacture of systems and products for the construction and automotive industries.
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PETCOKEWEEK.COM
PETCOKE PRODUCTION, SHIPPING AND PRICING BY PETCOKEWEEK.COM US: SAUDI COMPANIES BID FOR PETCOKE REFINERY Saudi Aramco and Motiva Enterprises are competing to acquire LyondellBasell’s Houston refinery in the United States. The 268,000 barrels a day refinery is estimated at USD 1.5 billion. So far, the leading contenders are Saudi Aramco and Motiva, but there were several other potential offers being evaluated by the company.
The Houston refinery is one of the largest in the North American territory, and it processes mostly heavy crude oil to produce gasoline and other components, diesel, jet fuel, and petcoke. The refinery had several setbacks during 2016, starting with a fire that caused it to cease production and cut profit for the parent company.
REPSOL TO INVEST IN PETCOKE PRODUCTION Spanish oil company Repsol is investing EUR 7.5 million improving its Puertollano industrial complex in Spain.
some extra equipment in order to improve production.
The main improvements will consist in the modernization of its petcoke-producing equipment, the refinery’s coking unit. The upgrade is aimed at improving the unit’s security and output. The maintenance works are scheduled to take place in 2017. The company will also be investing EUR 75,240 at its Fertiberia complex to install 46
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COAL INDIA BENEFITS FROM HIGHER PETCOKE PRICES Coal India’s August output may have been affected by the heavy rainfall in the country, but several branches seem to be stabilizing, in part due to the increasing demand caused by higher petcoke prices. Production decreased 10.4 percent year-on-year, to which weak demand in the power and other end-use sectors contributed. However, the company highlights that this is a common occurrence, and demand should pick up in the second half of the year. The company’s e-auction premiums over the notified price for the spot was 18.8 percent in July, compared to 16.5 percent in June. The blended e-auction realization decreased 9 percent month-on-month (INR 1,481/ ton), but was mainly due to changes in subsidiary mix. The year before, demand had eroded due to several companies switching to petcoke, a cheaper fuel, but rising prices have caused some of them to switch back to coal, leading the company to forecast a surge in demand and prices. Thermal imports also declined by 10 percent month-on-month during August in India, as per provisional data.
PETCOKEWEEK.COM RUSSIAN REFINERY TO START PRODUCTION Antipinsky refinery in Russia has plans to install a delayed coking tar to produce petcoke, first commissioned in June. The tests of the equipment have been successful and the plant has already produced the first coke. The Antipinsky plant produces diesel fuel of the “Euro 5” standard, and the company annual processing capacity is 9 millions tons of oil. 2016 has been a great year for the company, both in the produced quantities as with the quality of the final products, and in 2017 there are plans to start producing “Euro 5” standard gasoline.
INDIA PLANS USD 3 BILLION INVESTMENT AT REFINERIES State-owned Chennai Petroleum will receive USD 3 billion in funding from the Iranian government to expand its business. Iran has a stake in Chennai, a subsidiary of Indian Oil, and the investment is aimed at increasing capacity by 30 percent over the next six years, in order to supply the country’s surging need for fuel. New equipment will also be acquired, with the Manali refinery, the largest of the company, receiving USD 560 million in funding for the construction of a delayed coking unit, as well as a new crude oil pipeline. Furthermore, the project is aimed at improving product quality. Chennai Petroleum is owned by Indian Oil, Naftiran Intertrade and National Iranian Oil. The company’s earnings have increased during the last few months due to higher demand.
INDIA: FUEL PRICES MAY ERODE CEMENT COMPANIES’ MARGINS IN Q2 Rising petcoke prices could impact profit in the second quarter of the fiscal year in India for the cement companies that switched fuel to petcoke. Petcoke’s lower price made it attractive for cement companies that decided to switch from thermal coal, and were able to increase profit margins in the previous quarter.
stockpiled the cheaper fuel, and may switch back to coal once their petcoke reserves end, if coal prices drop from the current high pricing. A lull in the industry has increased cement prices throughout the country. Petcoke prices have risen from USD 45 per metric ton to USD 81 per metric ton in August.
According to several experts, margins are going to decrease hereon, but it is difficult to say when, as many companies
AZERBAIJAN RESUMES PETCOKE PRODUCTION
The Baku Oil Refinery, named Heydar Aliyev Oil Refinery, has resumed its petroleum products after a temporary shutdown due to scheduled repair works. After the successful implementation of maintenance operations, the unit’s equipment is back into commission. The coking equipment has also restarted commercial production. The catalytic cracking, primary processing and catalytic reforming facilities have also restarted. The maintenance works are part of a gradual reconstruction and
modernization plan, expected to continue until 2019-2020. Among the scheduled works, implementation of technical servicing operations and analysis of conditions of equipment were performed. The refinery is the only in the country, and meets the entire demand of petroleum products for Azerbaijan, exporting 45 percent of its output. Besides petcoke, Heydar Aliyev Oil Refinery also produces aviation kerosene, diesel fuel, automotive gasoline, and black oil, among others.
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EQUIPMENT
EQUIPMENT Nepal’s Shubhashree Agni Cement orders new mill Nepal’s Shubhashree Agni Cement Udhyog ordered Loesche’s Vertical Roller Mill LM 35.2+2CS, the first ever order in Nepal for Loesche India. With this order, Loesche India is now looking to further penetrate the market. Shubhashree Agni Cement Udhyog has placed an order for Loesche Mill LM 35.2+2CS for the cement grinding section of their integrated plant (of 700 tpd) which is under construction at Jaluke-6, district Arghakhachi, Nepal. The scope of the order includes a mill fan and a metal detector. The mill, designed for grinding Portland Slag Cement, will produce at a capacity of 62t/h with a fineness of 3500 Blaine. The mill will also produce Ordinary Portland Cement and Portland Pozzolana Cement at capacities of 60t/h and 76t/h respectively. The mill shall be delivered in a period of 10 months.
Philippines: Republic Cement develops new variant of cement Philippines-based Republic Cement has developed a new variant of cement, “Kapit-balay”, which is suitable for rehabilitation of houses. The cement company considers it to be a brown field investment. The highlight of the new product is a high performance premium pozzolan cement with fly-ash
Russia: Yakuttcement invests in third cement kiln Russia-based Yakuttcement is midway through the construction of third cement kiln at its plant, reports Rucem. The company has planned to invest around RUB 400 million in the cement plant. The company has completed the work on the foundations of a smokestack, exhaust fans, electrostatic precipitators. They also completed the foundations under the frame of the building and the mill cement grinding unit. The new cement kiln is
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for dense concrete structure. “The new mill in Barangay Bigte in Norzagaray strengthens our company’s sustainability initiatives through the implementation of environmentally responsive manufacturing processes,” said Sunico Renato, CEO of Republic Cement. The cement company has a production capacity of seven million metric tons per year, making it the second leading cement manufacturer and supplier in the country after Holcim Phillipines.
likely to have a production capacity of around 67,000 tons. The new investment is expected to have a positive impact on the company, as it will improve production capacity of the mill.
EQUIPMENT
Saudi Arabia: Eastern Province Cement receives new hydraulic breaker The Saudi company Eastern Province Cement Company (EPCC) received its new hydraulic breaker from Atlas Copco Middle East. The HB 10000 hydraulic breaker will be the first of its kind to operate in the region. The breaker is mounted on a Komatsu PC 1250 excavator.
impressive force will be used to break down hard limestone deposits at EPCC’s quarry. Work conditions on the site are worsened by temperatures that can reach up to 51 degrees Celsius. EPCC is a main cement and clinker manufacturer from Saudi Arabia. The company was established in 1982.
The equipment weights 10 tons and is capable of applying a force of 16,000 joules on a single impact. This
Soboce is in final stage of upgrade
Sociedad Boliviana de Cemento (Soboce) has begun installing the new vertical mill at its plant in Vaichan, Bolivia. The modernization project is a part of
Illuminati LP 12 project, under which the company is developing and modernizing an important cement plant. The vertical mill having model number as OK 36-4, is manufactured by FLSmidth. At present, Viachan cement plant has the largest installed capacity for production of clinker and cement, exceeding 900 tons per year. Meanwhile, the Illuminati project will further increase the production capacity by 136 percent, reaching to two million tons per year.
He added that, "Our vertical mill is the best market for cement grinding and Rotax-2 furnace need not be aligned regularly and provides a high refractory life." The company also supplied two
Calucem installed a new packaging line for high-alumina cement. Beumer supplied the new equipment to the company. The managing director of the company, Alfred Blažina explained, "Up until now, we had used systems that were energy-intensive and high in maintenance. Calucem employees were responsible for changing the filling system from one cement mixture to another, which was never a trouble-free process. Depending on its composition, the material can be more fine or coarse.“ He added, “After a mixture change, large amounts of dust were generated, meaning material was lost. In search of a new solution and a suitable business partner, we were led to intralogistics expert Beumer. Our product has very specific properties. We needed a supplier who we could develop a solution with for our particular product." Beumer technicians installed a filling machine with two spouts that operates according to the air-filling principle. This particular material can be finer than regular Portland cement, but it can also be pulverized or gritty. The operation of the new equipment is customized to the company’s requirements. Beumer was involved from the start to the end of the project, and will also help the company with regulat maintenance activities of the new machine.
Bolivia: Equipment delivery to Fancesa’s cement plant FLSmidth has completed the delivery of equipment to Fancesa’s planned modern cement plant in Sucre. "[The cement plant] will be one of the most modern and efficient in the world, with low consumption of energy and a friendly operation environment," said Felipe Arango, Sales Manager of Cement division of FLSmidth.
Croatia: Calucem invests in new packaging for cement
bases of Rotax-2 kilns, which are easy to install and have a smaller footprint implantation. The equipment will help optimizing overall equipment efficiency, production costs, while facilitating operation with less risk. The cement company signed the contract with FLSmidth, to supply equipment and machinery, for a project of around USD 77 million.
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Flashback NEWS FLOW IN CEMWEEK.COM LAST TWO MONTHS (darker blue shows higher news volume)
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cw group agenda / reports The CW Group will be hosting and participating in a number of webinars and conferences. We invite you to join us on-line or in person at the events to discuss our views of the industry. To learn more, please visit http://research.cwgrp.com/meetings
CW group meeting agenda include: September 28, 2016
Global Cement Outlook 2H2016
October 11, 2016
Global Cement Trade Prices 3Q 2016
October 19-20, 2016
Cement Business & Industry South Asia 2016
January 26-27, 2017
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CW Group’s Cement Finance, Strategy & Trade Summit Americas 2016 Miami, USA
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Global Cement Volume Forecast Report (GCVFR)
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TOP BMWEEK STORIES activity 1. India: Maharastra looking to fine tune coal IRAN ash policy 2. 3.
India to make sand an 'essential' commodity Carmeuse starts calcium lime exports from Oman 4. Oman cement sector not struggling with oversupply 5. Fly ash use, mandatory in India 6. India: NTPC opens ash brick unit 7. BASF opens concrete admixtures plant in Sri Lanka 8. Researchers make bricks out of used cigarettes 9. Indian construction industry to increase use of steel 10. KPCL encourages the use of fly-ash in India
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CW Research: India petcoke production increases in June 2. Petcoke gasification plant put on hold 3. Goa carbon produces over 10,000 tons of petcoke in July 4. Asia freight rates seen picking up 5. Ultratech cement ends quarter with positive earnings 6. India to increase coking coal imports in 2016 7. India: higher petcoke prices likely to boost coal sales 8. Tajikistan ramps up coal production 9. Indian cement maker to stop using petcoke as its fuel source 10. Shree cement posts first quarter results
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China: CNBM to acquire stake in Eurocement LafargeHolcim to divest stake in Holcim Vietnam 3. Lafarge France uses tires to produce cement 4. Anhui Conch Cement inaugurates Myanmar cement plant 5. Iranian cement makers affected by Iraqi tariffs 6. Korea: Hahn & Company acquires entire stake in Ssangyong Cement 7. Germany: Schelklingen to see addition of new cement kiln 8. LafargeHolcim Maroc Afrique eyes SubSaharan markets 9. Panama: Cemex to invest in alternative fuels 10. Russia implements new cement standards
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