CemWeek Magazine (vol.1 / issue 35) by CemWeek

GLOBAL CEMENT INDUSTRY. KNOWLEDGE.

OCTOBER / November 2016

Q&a: LEADERS

Working together towards change

TERRA MELHOR, BRAZIL

CW RESEARCH:

Lime consumption going strong FEATURE:

New record for coal ash recycling FEATURE:

Equipment industry highlights News

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Analysis

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Market Coverage

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Interviews

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People Moves

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EDITOR’S NOTE Letter from the publisher and editor

THE FUTURE IS CLOSER THAN WE THINK

The cement industry and the complementary sectors are heading towards a sustainable, eco-friendly and cost-efficient future.

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 As environmental pressures and competitiveness dominate the cement industry, green processes and cost efficiency become key concepts for producers. Reaching a sustainable future requires efforts from both cement makers and authorities. Terra Melhor experts discussed possible measures and solutions for the Brazilian market, in the second part of an exclusive interview for CemWeek Magazine. The equipment sector naturally follows the trends observed in the cement industry, shifting its focus towards innovation and the emerging markets. While traditional suppliers are still highly regarded, competition from new entrants in the market, especially in Asia, forces them to reduce production costs and to minimize emissions. The coal sector also faces unprecedented pressure from authorities, with many countries around the world having already implemented plans to phase out coal in the near future. In the U.S., more than half of the coal ash produced in 2015 was recycled, surpassing the 50 percent utilization levels, for the first time in history. This issue of CemWeek Magazine also covers 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.

Gabriel Burete Content Editor and Online Cooridnator

content editor and online cooridnator

PRASHANT SINGH RALUCA CERCEL STEFANA ABICULESEI Ana Catarina Almeida Tea Vukicevic silviu stefanescu Sara Ruas CONTRIBUTING WRITERS & RESEARCHERS

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contents FEATURES 4 Q&A Leaders: Working together towards change We discussed sustainability and environmental issues in the Brazilian cement sector, with experts from Terra Melhor. Read the second part of an exclusive interview. 10 Cement equipment industry and its latest offerings The equipment industry benefited from expansion, optimization or even maintenance plans and strategies, signing important contracts with cement companies in the last few months. 15 Cement Business & Industry South Asia 2016 The 13th edition of the annual Cement Business & Industry conference brought together executive professionals representing the most relevant countries in the region. 20 New record for coal ash recycling More than half of the coal ash produced in the United States in 2015 was recycled, for the first time breaking through a 50 percent utilization level

10 20

28 Lime consumption going strong CW Researchâ&#x20AC;&#x2122;s outlook for the global for quicklime, slaked lime and hydraulic lime markets, through 2021.

DEPARTMENTS 1 EdiTor's letter The future is closer than we think 3 numbers in brief Global gray cement and clinker seaborne trade 32 research Cement Volumes Cement Energy Markets 36 people People on the move

46 Construction & building materials by bmweek.com Construction and building materials update 48 PETCOKE PRODUCTION, Shipping, and Pricing by petcokeweek.com Petcoke industry news update

regional reports 38 Europe, Middle East & Africa 40 South-East Asia 42 Asia Pacific 44 Americas

August / /September OCTOBER November2016 2016

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50 Equipment Equipment and notable projects 54 cw group meeting agenda CW Groupâ&#x20AC;&#x2122;s upcoming events 55 BUZZ Top 20 CemWeek and BMWeek stories

numbers in brief

Global gray cement and clinker seaborne trade Seaborne trade volumes subdued at the global level

Global seaborne cement trade is largely controlled by cement companies that operate exporting and distributing cement plants, or by owners of bulk receiving cement terminals and grinding facilities. Seaborne shipping of gray cement is possible through different modes of transportation. For bulk cement, bulk carriers or specialized cement carriers with unloading and loading systems are used throughout the world. Currently there are more than 300 cement carriers around the world, and they are used for fly ash shipping as well. In parts of the world, such as in Scandinavia, bulk cement can only be transported with cement carriers due to environmental concerns. CHART: Gray cement seaborne trade (mn tons, %)

Million tons

YoY ( %)

Gray cement

100

20.0% 10.0%

2010

2011

2012

2013

2014

2015

-10.0%

Source: CW Research

In 2015, global seaborne trade of gray cement surpassed 80 million tons, with about five percent less than the volume registered in 2014. The volume includes the amount of cement shipped via the Great Lakes and intra-regional trade. CHART: YoY ( %)

Gray cement

Million tons

5.0% 50

2010

2011

2012

2013

2014

2015

-5.0%

Source: CW Research

Clinker sea-based trade is largely targeting importing regions such as West African countries (Ivory Coast, Ghana, Cameroon), as well as Asia-Pacific markets such as Malaysia, Indonesia, Australia and Myanmar. In 2015, total seaborne clinker trade topped 50 million tons, decreasing by about 2 percent when compared to 2014â&#x20AC;&#x2122;s volumes. www.cemweek.com

OCTOBER August //September November 2016

Q&a: Leaders

Working together

chan

towards PART II

We discussed sustainability and environmental issues in the Brazilian cement sector, with experts from Terra Melhor. Read the second part of an exclusive interview. 4

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nge

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OCTOBER August //September November 2016

Q&a: Leaders Q: Various authorities have introduced legislation and incentives (such as CO2 taxes, quarrying and extraction tax, etc.) in order to regulate and reduce the activities of the industrial sectors most responsible for greenhouse gas emissions. However, the rate of increase in emissions continues almost unabated as a result of population growth and increased industrialization and economic activity in developing countries, notably in Latin America. What other measures do you think authorities should implement, in order to reduce environmental impact?

In Brazil the public policy is still being developed to promote a low carbon economy, there is a lot in discussion but little yet implemented. The WBCSD Cement Technology Roadmap gives some additional suggestions that will support the cement industry in reducing its environmental impact, some of which we've already mentioned: Promote the adoption of best available efficiency technologies for new and retrofit kilns; Encourage and facilitate increased alternative fuel use; Encourage and facilitate increased clinker substitution; Facilitate the development of carbon capture and storage (CCS); Ensure

and Development (R&D) capabilities, skills, expertise and innovation; Encourage international collaboration and public-private partnerships on technology implementation.

It is the final point that merits some attention. Often, in countries like Brazil what is lacking is knowledge about possible environmental friendly technologies and measures that are preventing their adoption and implementation. Exchange between countries, especially in the frame of a PPP can be very beneficial to overcome NIBMY and other barriers of this type, accelerating or even first allowing the adoption of environmental friendly technology and measures.

Q: Despite the incremental improvements in process efficiency that have been adopted by the cement industry in recent years, OPC production is still responsible for around 6% of all manmade global carbon emissions. Do you expect a shift towards ecological building material with the end-usersâ&#x20AC;&#x2122; increasing awareness of the industryâ&#x20AC;&#x2122;s environmental impact?

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. predictable, objectives and stable CO2 constraints and energy frameworks on an international level; Enhance Research 6

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Whereas the cement industry is responsible for 5% of the full impact of CO2 emitted by man, we observe a

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situation of comfort in the Brazilian market because we have the lowest rates of CO2 emissions compared to world indexes. Thus, there is little room to further reducing these emissions, emerging the usage opportunity of alternative fuels that demonstrate the best path for reduction. The trend of urbanization is still unbroken and people need safe buildings and working infrastructure. And this can so far only be ensured with artificial stone, which is concrete. Still, the endusers will demand that the material be as environmentally friendly as possible. Cement is but a fraction of the overall building material but it needs to be produced as environmentally friendly as possible. All the previously mentioned measures help in this sense. What is often forgotten however, is also that the building material's share to the total c-footprint of a building is small.

Energy consumption during the building's lifetime has a much more important contribution and here concrete can help owing to its properties. So end-users

Although the responsibility of the public cleaning services is municipal, national regulations redefine the responsibilities both of the society

Hubert Baier

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.

should also consider energy-efficiency measures in buildings and in particular in their design.

Q: How do you see the future of MSW in Brazil? Is the local market heading towards sustainability?

and the private sector, in particular with the introduction of selective collection, reverse logistics, recycling of household waste, composting organic waste and the generation of renewable energy from biomass and biogas. These objectives are set out in the legislation, resulting in strong tendency for the market development of sustainable waste management.

The application of the provisions of the Solid Waste National Policy brought a new system for waste management in the country, especially regarding the introduction of technologies for waste managing. The Policy imposes a series of new activities that must be implemented in the short and medium term not only to the adequacy of current practices to the Law, but mainly for conservation of natural resources and climate change mitigation. Thus, the new legal framework incorporates awareness of wealth and possible potential in waste management, while also reveals the errors and omissions that have accumulated over the past 30 years. The rules established in the legislation end with the duality of the old system collection-disposal, entering in the waste stream certain obligations that require greater technical complexity and mainly the introduction of technology in the sector.

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OCTOBER August //September November 2016

Q&a: Leaders

The motivation to implement a sustainable waste management can be ratified through the public-private contracts that have been signed during the period 20102015, over 17 with a life time of 20-35 years and representing a year generation

in public policies of municipalities and private policies of large generators, but with a massive potential to promote the development of secondary resource market and the industry of waste recovery technologies.

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.

of 8,000 t/d or almost 3,000,000 tons per year. The average waste characterization demonstrates a potential of 46 % of RDF fractions, meaning 1,380,000 t/y. These figures demonstrate that actions to recover waste are quite unpretentious 8

August / /September OCTOBER November2016 2016

The medium-term should see an increase in tariffs for primary resources where this rise in prices of primary inputs will leverage the recovery of secondary resources elapsing a clear profitability in treatment plants. This trend is reinforced by other markets that dialogue intrinsically with

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waste recovery, such as oil and metals or steel, which stand as the first by-products to ensure the economic viability of recycled raw materials. Therefore, the development of the market for secondary materials will be turned in the medium term, to replace primary resources and also promote electricity produced by biogas and the refuse derived fuel (RDF). A combination of factors, such as the lack of an industrial park attending to the demands of technologies for waste recovery, the lack of technical knowledge, the economic valuation of primary resources and as a result of secondary, high energy value and dependence of the Brazilian market in hydroelectric power, and especially the obligation to provide waste recovery as consequence of the new law, sets new horizons for the management of waste, generating opportunities for new business. Besides all these mentioned opportunities and challenges, the

domiciliary waste management competence is public, it means that will be necessary to seek guarantees from the public administration for purposes

and training partnerships, employ media for the purpose of disseminating and democratizing information, establish institutional arrangements for the sharing

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 Terra Melhor. of reducing the risks of discontinuity of the interruption of public policies, so all efforts for implementing a differentiated and sustainable waste management will not be compromised. The market for co-processing of tires in Brazil has changed completely in the last years. During its implementation the cement sector would receive a remuneration for using tires, while currently they need to assume 1/3 of the costs of logistics and co-processing of tires in order to gain access to these residues. This market change reinforces the idea that, despite not being its core business, the cement industry understands that the MSW has potential to be a source of renewable energy.

of experiences, promote conferences, seminars and technical workshops and facilitate access to discussions between

the technicians of the sector. Ultimately, we would make each citizen to become a multiplying agent. One important challenge in the MSW area remains the lack of funding at the top of the chain. In many countries people are not ready or willing to pay for proper garbage disposal services. This mentality is still hindering the development of proper MSW management systems. As a conclusion, to change traditional practices we need to open a multidisciplinary discussion integrating multiple market segments to enable the design of tools for the implementation of sustainable management of municipal solid waste.

Terra Melhor

Terra Melhor is an engineering company with a multidisciplinary dimension, created in order to bring new solutions and technologies for the treatment, management and disposal of municipal solid waste, to Brazil.

Q: What do you think are the biggest challenges that the global MSW and waste-toenergy sectors will face, in the near future?

Besides collecting all the plastics due to its omnipresence- , reducing its slow but tremendous environmental damage on land and sea, and especially building human capacities able to fulfill the technical requirements of this new market. This is where we should focus our efforts, form working chambers at all levels, introduce environmental education in a multidisciplinary and cross-sectional shape be it in formal or in the informal education. We should promote research www.cemweek.com

OCTOBER August //September November 2016

FEATURE

Cement equipment industry and its latest offerings

The equipment industry benefited from expansion, optimization or even maintenance plans and strategies, signing important contracts with cement companies in the last few months

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OCTOBER August //September November 2016

FEATURE n recent years, the cement industry has somewhat shifted its focus from the developed markets towards emerging markets, such as those in Asia, Africa, South America and even the CIS. While the German cement plant technology is still regarded as being at the top of the sector, globalization, as well as the growth trend in emerging markets, puts its pressure on traditional suppliers. Germany's Machinery and Equipment (M&E) sector is the second largest and most innovative industry sector in country, according to Germany Trade and Invest (GTAI). More than 6,419 companies employ around 1,000,000 workers – more than in any other industrial sector. In terms of revenue, mechanical and plant engineering is the second largest industrial sector in Germany. In 2015, the industry generated revenues of more than €230 billion. Moreover, the mechanical and plant engineering sector is the largest employer for engineers, employing 183,000 engineers in 2013, according to the VDMA. This represents around 17 percent of all the employees in this sector. However, the sector continues to be heavily exportoriented, with long-term average showing that around four-fifths of the products are supplied to international clients. And with new suppliers, especially those from China, entering the market with price levels well below the ones from Europe, traditional suppliers have naturally shifted their focus towards the challenging emerging markets.

Ten at one blow

In India, one of Gebr. Pfeiffer’s best customers, Kolkata-based Shree Cement, continued its expansion strategy to distribute several cement works (greenfield and brownfield) across the whole country and to produce cement in stand-alone grinding terminals. The cement producer ordered ten more mills from the German company. For the cement works, Gebr. Pfeiffer will supply MVR 6000 R-6 raw mills with capacities 12

August / /September OCTOBER November2016 2016

of about 550 t/h and an installed drive power of 6700 kW each. Moreover, these works will come equipped with coal mills of the type MPS 2800 BK, each featuring a 720-kW drive and an integrated high-efficiency classifier of the type SLS BK. Cement mills of the type MVR 6000 C-6 are planned to grind clinker and extenders in these cement works and/or stand-alone grinding terminals.

the high level of availability of Pfeiffer mills played a key role in the customer’s buying decision. The plants planned for cement grinding, using the MVR 6000 C-6, are to alternately produce 300 t/h of Ordinary Portland Cement (OPC) at a product fineness of 3100 cm²/g acc. to Blaine or 300 t/h of Portland Pozzolana Cement (PPC)

Traditional suppliers have naturally shifted their focus towards the challenging emerging markets The MVR mill with its 6 actively redundant grinding rollers has proven particularly successful for the finish-grinding of cement. Compared to other combined grinding systems, previously used by this customer, this system allows significant savings on electrical energy. In addition,

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containing as much as 35 % of fly ash at a product fineness of 3500 cm²/g acc. to Blaine or 180 t/h of ground granulated blast-furnace slag (GGBFS) at a product fineness of 4500 cm²/g acc. to Blaine. Each of the mills will come equipped with a 6700-kW drive.

The industry is forced to reduce production costs and to minimize emissions to contribute to an environmentally friendly sector,â&#x20AC;? said a spokesperson from Loesche.

A decision in favor of the environment In line with their sustainable development policy, Ecocem France has opted for another Loesche Vertical Mill, this month. The company ordered a LM 46.2+2 CS mill for their new cement plant in Dunkerque. The equipment is wellknown to the cement producer, as they have operated a similar mill for years, for

France recycles the secondary material, granulated slag, from the production of cast iron by the iron and steel industry. One of the unique advantages of Ecocem GGBS is the ability to significantly reduce the carbon footprint of concrete, the material most widely used for building and public works. According to Ecocem 1 ton of ground slag valued in the concrete industry avoids the emission of 900 kg of CO2 and extraction of 1.6 tons of clay and limestone. The LM 46.2+2 CS for the cement plant in Dunkerque is designed for the grinding of cement

The industry is forced to reduce production costs and to minimize emissions to contribute to an environmentally friendly sector dry-grinding of ground granulated blast furnace slag at their production plant in Fos-sur-Mer, Southern France.

While Gebr. Pfeiffer SE will supply the core components of the mill and the gear units from Europe, its Indian subsidiary, headquartered in Noida, Gebr. Pfeiffer (India) Pvt. Ltd., will provide the components such as the housings of the mills and classifiers, the steel foundation parts as well as the internal parts of the classifiers. In addition, the Indian subsidiary will design the plant layout and advise the customer on the equipment he will procure on his own.

Ecocem France stands for sustainable development and is the first independent producer of ground granulated blastfurnace slag (GGBS) in Europe. Ecocem

clinker and granulated blast furnace slag at a capacity of 105 t/h GGBFS. The gearbox will have a capacity of 3.150 kW. Not only the vertical roller mill, but also the complete mechanical equipment for the grinding plant starting from mill feed to the product discharge into the product silos is included in the Loesche scope of supply.

Competing with new suppliers means that the German plant manufacturers have to drastically reduce production costs, while also keeping in line with environmental regulations. â&#x20AC;&#x153;Globalization and the rising capabilities of the emerging countries certainly puts pressure on the well established suppliers. No doubt the new suppliers, especially those from China, are entering the market with price levels hardly ever realized by German suppliers, and they will also make progress with their quality. www.cemweek.com

OCTOBER August //September November 2016

FEATURE The LOMA heater type LF 28-L will be a full-inlined type designed to burn natural gas as well as blast furnace gas. The burner supplied by Loesche will be the well-known MSBZ type, complete with fitting rack and local switch cabinet. The lead time for the main components of the

The cement plant hopes to use house waste, with a high moisture content and a low burn value, as an alternative fuel. With that in mind, the Danish equipment maker installed a HOTDISCÂŽ pyro co-processing system that is estimated to burn around 300 tons of waste per day.

China's energy intensive industries, such as cement production, are coming under pressure from the government mill and for the additional units included in the scope of supply is 6 to 13 months in sequence to installation schedule. The commissioning of the vertical roller mill is planned for the mid of 2017. With Ecocem aiming to even further reduce their carbon footprint, Loesche helped with a very compact plant layout, that has been proposed and selected for the cement work in Dunkerque. With this compact plant layout favourable for the environment, it will moreover be possible to also lower the costs for steelworks and installation.

The unit, owned by China Resources Cement (CRC), currently produces around 3,200 tons of cement per day. With this new solution, the cement producer hopes to bring its contribution to finding a solution to Chinaâ&#x20AC;&#x2122;s growing waste problem. Around a third of all Chinese cities have noticed groundwater pollution from

This state-of-the-art grinding plant will be installed very close to Arcelor steelworks for use of their granulated blast furnace slag. This LM 46.2+2 CS will be the seventh Loesche vertical roller mill installation for slag and cement grinding in France, maintaining the companyâ&#x20AC;&#x2122;s leadership for this application in France as well.

Fossil fuels replaced with household waste, in China FLSmidth, together with Sino Environment Engineering Development (SEPETC), is developing solutions for alternative fuel use by Chinese cement makers. The company is currently working towards implementing a solution for the Hongshuihe cement plant, located in Binyang, in the province of Guangxi, for using urban and industrial waste safely in cement production. That would combat the increasing amount of landfill waste and reduce the use of fossil fuels in an energy intensive industry. 14

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waste disposal, and landfills across the nation are growing at an annual rate of eight percent. According to the FLSmidth manager for the Chinese market, Cyril Leung, "China's energy intensive industries, such as cement production, are coming under pressure from the government, that wants to rebalance the economy towards a less energy-hungry mode of growth, curb pollution and reduce carbon emissions. CRC plans to initiate several similar municipal solid waste co-processing projects for other cement producers with FLSmidth and SEPETC as partners." The equipment sector naturally follows the trends observed in the larger, cement industry. And sustainable, environmentfriendly and innovative seem to have been established as key concepts.

Report

Relevant insights from top industry stakeholders in the region

The 13th edition of the annual Cement Business & Industry conference and exhibition took place at the Hilton Mumbai International Airport Hotel, in Mumbai, India. The two-day event was hosted on October 19th and 20th, bringing together executive professionals representing the most relevant countries in the region. Variety and intelligence came together as Dubai, Germany, Iran, India, and Nepal representatives reunited to discuss the region’s most pressing issues in the coming year. CEOs, directors, managers, entrepreneurs, consultants, specialists and other key professionals in the area had the opportunity to receive cutting edge information, have access to the new trends and innovative techniques, share knowledge, develop new business connections and partnership opportunities and network with their peers. The conference highlighted various international overviews of the trends and challenges in the upcoming year. Cement Manufacturers Association (CMA) General Secretary, Mr. N A Viswanathan, offered the welcome keynote speech, highlighting the risks and opportunities stakeholders should expect in 2017. The conference followed a dual approach on both business, as well as technical developments. The business sessions included presentations from Mr. Prashant Singh, CW Group, who offered broad perspective on the cement markets. The session continued with focused overviews on the Iran and Nepal cement markets, delivered by Mr. Hamidreza Golshahi, Fars & Khuzestan Cement and Mr. Shiv Ratna Atal, Hongshi Shivam Cement. The Indian Chamber of Commerce, represented by Ms. Sharmila Bannerjee shared general statistics for the Indian market, discussing the positive long-term growth prospective of the Indian economy.

The technical sessions included insights into energy savings and emissions reduction solutions, introduced by Mr. Georg Rathwallner, Evonik Industries, followed by “Sustainable development use of fly ash”, presented by Mr. Vivek Taneja, Neptune Industries, and by Mr. Gautam Shah, JSW Cement who presented the “Use of composite and blended cements for durability and sustainability in constructions”, respectively. Mr. Purushottam Bedare, Calderys India Refractories, introduced the company’s refractory turnkey solutions and services. The logistics perspective of the event included presentations from Mr. RK Pandey, National Highway Authority, who outlined the current status of the National Highways Development Project (NHDP), and Mr. Atul Kulkarni, Indian Ports Association, who discussed details of the Sagarmala Program, stressing the

like New policy framework favors cement kiln co-processing for use of wastes as AFRs, presented by Mr. Ulhas Parlikar, Geocycle India and the “Reduction / control of suspended particulate matter in cement industry”, covered by Mr. Prasenjit Hansda, Birla Corporation. Mr. Tanmay Maitra, Birla Corporation, offered the audience a general perspective on the new pollution control norms that have been issued by the Indian Ministry of Environment, Forest and Climate Change. The event was completed with the Cement Business & Industry South Asia 2016 Award, a new initiative the organizers put forward for the 2016 edition. The winner was announced by Mr. S. Bharathkumaar, FLSmidth, who awarded Reliance Cement Maihar Plant for their remarkable results obtained with the “Coal grinding system Atox 32.5 with RAKM 35.0 separator”.

importance of India’s Coastal Regions & Maritime Sector, in the global trade scenario. As India is one of the world’s biggest petcoke users, the second day included Mr. Rohit Bhat’s, UltraTech Cement, lecture on the global petcoke industry, followed by the Indian petocke market, its pricing and consumption models, as well as a detailed petcoke price assessment, presented by Mr. Prashant Singh, CW Group.

The organizers committed to a wider set-up for subjects to be included in the 2017 event, such as alternative fuels, government regulations, waste management, carbon footprint reduction, RDF and alternative resources. Cement Business & Industry South Asia 2016 was sponsored by Maize & Blue, FLSmidth, Neptune Industries, Evonik Industries, Calderys India Refractories, CW Group, and was supported by Cement Manufacturers Association (CMA) and CemWeek Magazine.

The environmental and waste management focus, covered topics

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Report

cw research:

International cement trade activity plummets

in 3Q2016

Ex-works pricing show signs of recovery while, generally speaking, pricing remains under pressure, according to CW Research analysts.

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OCTOBER August //September November 2016

FEATURE Report lobal export prices for gray cement have continued to decline into the second half of 2016, falling to well below the USD 60 per ton mark, according to the 3Q2016 update of CW Research’s Global Cement Trade Price Report (GCTPR). While export pricing continued to trend lower, quarter-on-quarter (QoQ) ex-works pricing, however, saw signs of recovery. “Broadly speaking, in the second quarter of the year, we have seen domestic prices recover to some extent in most markets, but in general, pricing still remains under pressure in most markets amid weak demand. Nonetheless, China continues to show strength as ex-works cement prices increased more than 4% QoQ, though they remain well below $40 per ton,” said Stefana Abiculesei, CW Research’s lead analyst for the Global Cement Trade Price Report.

China continues to show strength as ex-works cement prices increased more than 4% QoQ

August / /September OCTOBER November2016 2016

As far as ex-works prices are concerned, CW Research expects pricing contractions in the main markets in Asia-Pacific-Japan, as well as a rather stable pricing environment in the Mediterranean Basin and Eastern Europe. A more positive development will be seen in average sale prices for cement produced in North America given the overall market dynamics.

Average selling prices decline, report coverage expanded Globally, ex-works prices (in dollar terms) declined in the second quarter of 2016 on a year-on-year (YoY) basis across most of the world markets. Even though domestic prices in most of the countries improved on a QoQ basis, prices in markets such as Thailand and Indonesia continued to decrease on a quarterly basis. “In India, higher costs for key inputs in cement production bumped up ex-works prices. Within the AsiaPacific-Japan region, India was one of the leading markets in terms of price increase. Meanwhile, market slowdown and oversupply drove lower price realizations in Saudi Arabia. In the U.S., ex-works rates trended stronger YoY buoyed by consumer spending and growing demand,” said Prashant Singh, Associate Director, CW Research.

Looking ahead, CW Research expects pricing for internationally traded cement to contract further in most regions. Notably, Eastern Europe gray cement FOB prices are projected to fall into the mid-$50 per ton range, on average, by December 2016. Additionally, contractions are expected to be experienced in pricing for Western European exports as 18

well, while pricing in North America and the Caribbean is projected to remain more stable.

The latest update of the report covers principal markets in the world, accounting for 80 percent of global demand. New for the latest update of the Global Cement Trade Price Report is a further expanded coverage of average selling prices for cement in key markets around the world. The GCTPR provides details

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on pricing, competitive information on cement producers’ pricing strategies, review of pricing challenges, as well as indication of price drivers and outlook.

International cement and cementitious products trade prices decline Global trade prices for gray cement fell 6.6 percent YoY in 2Q2016, according to the latest update of the Global Cement Trade Price Report (GCTPR). CW Research’s price indices represent over 70 percent of global trade in the three months to June 2016. For the white cement segment, export prices dropped both QoQ and YoY to an average of $105.3 per ton in the second quarter of the year. On the other hand, volumes trended higher on account of strong volumes shipped from markets in the Mediterranean Basin, as well as North America and Western Europe. During the quarter, global clinker export prices fell 13.5% YoY, Nonetheless, prices recovered to somewhat considering that the global average clinker FOB price rose QoQ for the first time in over a year. For granulated blast furnace slag (GGBFS) exports, CW Research analysts show average prices for the second quarter of 2016 at the highest level seen in more than a year. The increase in price was mainly on account of stronger pricing in AsiaPacific-Japan and strong increase in the Mediterranean Basin. For more information, placing an order, or interview inquiries, please contact Liviu Dinu, Market Services & Marketing Consultant, CW Group, by phone at +40-744-67-4411, or e-mail at ld@cwgrp.com.

In India, higher costs for key inputs in cement production bumped up exworks prices About the Report The Global Cement Trade Price Report (GCTPR) is CW Research’s benchmark price assessment for monthly gray cement, white cement, clinker and granulated blast furnace slag prices and volumes. The 200+ page report, with extensive coverage through tables and charts throughout, published on a quarterly basis, serves as the industry go-to source for monthly price data for about 70 individual markets worldwide, including multiple cornerstone data series: import, export, ex-works and market prices. Additionally, the GCTPR includes extensive discussion of key players’ pricing strategies as well as trading price forecast and select trade volumes for each country. The Global Cement Trade Price Report also provides regional price indices and a review of notable trading dynamics and drivers in different regions. GCTPR is a must-have resource for all industry participants that need to know and track cementitious prices, including cement traders & exporters, accountants & controllers, producers, analysts and shippers. If you need to know pricing, CW Research’s Global Cement Trade Price Report is the go-to resource. More information about the report can be found at http://www.cwgrp.com/research/ research-products/forecasts/product/1global-cement-trade-price-report

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OCTOBER August //September November 2016

FEATURE

Record levels for

coal ash

recycling in the

united sta More than half of the coal ash produced in the United States in 2015 was recycled, for the first time breaking through a 50 percent utilization level that has long been a goal for beneficial use industry leaders.

August / /September OCTOBER November2016 2016

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ates

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OCTOBER August //September November 2016

FEATURE ccording to the “Production and Use Survey” released by the American Coal Ash Association (ACAA), 61.1 million tons of coal combustion products were beneficially used in 2015, out of 117.3 million tons that were produced. “We are pleased to report that 52 percent of coal combustion products were beneficially used in 2015—up from the previous year’s record of 48 percent. For the first time, we are using more of these valuable resources than we are throwing away,” said American Coal Ash Association Executive Director Tom Adams.

The coal ash utilization volume decreased 2 percent overall, in 2015, as usage trends shifted in several key applications. On one hand, the use of coal fly ash in concrete went up 20 percent to 15.7 million tons, increasing from 13.1 million tons ,in 2014. Fly ash improves concrete durability and significantly reduces greenhouse gas emissions associated with concrete production. On the other hand however, the use of fly ash and bottom ash in structural fills declined 54 percent and 19 percent, respectively. The decrease

panel products (i.e. wallboard), which grew to 12.3 million tons, in 2015. Synthetic gypsum is a byproduct of flue gas desulphurization units, also known as “scrubbers,” located at coalfueled power plants. The utilization in agricultural applications – in which the gypsum improves soil conditions and prevents harmful runoff of fertilizers – also rose to 1.6 million tons.

of 1.9 million tons of utilization may be related to regulatory uncertainty over a provision in the U.S. Environmental Protection Agency’s Final Rule for coal ash disposal, that requires evaluation of structural fill projects greater than 12,400 tons in volume. That provision is currently under challenge in litigation.

Furthermore, cenospheres – a very valuable form of ash mainly harvested from wet disposal impoundments – saw utilization drop by 80 percent, as impoundments began to close in response to EPA’s Final Rule for coal ash disposal. “Although 2015’s results are a milestone worth celebrating, it’s important to remember that the United States are still disposing of millions of tons of coal combustion products that could be put to good use,” said ACAA’s Tom Adams. “Additionally, the coal ash beneficial use

Another reason for the lower volumes of coal ash utilization was the decline in the production of boiler slag by 17 percent, to 2.2 million tons, as more power plants that produce The coal ash beneficial use industry is taking this type of material were significant strides in developing strategies and retired. Nearly 84 percent of boiler slag is utilized, technologies for reclaiming coal ash materials mostly as blasting grit or that were previously disposed roofing granules.

August / /September OCTOBER November2016 2016

Percent Used (Right Axis)

Percent Used

Produced

Source: CW Research

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2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

1999

2000

1998

1997

1996

1995

1994

Used

1993

Although the rate of ash utilization increased from 48 percent to 52 percent in 2015, the total volume of material produced and utilized is on a downward trend. Coal ash production volume declined 10 percent from 2014 levels as coal’s share of the electricity generation mix shrank, in response to environmental regulations and competition from other energy sources.

All CCPs Producton and Use with Percent

1992

Volumes decrease, as utilization rates go up

Moreover, the utilization of a “nonash” coal combustion product continued to increase. Such is the case of the use of synthetic gypsum in

1991

Coal is the fuel source for more than onethird of electricity generation in America and produces large volumes of solid coal combustion products — primarily ash and synthetic gypsum from emissions control devices. According to the U.S. Department of Energy, coal and natural gas are currently running neck and neck when it comes to producing a majority of U.S. electricity, which each account for approximately 33% of the country’s total electric generation. Coal ash, also referred to as coal combustion residuals or CCRs, is produced primarily from the burning of coal in coal-fired power plants.

All CCPs (Millions of Short Tons)

“With some help from markets and regulatory certainty, we look forward to continuing to grow these practices that conserve natural resources, make products that are more durable, and dramatically reduce the need for landfills,” he added.

evaluated and approved coal ash for use in cement and wallboard. Products in the EPA’s health analysis included fly ash pulled from the exhaust of coal plants by scrubbers or baghouses, according to the agency. The decision came to disprove Mr. Adams cited a 2015, ACAAthe reputation of coal combustion residcommissioned, study by the American Road uals of being not entirely clean materi& Transportation Builders Association, als. Coal ash contains arsenic, mercury, confirming ample CCP supplies for lead, and over a dozen other heavy metbeneficial use in the future. “Coal will continue to account for a significant However, the recycling was not free of als, many of which can be toxic. But the percentage of U.S. electric generation during concerns, that peaked in 2014, when a EPA said that its evaluation concluded the next two decades. […] Even under spill spewed tons of coal ash into a North that the beneficial use of coal ash in cement and wallboard is safe alternative scenarios of and applicable because accelerated coal-fueled The beneficial use of coal ash in cement and CCRs are similar to virgin electric generating materials and below the unit retirements, CCP wallboard is safe, as the material is below agency’s health and enviproduction is still EPA’s health and environmental benchmarks ronmental benchmarks. expected to exceed overall demand,” study Carolina river. The coal ash poured out of This was great news for companies that authors conclude. a broken pipe into the Dan River, turning use the material. Coal ash recycling EPA: Coal Ash, not a hazardous water into dark muck. Coal ash can have could reduce the number and use of coaldetrimental affects on air and water due ash ponds (and coal-ash spills), as well as waste There are many good reasons to view to its chemical composition, yet experts encourage and promote sustainability by coal combustion products as a resource, have indicated that, not unlike most saving resources, lessening environmental rather than a waste. Recycling them chemicals, any risks can be mitigated by impacts, and reducing costs. conserves natural resources and saves following proper disposal techniques. energy. In many cases, products made During the same year, the US Environ- The EPA decision may have encouraged with CCPs perform better than products mental Protection Agency (EPA) ruled producers to find ways to recycle coal ash, made without it. For instance, coal that they will not regulate coal ash as a leading to the record 52 percent of the fly ash makes concrete stronger and hazardous waste. As a result the agency product being reused in 2015. industry is taking significant strides in developing strategies and technologies for reclaiming coal ash materials that were previously disposed.”

more durable. It also reduces the need to manufacture cement, resulting in significant reductions in greenhouse gas emissions – about 15 million tons in 2015 alone. Major uses of coal combustion products include concrete, gypsum wallboard, blasting grit, roofing granules, and a variety of geotechnical and agricultural applications.

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OCTOBER August //September November 2016

FEATURE

A plant staff is operating via a mobile device.

August / /September OCTOBER November2016 2016

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VAS 5 ®

A NEW GENERATION OF DISPATCH AUTOMATION VAS® 5 – Industry 4.0 Solution The product VAS® is an industry 4.0 solution – proven for many years and made modularly. Adjustments can be made quickly and efficiently. With the new VAS® solution, we have developed a template solution, specially tailored to large corporations.

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OCTOBER August //September November 2016

FEATURE BULK IS OUR JAVA VAS® does now exist since more than 20 years in the market and is used by nearly 200 plants worldwide. With the advent of VAS® the entire software solution has been converted to a web client based approach, what makes it more efficiently. Parallel it provides more flexibility in the choice of operating systems and is compiled in accordance with user requirements. It works independently of any browser and makes it more convenient in the use. Additionally, VAS® uses the highest safety standards provide towards your customers. Regardless if we take into consideration the protection of customer-related data, financials, statutory rules, such as overcharging or the cleaning process.

OUR STRENGTH IS TO PROVIDE SOLUTIONS THAT COVER YOUR REQUIREMENTS COMPLETELY Especially in the cement sector VAS® is internationally well known and recognized. New areas with wide integrated processes occur. It is relentless to name Heidelberg Cement at that point, because they created in cooperation with us at the end of 2015 and beginning of 2016 by the help of VAS®. As a logistical end-to-end process to connect all parties along the supply chain, such as customers, freight forwarders, suppliers and employees. The processes

VAS® Mobile Terminal, installed in a fork lifter

A FRAMEWORK MADE FOR INNOVATION VAS® is designed multilingual for our international customers so that each user can switch into the desired language by clicking. Especially beneficial is this approach for global players.

In recent years, we have successfully positioned ourselves as a market leader in the cement industry. are provided as a web portal which is an integral part of the VAS® dispatch solution from FRITZ & MACZIOL. This trend will intensify – the IAS is the trend with logistic optimizations and its connectivity to industrial components. The challenge for the IAS-Team is now to identify suitable partners to expedite the scaling

August / /September OCTOBER November2016 2016

But not only the surface itself is displayed in several languages, also the needed documents become printed into the desired one. VAS® is also able to handle different writing styles, e.g. Russian letters or Arabic script. Inherent to multilingualism VAS® also works and schedules the entry and exit of

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the plant regarding all in- and outbound processes by the use of LED panels, such as in the parking lot in order to regulate the most effective plant equipment. We support all major database vendors such as Oracle, IBM DB/2 and MS SQL Server. VAS® enables a lossless data exchange between all system components, you need to keep your customers to be able to operate. The VAS® interface “VDX” ensures interference-free communication between VAS® as a whole and your existing ERP, the scales, all silos and all therein mobile equipment such as forklifts and loaders. ERP, works with sales orders the entire value chain on, creates the appropriate documents and delivers the final data back to the ERP. So that no data is missing. All processes are one hundred per cent transparent. VAS® supports the possibility to identify vehicles (trucks and trains) by the use of RFID cards (MIFARE, HITAG), barcode and QR codes.

This kind of technology increases the safety of the plant staff and speeds up the processes entirely.

TRANSPARENCY IN ALL RESPECTS From Experts to Experts The business unit “Industrial Applications and Services” (IAS) employs a wide variety of characters with completely different skills and backgrounds. Therein lies the strength of the team and therefore also in the customer- and process-oriented software solution VAS® – highest expertise in international projects, IT solutions in combination with industrial equipment. Our approach is a four-stage model, which ensures after putting VAS® into your operations that your customers are satisfied customers and we can keep our customers as satisfied partners. In the first stage, we prepare a detailed analysis of all existing requirements and identify any asymmetries, in cooperation with our customer.

VAS® MOBILE TERMINAL Advancement is our Standard Our request is it to you as a VAS® customer to satisfy in all your concerns and to make the processes in the plant and all that come with it to run smoothly and as harmonious as possible. Mobility is ubiquitous because there are no boundaries in our daily life. But mobility and its connectivity to other IT systems is a big issue inside any plant. We equip our customers with mobile devices, which are mounted into a driver´s cabin of any vehicle. • • • • • • •

Ideal for wheel loaders and forklift drivers Mobile adjustment to any driver cabin Available in different sizes Industry proven hardware Operable via touch screen Simple dispatch handling via touch screen Real time information about delivery details, etc. • Amendable settings

The second stage describes the development of the tailored VAS® solution, which is well-matched to our customer´s needs, this is all done by the team of IAS. After the second stage was successfully tested the entire software package goes live in each plant – and the third phase of the project is completed. The IAS offers a 24/7 support for all our customers worldwide, what describes stage four. These four stages and a close relationship with our partners are the key factors for our success. www.VAS-IT-for-Logistics.com

ABOUT THE COMPANY: FRITZ & MACZIOL, member of the Axians ICT network The FRITZ & MACZIOL GmbH (F&M) with its headquarters in Ulm, Germany is an independent IT systems house which offers a complete portfolio of consultancy, services, software and hardware. Top-partners of the company are Cisco, EMC, HPE, IBM, Microsoft, SAP as well as further industry leading manufacturers. Besides the traditional

IT business also further strategic IT fields like cloud, mobility, business analytics and Industry 4.0 belong to the core competences of the company. Following an integrative method our F&M-specialists support the customer in order to use technologies and applications as needed, to optimize their processes and to execute their digital strategies successfully. In an IDG survey for customer satisfaction, F&M has ranked second in the category of large IT system houses in Germany. Since October 2014 F&M belongs to the French Construction and Industry conglomerate of Vinci. Under the umbrella of the brand Axians, Vinci Energies connects all ICT (Information & Communication Technology) activities worldwide. www.fum-vas.de

About Axians Axians supports its customers – enterprise, public sector, carriers and service providers — from IT & Infrastructure services to digital transformation. Axians provides a comprehensive portfolio of solutions: software solutions, cloud-based and managed IT services, data systems and data centres, enterprise networks and collaborative solutions, telecommunications infrastructures. Axians is a brand of Vinci Energies. www.axians.com2015: €1.7 billion revenue // 8,000 employees // 200 business units // 15 countries

About Vinci Energies In a world undergoing constant change, Vinci Energies focuses on connections, performance, energy efficiency and data to fast-track the rollout of new technologies and support two major changes: the digital transformation and the energy transition. With their strong regional roots and agile organisational structure, Vinci Energies’ business units boost the reliability, safety and efficiency of energy, transport and communication infrastructure, factories and buildings. 2015: €10 billion revenue | 65,400 employees | 1,600 business units | 51 countries www.vinci-energies.com Article by Oliver Kurtnacker

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OCTOBER August //September November 2016

FEATURE

Lime cw research:

LIME CONSUMPTION GOING STRONG

Lime demand will maintain an ascending trend in developing markets, in the next five years. CW Research analysts forecast single digit increases in all regions.

August / /September OCTOBER November2016 2016

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OCTOBER August //September November 2016

FEATURE ime is one of the oldest and most vital materials used at a global scale, with numerous applications in a wide range of industries. The breadth of its usage spans from heavy industry applications, to environmental

percent decrease, when compared to the year-ago volumes. In terms of production, by type of lime, most of the lime manufactured is sold as quicklime (historically around threequarters of the total production). Many

Regional lime consumption CAGR (%) 10-'15

Asia Pacific

Europe and CIS

Steel, the most important end-user industry

16-'21

Americas

Middle East

Africa

Source: CW Research

and agricultural purposes, from building materials manufacturing, to road infrastructure, chemical industry and many others. According to CW Research analysts, all of the lime’s end-user segments, such as steel, civil construction, aluminum, FGD, agriculture, road construction, paper and pulp, sugar cane, metallurgy and ore, and oil, will see an increase in Compound Annual Growth Rate (CAGR). “For instance, Asia ex-China will see a growth in steel, aluminum, construction, and paper and pulp sectors. In the case of developing regions, the manufacturing sectors will see healthy growth, while in Africa, in particular, agriculture will continue the expansion that started years ago. All of these growth rates influence add in lime consumption forecast,” said Raluca Cercel, consulting analyst with CW Group. In 2016, global lime consumption amounted to a volume of about 350 million tons, approximately a two 30

August / /September OCTOBER November2016 2016

three different types of lime to remain largely unchanged, with the notable exception of quicklime, which could increase its share even further, helped by the recovery of the steel manufacturing sector. “We forecast global lime demand to reach 370 million tons, by 2021,” said Raluca Cercel.

quicklime buyers slake the commodity individually for construction purposes, particularity mostly found in developing countries. Nevertheless, hydrating the lime is a more complicated process than slaking, hence manufacturers produce hydrating lime in-house and then sell it to various end user segments. Analysts expect the segmentation between the

China is both the largest lime manufacturer and consumer, with a 60 percent share of the global demand. The shares of the Americas and Europe, for instance, that follow the Asia-Pacific region (including China) in terms of global consumption, only range between 10 and 12 percent. CW Research analysts forecast demand to grow at a slower rate in the Asia-Pacific region, in the next five years, while Europe, the Americas, the Middle East and Africa will see a more accelerated growth pattern. According to Raluca Cercel, “developing markets will see the fastest lime consumption growth in the next five years, with increases surpassing two percent on a CAGR basis.” In terms of end-user industries, steel remains the most important lime consumer in 2016. Globally, the sector consumes more than 40 percent of the total demand. At the global level,

End-user consumption segmentation global ex-China 2021 (%) Sugar Paper and cane pulp

Metallurgy and ore

Road Construction Others Civil construction Oil

Steel

Agriculture Alumina

Source: CW Research

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FGD

excluding China, steel is followed by FGD applications, with a share of close to 20 percent, an almost three percent increase, when compared to figures from 2010. However, in China’s case, steel is followed by civil construction applications. In the next five years, CW Research analysts expect steel and civil construction applications to be the largest lime consumers, worldwide. “In 2021, steel will maintain its over 40 percent share of global lime consumption, while the demand in civil constructions is expected to contract due to the use of lime substitutes,” according to Raluca Cercel, Consulting Analyst, CW Research.

Global market to reach USD 22 billion, by 2021 Ex-works quicklime prices show important fluctuations between regions, being dependent on kiln technology, fuel adaptability, fuel cost and fuel options, level of plant operations automation, raw material availability and quality, regulatory framework (particularly environmental related

End-user consumption segmentation China 2021 (%) Road Construction Agriculture Others FGD Alumina Steel Civil construction

Source: CW Research

ones), stability of electricity supply, among other factors. South Africa leads in terms of pricing, averaging USD120 per ton, in 2016. When looking at the future size of the market at the global level, CW Research analysts believe the market will reach close to USD 22 billion in our base case scenario. China, representing half the global market, will experience lower growth.

Global lime market size 2016E to 2021 F (bn USD) YoY % change

Global market size

2016E

2017F

2018F

Paper and pulp

2019F

2020F

2021F

Source: CW Research

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.

About the report The comprehensive market research report provides in-depth assessment and outlook for world market for quicklime, slaked lime and hydraulic lime through 2021. The report provides detailed market sizing in a highly quantitative and data-rich format to provide reliable and accurate decision support. Key areas such as demand by industry end-user segments, product price dynamics and competitive landscape for major lime markets and worldwide industry are extensively covered. The report is divided into regional demand (USD and in tons) as well as product segments, providing a strategic perspective on the evolution and outlook for the industry, including steel, construction, paper & pulp, mining & minerals, agriculture, petrochemical applications, precipitated carbonate and others. More information about the report can be found at http://www.cwgrp. com/research/research-products/ product/111-global-quicklime,-slakedlime-and-hydraulic-lime-market-reportforecast-to-2021

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OCTOBER August //September November 2016

CEMENT MARKETS

CW Research

CEMENT VOLUMES In Saudi Arabia, cement demand fell 22.2 percent YoY in September 2016 to 3.3 million tons, while cement production saw an 18.1 percent decline to 3.5 million tons. Growth in the market has been long subdued on account of lower governmental spending for infrastructure development due to weaker oil gains. Furthermore, rising inventories have affected earnings for Saudi cement producers.

In Argentina, cement demand fell 11.3 percent YoY in September 2016 to just below one million tons, while production posted a similar result and amounted to just above the one-million-ton mark.

As previously anticipated, the Brazilian cement market continued to be under pressure from weak economic growth driving down construction activity. Cement demand continues to post double-digit YoY and YTD falls. In September, demand for cement stood at 4.8 million tons in Brazil, down 13.1 percent YoY. In Argentina, cement demand fell 11.3 percent YoY in September 2016 to just below one million tons, while production posted a similar result and amounted to just above the onemillion-ton mark. Demand has returned to a downward trend after having posted a year-onyear increase in August. The previous month also brought about a steep MoM increase. Though Colombia has also seen a similar decline rate in cement consumption numbers,

the year-to-date results show a 4.1 percent drop compared to 12.6 percent in Argentina. The Colombian cement market has fared better the challenging economic conditions. Cement production fell only 3.2 percent yearto-date in Colombia. Cement demand in Spain remains under pressure after some signs of recovery early this year. During the first nine months of 2016, consumption rose marginally, September seeing a 0.9 percent decline in consumption numbers to just below one million tons. On the other hand, Thai cement consumption fell for the fourth consecutive month in September 2016, the YoY decline rate reaching 3.1 percent and bringing consumption numbers to 2.7 million tons. To date, demand for cement in the domestic market was 1.1 percent lower than in the same period last year. On the plus side, demand for cement in Pakistan has continued to increase in September, albeit at a smaller pace than in previous months. In the ninth month of the year, domestic demand rose 2.1 percent YoY, while YTD consumption was 15.1 percent higher than in JanuarySeptember 2015. Cement production September 2016â&#x20AC;&#x201C; YoY change (%)

Cement demand September 2016 â&#x20AC;&#x201C; YoY change (%)

60%

40% 30% 20%

20%

10%

Source: CW Research

To learn more, please contact the CW Research team at sales@cwgrp.com or +1-702-866-9474 32

August / /September OCTOBER November2016 2016

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Cyprus

India

Vietnam

Ukraine

China

Belarus

Japan

Peru

Thailand

Colombia

Russia

Argentina

-60%

Italy

Cyprus

Pakistan

Spain

Indonesia

Japan

Thailand

Peru

Colombia

Brazil

Argentina

Morocco

-30%

Saudi Arabia

-20%

Saudi Arabia

-20%

-10%

CW Research

CEMENT PRODUCTION (million tons) Country

MoM (%)

CEMENT CONSUMPTION (million tons) YoY (%)

YTD

YTD (%)

MoM (%)

YoY (%)

TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION.

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CEMENT PRODUCTION MOM (%)

TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION.

WWW.CEMWEEK.COM/SUBSCRIBE

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

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.

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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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OCTOBER August //September November 2016

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.

CEMENT ENERGY MARKETS

CW Research

Energy Prices Update COAL: The average coal price for September 2016 closed at $62.15 per ton, increasing 9.6 percent YoY, as

compared to September 2015’s price of $56.71 per ton. It increased by 5.1 percent when compared to August 2016’s price of $59.11 per ton.

Steam Coal FOB Average Prices (us$/ton) US exported

Colombia exported

Australia Newcastle

Indonesian HBA

South Africa Richards Bay

110 100 90 80 70

US petcoke exports increased by 18.7 percent to 3.53 million tons in September 2016, when compared to the previous month, and down by 28.2 percent as compared to September 2015.

60 50 40

Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Jul ’12 ’12 ’13 ’13 ’13 ’13 ’13 ’13 ’14 ’14 ’14 ’14 ’14 ’14 ’15 ’15 ’15 ’15 ’15 ’15 ’16 ’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 78.18 million tons in September 2016, declining by 11.1 percent in comparison with the 87.82 million tons recorded in August 2016. An increase in coal trading volumes occurred in Australia and South Africa, while Indonesia, Russia, United States and Colombia all showed volume decreases in the month of September.

PETCOKE: US petcoke exports increased by 18.7 percent to 3.53 million tons in September 2016, when compared to the previous month, and down by 28.2 percent as compared to September 2015. The US export price for petcoke for September 2016 closed at $52.78 per ton increasing by 22.4 percent as compared to August’s price of $40.55 per ton and down 15.4 percent when compared to September 2015’s price of $63.36 per ton.

US Petcoke Export Price (us$/ton) 80 70 60

Rolling 12-month average

50 40 30 20

S ‘16

A ‘16

J ‘16

M ‘16

A ‘16

M ‘16

J ‘16

F ‘16

D ‘15

O ‘15

N ‘15

S ‘15

A ‘15

J ‘15

M ‘15

A ‘15

M ‘15

F ‘15

J ‘15

D ‘14

N ‘14

S ‘14

O ‘14

Source: customs data

NATURAL GAS: The US Henry Hub spot price traded at $2.99 per MMBTU in September 2016, up 6.0 percent as compared to August 2016 and up 12.4 percent as

compared to September 2015’s price of $2.66 per MMBTU. Prices in Europe decreased 4.5 percent MoM, reaching $4.27per MMBTU in September 2016.

To learn more, please contact the CW Research team at sales@cwgrp.com or +1-702-866-9474 34

August / /September OCTOBER November2016 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.

COAL - EXPORTS (million tons) - Apr 2016 Country

MoM (%)

PETCOKE - EXPORTS (million tons) - Apr 2016 YoY (%)

YTD

YTD %

Country

MoM (%)

YoY (%)

YTD

TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION.

WWW.CEMWEEK.COM/SUBSCRIBE

YTD %

COAL EXPORTS MoM (%) US PETCOKE EXPORTS PRICES MoM (%)

TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION.

WWW.CEMWEEK.COM/SUBSCRIBE

COAL - IMPORTS (million tons) - Apr 2016 Country

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

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.

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OCTOBER August //September November 2016

CEMENT ENERGY MARKETS

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DEPARTMENTS

PEOPLE Lafarge Africa appoints new CFO Lafarge Africa has appointed Bruno Bayet as new chief financial officer after the resignation of Anders Kristiansson at board of directors at September 20, 2016. The appointment of Bruno Bayet as the CFO was effective from October 1, 2016. Bruno Bayet is a Belgian who holds a Business Engineer degree from Universite Catholique de Louvain-la-Neuve in Belgium. Mr. Bayet has over 16 years of experience in Materials and Construction Industry. He was a manager in corporate finance with PricewaterhouseCooper from 1998 to 2005, after which he joined Groupe Bruxelles Lambert, a 12bnE Belgian Holding Company from 2005 to 2011 in the investments team as senior analyst.

Bruno Bayet

August / /September OCTOBER November2016 2016

India Cements appoints S. Sridharan as company secretary India Cements has informed that consequent to the retirement of Mr. G. Balakrishnan as Senior President and Company Secretary of the company. Mr. S. Sridharan has assumed the office of the Company Secretary. The appointment will become effective on April 01, 2016. S. Sridharan will also act as Compliance Officer with immediate

Colombia: Cemex appoints new management Cemex appointed a new senior level management team at CLH and Cemex Columbia. The company seeks to enhance the level of leadership, administration, and corporate governance practices. The board of directors appointed Juan Pablo San Augustin as Chairman f Board of Directors of CLH, Jaime Muguiro Domínguez has been confirmed as Chief Executive Officer of CLH. In addition, Juan Pablo San Augustin will also remain as Executive Vice President of Strategic planning and New Business Development of Cemex. Jamie Mugurio will also remain as President of CEMEX South, Central America and the Caribbean and is also a member of CEMEX’s Executive Committee. “I have the highest confidence in our new senior management members of CLH, Ricardo Naya and Francisco

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S. Sridharan

effect. Previously, S. Sridharan was company secretary with Trinetra Cement. Aguilera. Both of them have the proven experience, talent and dedication to perform their respective roles. Ricardo is the right person to lead our operations in Colombia,” said Jaime Muguiro, CEO of CLH. He added, “I am very optimistic about the outlook for our business.” In addition, Ricardo Naya Barba has been appointed Director of CEMEX Colombia. Whereas, Francisco Aguilera Mendoza has been appointed Director of Planning of CLH, and will be appointed Director of Planning of CEMEX Colombia in the upcoming days.

PEOPLE Sichuan Shuangma Cement announces changes in executive team China’s Sichuan Shuangma Cement announced the regination of several board members, including Zhou Fengqi, Hu Meimei, Qi Xiaomei, Jorge Baigorri Lopez. The company announced that Mr. Fengqui has resigned from the company due to personal reasons. Meanwhile, Hu Meimei, Qi Xiaomei, Jorge Baigorri Lopez resigned from the Board of Directors and no longer hold any stakes in the company. Sichuan Shuangma cement manufactures and markets cement and cement products. Through its subsidiaries, the company also generates electric power and trades construction materials.

UltraTech announces resignation of directors UltraTech Cement announced the resignation of two board members, R.C. Bhargavaa and Rajiv Dube. The two directors stepped down due to personal reasons and other commitments. R.C.Bhargave was an independent director and Rajive Dube served as Non-Executive Director on the company’s board of directors. The company accepted the resignations.

JSW Cement appoints new managing director JSW Cement has appointed Parth Jindal has been appointed as Managing Director of JSW Cement. Mr. Parth Jindal will be assisted by Anil Kumar Pillai as CEO. Mr. Parth has

Lafarge Zambia has a new CEO and managing director Vincent Bouckaert is the new chief executive officer (CEO) and managing director of Lafarge Zambia. The board of directors of Lafarge Zambia announced that Emmanuel Rigaux, the former CEO and managing director of the company resigned last August 24 to take place as the new head of the west Africa cluster for LafargeHolcim, managing operations in several countries like Cameroon, Guinea, Côte d’Ivoire, and Benin. Bouckaert was the former CEO of Lafarge’s Indian Ocean cluster, compromising Reunion, Mauritius,

Madagascar, Mayotte, Comoro Islands, Seychelles, and Maldives. He entered Holcim France in 1997 as assistant to CFO, and in 1998 became CFO of Holcim Madagascar. He was also CFO and CEO of Holcim Lebanon. He graduated in French territory from the Engineering and Economics at Centrale Lille.

Zuari Cement gets new MD as part of Italcementi acquisition Jamshed Naval Cooper, formerly CEO and managing director of HeidelbergCement India Ltd (HCIL), is to become managing director of Zuari Cement and managing director of HCIL. Mr Cooper, who previously worked for ACC before joining HCIL in 2006, will now be responsible for managing the affairs of both companies. Zuari Cement is an Italcementi subsidiary and the appointment of an HCIL executive as shown a keen interest in growing the cement business and was instrumental in convincing the group to invest INR 800 crore in the grinding unit at the site where the work on a 10-million tons integrated steel plant with an investment of INR 35,000 crore was stopped due to a delay in allocation of raw material linkages.

managing director reflects the changes brought about by HeidelbergCement’s acquisition of its parent. Zuari Cement is one of the leading cement producers in South India. A fully owned subsidiary of the Italcementi Group, the company has grown from a 0.5 million ton capacity in 1995 to above 6MnT in 2013. Zuari entered the Cement business to operate the Texmaco Cement Plant in 1994. The company became a 100% subsidiary of Italcementi Group in 2006.

Vice Chairman of Jaiprakash Associates resigns India-based Jaiprakash Associates’s Vice Chairman, Sarat Jain has resigned, with an immediate effect. "He is presently 78 years old and is not keeping in good health. As such he has expressed his inability to continue as Vice Chairman/Director of Jaipraksh Associates," said an official from the company. Meanwhile, Jaiprakash Associates has sold its cement business for around INR 15,900 crore to UltraTech Cement in March 2016.

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OCTOBER August //September November 2016

regional report

EUROPE, MIDDLE EAST AND AFRICA Romania: LafargeHolcim posts lower sales in January-September LafargeHolcim Romania posted a decrease in cement sales of 4.7 percent during the first nine months of 2016. On those same months, the average market prices in dollars increased by 1.4 percent year-on-year At the end of the first six months of the year, LafargeHolcim Romania forecasted an increase in sales of 0-2 percent for the full-year 2016. Now, the company now predicts a drop in sales of 1-3 percent. Sales were affected by lower demand in Romania and Poland, coupled with infrastructure construction delays. In July-September quarter, LafargeHolcim reported a total net profit of CHF 740 million and total net sales of CHF 7.04 billion for its overall international operation; compared to CHF 366 million and CHF 7.82 billion in the same period of 2015 respectively.

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New cement production line in Calabar, Nigeria LafargeHolcim will begin production at its new cement plant at Calabar, Nigeria during the month of October. The production line II at the Mfamosing cement plant will be started in October and will produce 6,250

GCC opens new cement plant in Poti, Georgia A new cement factory was opened in the Georgian city of Poti. The new cement plant by Georgian Cement Company (GCC) will produce 250,000 tons per annum. Construction began in 2014, after GCC stroke a partnership with LafargeHolcim. The French-Swiss group supplied GCC with the latest technology, including the standards

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tons per day or 2.5 million tons per annum. The new cement plant will employ 1,024 workers, including 485 Nigerians and 539 foreigners. According to the plantâ&#x20AC;&#x2122;s manager, Thierry Terriere, the new unit is equipped with the most advanced technology and is ready to begin working. and equipments for a laboratory that will test cement quality in-loco. Poti lies in western Georgia, where much of the cement demand is met by Turkish imports. Large infrastructural projects, like highways, ports, and hydroelectric stations, will be constructed in the region, and GCC wants to seize the opportunity. The company actually made an exhaustive market research before beginning the project, taking into consideration all the facts above.

regional report New cement production line in Calabar, Nigeria LafargeHolcim will begin production at its new cement plant at Calabar, Nigeria during the month of October. The production line II at the Mfamosing cement plant will be started in October and will produce 6,250 tons per day

or 2.5 million tons per annum. The new cement plant will employ 1,024 workers, including 485 Nigerians and 539 foreigners. According to the plant’s manager, Thierry Terriere, the new unit is equipped with the most advanced technology and is ready to begin working.

LafargeHolcim announces more divestments LafargeHolcim is considering divesting assets from several countries. The Chairman of LafargeHolcim, Beat Hess, confirmed that the group is committed to exit some markets. The group currently generates 80 percent of its operational earnings before taxes in only 25 of the 65 countries where it is present and wants to concentrate its effort on further developing those markets. Since the beginning of the year, LafargeHolcim has already achieved its target of divestments, the equivalent to CHF 3.5 billion. The target was expanded to reach CHF 5 billion by the end of 2017.

LafargeHolcim Maroc Afrique continues expansion LafargeHolcim Maroc Afrique is likely to acquire two new firms in sub-Saharan Africa. A joint venture between Société nationale d’investissement (SNI) and LafargeHolcim, has acquired a 50 percent stake in SCB Lafarge Benin and 54.7 percent in Cimencam in Cameroon.

capacity of 1.7 million tons per year. The joint venture plans to enter into other regions of Africa which have growth potential, including Burkina Faso, Gabon, Mali, Mauritania, Congo, Democratic Republic of Congo and Senegal.

The company has not disclosed the terms of the deal. SCB Lafarge in Benin has a production capacity of 600,000 tons per year and Cimencam has a production

LafargeHolcim to divest assets in Polpaico, Chile LafargeHolcim plans to divest its assets in Polpacio, Chile, reports t13. The company is in midst of selling investments in several companies. The company plans to withdraw from several markets and focus on a few markets, in a bid to improve profit

According to Hess, more structural adjustments should be expected in the markets where Lafarge and Holcim were both present before their fusion.

France: Ecocem to invest in a greenfield cement plant earnings. The company may have presence in fewer countries by the end of 2017. The company generates 80 percent of its operating profit before tax, depreciation and amortization in 25 countries. The remaining funds will be invested in strengthening its operations and improve operational results.

Ecocem will invest around EUR 47 million to setup a greenfield cement plant in Dunkirk, France. The cement plant is expected to have a production capacity of 750,000 tons in the phase 1 of the cement plant. The cement plant will use steel slag, a byproduct of pig iron, to produce cement. The cement unit is expected to be operational in three years. The construction of the cement plant is expected to complete in 15 months.

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OCTOBER August //September November 2016

regional report

SOUTH EAST ASIA Kashmir cement market records decline in activities Kashmir cement market has recorded a significant decline in activities, recording a loss of INR 200 crore. The cement plants were deserted due to ongoing unrest, which affected the activities at the cement plants. “We were doing well. Our production and demand increased a lot and we were making good profit. But the unrest is hitting us badly. We have suffered a loss of nearly INR 20 crore as the factory is shut for the last three months,” said Atul Sharma, Managing Director of JK Cement. The lockdown in the region have affected the cement prices, which have skyrocketed due to shortage of production of cement. “There are two main reasons behind this: first is the increase in the ferrying charges and the second being the ongoing unrest itself. Normally one truckload of cement would cost nearly INR 6070,000 but the unrest has escalated it to one lakh rupees,” said Ghulam Hassan, Accounts Officer, Saifco. The ongoing unrest has also affected the number of workforce at the cement plants and higher transportation of cement from cement plants to the dealers.

August / /September OCTOBER November2016 2016

Ambuja Cement to acquire stake in Holcim

and subsidiary) with a view to harvest significant synergies from India operations.

The Indian Cabinet has approved the proposal of Ambuja Cement to acquire 24 percent stake in Holcim India. The transaction is valued at around INR 3,500 crores. Additionally, these transactions would enable Lafarge Holcim group to create a linear corporate structure (with Ambuja and ACC becoming parent

The move is also expected to help the company to increase its market share in the country. In addition, it will help in debt free balance sheet and cash flow generation, bringing in huge prospects for further expansion and creation of employment opportunities.

Birla acquisition of Reliance cement assets to be completed The Indian company Birla Corp is closing in to completing the acquisition of the entire cement business of Reliance Infrastructure. The regulatory clearances are expected to be completed by the second of FY2016. “It is under implementation. Some (regulatory) compliance has to be done. We are in the process of addressing these. And once this compliance issues are resolved, then the closing can happen like any other deal,” said Harsh V. Lodha, Chairman of Birla Corp.

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The acquisition is expected to provide the company ownership of modern plants while also increasing its total cement production capacity from 10 million tons per annum to a volume of 15.5 million tons per annum, strengthening its presence in the high growth Central region of India.

regional report Semen Indonesia posts increase in cement exports Semen Indonesia recorded a 187 percent increase in cement exports to 86.8 million tons in August, 2016, as compared to the same period last year. The cement exports rose by 4.1 percent to 360.4 million in August, 2016, as compared to the same period last year. The cement exports increase amidst oversupply of cement in the domestic market. "The August contract has been no new countries, but rising demand from Bangladesh, the Philippines, Timor Leste, and Brunei Darussalam," said an official from the company. Semen Indonesia expects the cement demand to increase in the next few months and increase the scope of export markets. The company plans to increase cement exports to Taiwan.

Indonesia faces cement oversupply

Pakistan: Prices of cement to increase in the next months Pakistani cement producers will increase the cost of a 50-kilogram bag by PKR 36 per unit. The increase will be gradual, and it will begin by a PKR 15 per bag raise during the month of November. Manufacturers justify this decision pointing to higher coal prices in the international market.

The All-Pakistan Cement Manufacturers Association is protesting the fact that coal is one of the few fuel sources that is subject to an import duty. The cement industry consumes around 95 percent of the 4.5 million tons of coal imported each year by Pakistan.

Pakistani producers use coal as their main fuel for cement kilns. Thermal coal was negotiating at USD 90.95 last Monday, October 17. Pakistan’s government recently decided to rise the duty on imported coal from five to eleven percent, further increasing fuel costs.

Nepal: Bhairahawa’s expansion rests on new power lines

The Indonesian cement market is struggling to absorb the additional installed capacity. The Indonesia Cement Association says that cement capacity production will reach 90 million tons, 11 million tons more than in 2015. During the last year, four new cement plants entered operation in the country. The association is advising the Ministry of Industry against permiting the construction of new cement plants. At the same time, demand showed a sluggish increase of 3 million ton. Due to overcapacity, stockpiles are increasing. Even in this scenario, capacity is expected to continue increasing and reach 100 million tons in 2017.

Nepal’s Bhairahawa cement hub’s expansion plans are dependent on the installation of new power lines. Several cement plants in the region have halted production due to a crippling power crisis in the country as the plants are unable to utilize their installed capacity. As Bhairahawa lies near the ancient site of Lumbini, government policy bans the operation of factories

within a 15 km radius of the holy site. Meanwhile, the several cement companies have stalled their expansion plans as the environmental rules do not permit the expansion. However, the region is expected to get a power transmission line of 132 KVA and an additional 200 MW will be transmitted to the Lumbini Industrial Corridor in the near future. The new power lines are expected to minimize the power issues in the region.

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OCTOBER August //September November 2016

regional report

ASIA PACIFIC Indonesia to export more cement in 2016 Indonesian cement exports are expected to reach two million tons during 2016. According to the chairman of the Indonesian Cement Association Widodo Santoso, cement exports have been following a trend of sharp growth this year. He forecast that cement and clinker sales to foreign clients will reach two million tons, almost double the amount from 2015. Last year, exports soared by 280 percent, going from 270,000 to one million tons. During January-October, Semen Indonesia exported 483,700 tons of cement, compared to 419,700 tons in 2015, a year-on-year increase of 15.2 percent. Semen Padang exported 373,800 tons, while Semen Tonasa sold 109,900 tons overseas. Indonesian export main recipients are Australia, Bangladesh, the Philippines, Sri Lanka, Timor-Leste, Maldives, and some countries across Africa. An increase in exports will help Indonesian cement manufacturers to better accommodate the impact of oversupply within the domestic market.

August / /September OCTOBER November2016 2016

Australia halts investigation on imported quicklime The Australian Anti-Dumping Commission (ADC) recommended terminating an investigation into dumping of quicklime from Vietnam, Malaysia and Thailand during October. Earlier this year, the ADC started an investigation in quicklime products imported from Vietnam after claims from Australian Cockburn Cement that the domestic industry was being harmed by the imports. The ADC found that certain exports of quicklime from Malaysia, Thailand and Vietnam were being dumped, but there was no evidence of injury on the Australian industry. The average selling prices of the imported quicklime from Thailand and Vietnam were above the unsuppressed selling price proposed by Cockburn Cement, considering factors like reduction of market share, profits

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and profitability, employment, capacity utilization and actual price suppression. The quicklime imported from Malaysia, Thailand and Vietnam represented less than 5 percent of the Australian market, the investigation discovered. Cockburn Cement recorded a 28 percent increase in sales volume from 2014 to 2015, with another rise expected in the first two quarters of 2016. It is the only quicklime manufacturer in the Western Australian market. In the investigation, the ADC considered the differences in chemical quality of quicklime and the competitive nature of the market as possible causes of injury to Australian manufacturers. During the inquiry period from January 1st, 2015, to December 31st 2015, quicklime products were imported duty-free into the Australian market. The final recommendation will be issued no later than November 24, 2016, while the parliamentary secretaryâ&#x20AC;&#x2122;s decision is expected within 30 days of receiving the recommendation.

regional report

New cement unit proposed for Hòa Bìhn, Vietnam The Vietnamese Ministry of Construction has received a project for a new cement unit in the Hòa Bìhn province. The project was elaborated by the Hòa Bìhn Provincial People’s Committee. The project includes a cement plant by Xuan Thien, part of the private conglomerate

ThaiGroup, with a total production capacity of 6.75 million tons per annum. Recently, the Deputy Prime Minister of Vietnam Trịnh Đình Dũng delegated to the Ministry of Construction the task of coordinating the Cabinet towards composing a long-term strategy for the cement sector in the country and making plans for development until 2030.

Stable outlook for Vietnamese cement market The Vietnamese cement market is expected to see a stable cement output at around 5.6 million tons in November 2016 as compared to the same period last year. The cement consumption is expected to be around 5.5 million tons in November 2016, as compared to 3 million tons in January 2016. The cement prices have remained relatively unchanged at VND 1,250 per ton to VND 1170 per ton in the first few months of the year. The cement prices are expected to remain stable in November as well.

Wagners forms joint venture with JSW Cement

Japan: Cement demand remains sluggish

India’s JSW Cement has formed a joint venture with Australian company, Wagners. The companies will produce geopolymer cement together. Wagners will have a 75 percent stake in the joint venture agreement. “About 95 percent of raw materials used for the product is either slag, which comes out of the steel making process or fly ash that comes out of power making process,” said Parth Jindal, MD of JSW Cement. The move is expected to have a positive impact on the operations and market share of the company.

New cement unit planned in NghÊAn, Vietnam Vietnam will have a new cement unit, to be built until 2020. Hoàng Mai Cement continues to hold plans for a new unit on the Hoàng Mai plant, in the province of Nghệ An. The plant is part of a development strategy document elaborated by the

The Japanese Ministry of Economy expects demand for cement to pick up as 2020, the year when Tokyo will host the Olympic Games, comes closer. For now, demand remains sluggish, after 14 consecutive months of decrease leading to last August. Cement consumption will likely be lower in the fiscal year of 2016 than in the last year. According to the Japan Cement

Association, domestic production and a small number of imports will easily meet an internal demand for 43 million tons. Cement production and consumption peaked in the late 1990s, when they reached above 80 million tons and little short of 100 million tons, respectively. They then bottomed after the 2008 global crisis and remained slack since then.

Vietnam National Cement Association for the year of 2016-2020. With an estimated capacity to produce 4.5 million tons of cement per annum, the factory is expected to cost VND 79.4 billion. When finish, it will create 550 jobs in the surrounding communities. The plant is designed to produce cement for both domestic consumption and exportation. www.cemweek.com

OCTOBER August //September November 2016

regional report Argentina: G&L International invests in a cement packaging unit

AMERICAS Canadian researchers design environmentally friendly cement Canadaâ&#x20AC;&#x2122;s Concordia University researchers have designed burnfree cement, which has almost zero emission and requires no energy. Dr. Mahsa Madani Hosseini researched silica rich plants during her PhD in Environmental Engineering at Montreal's unitiversity. The researcher and her team have created a blend of bio-silica, after combustion of organic residues, with Portland cement. "The biosilica could come from agricultural wastes such as

Cemex to sell assets to Eagle Materials Cemex has signed an agreement to sell certain assets to Eagle Materials. The assets in the contract include, cement plant in Fairborn, Ohio and cement plant and cement terminal in Columbus. The planned transction is 44

August / /September OCTOBER November2016 2016

corn cob, wheat straw, rice husk or industrial wastes such as saw dust, wood chips, and sewage sludge,â&#x20AC;? explained the researcher. The new material bio silica has shown a blend of biosilica with Portland cement increases the compressive strength of concrete and also increases resistance to acid attack. However, producing the cement at commercial scale may be challenging as the raw materials are not easily available.Hence, the researchers have refined and continually optimized to increase performance and reduce production costs.

expected to generate proceeds of around USD 33 million. The proceeds from the transaction are expected to help in debt reduction of Cemex and also minimize general corporate expenses. The sale is expected to be finalized during the fourth quarter of 2016, as the company await clearance from regulatory authorities.

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Argentina-based G&L International inaugurated its cement packaging plant this week. The plant has a production capacity of 7,000 containers per hour and it is expected to improve productivity of the company. The packaging plant will engage in packaging of several construction materials including cement, lime, and pre mix. The packaging plant uses latest technology to package several construction materials.

Cemex installs water recycling equipment at its Balcones quarry Cemex installed a new water recycling system on its Balcones quarry, in the state of Texas. With this new system, Cemex will cut by around 90 percent its water intake, reducing its dependence on local water bodies. Annually, it will save the equivalent to 2,000 Olympicsized pools. The machine, which uses and recycles 12,000 gallons of water per minute, is part of the new wash plant at the site. On this occasion, the president of Cemex USA Ignacio Madridejos reaffirmed his companyâ&#x20AC;&#x2122;s compromise on reducing its environmental impact and improving its sustainability. The Balcones quarry, one of the largest in North America, produces around 10-12 million tons of limestone materials per annum.

regional report

Colombia: Cement companies to invest in plant renovations Around four Colombian cement companies, Cemex, Cementos San Marcos, Cemargos, Molins and Organization GJY, have invested around USD 4 billion in plant renovations. The companies intend to improve the market share in the country. "The main investment we have in Colombia is our plant in Maceo, Antioquia, which will be ready later this year and will be finalizing this

investment in the first half of 2017. This plant will have a production capacity of around one million tons, with an investment of approximately COP 1 billion, " said Carlos Jacks, president of Cemex Colombia. He added "in the first six months of this year our sales in Colombia increased 11 percent in pesos compared to the same period in 2015." Meanwhile, Cementos San Marcos plans to increase production capacity from 257,000 tons per year to 550,000 tons per year.

Mexico: Yucatan researchers create lime-based cement Yucatan researchers have developed a new variant of cement using lime, which is eco friendly and flexible. The researchers at Anahuac Mayab University have designed cement composed of hydrated and pozzolan lime to produce a cement higher strength and sustainability. The scientists measured the mechanical properties compared with existing ones; during impairment testing, the materials

Argos Cement will operate new Honduras plant Colombian cement-maker Argos is operating a new cement plant in San Lozenzo, southern Honduras, after investing USD 25 million dollars in it. The company acquired the plant from French Lafarge in 2013, for over USD 300 million. The plant, previously known as Estacion de Molienda CeSur, has a 300,000 tons capacity per year, and mostly produces grey cement. The company is interested in the Honduran market, which had an 8 percent growth in 2015 after decreasing 3 percent in 2013, and an additional

were exposed to old techniques in chamber of salt corrosion and studied with a spectrophotometer color loss of material. The researchers have begun with the second level of the research to test the effect of prototype of the a plant. “In this new stage the development of a pilot plant feeders, where they could generate different formulations cementitious raised in a controlled manner, " said Dominguez. 13 percent in 2014. Presently, the market is reaching 2011 levels, but the company is also looking to expand its reach in Central America, particularly Mexico, and to consolidate its presence in the United States market. Overall, the company has an installed capacity of 1.3 million tons in Honduras, and is currently producing over 900,000 tons.

Brazil: InterCement, Embrapa to explore biomass in cement sector InterCement has signed a partnership with Empresa Brasileira de Pesquisa Agropecuária, or Embrapa, to produce energy for cement production from biomass. InterCement and Embrapa want to use fodder plants, including three types of grass-plot, to power cement kilns. The use of biomass has a large potential on reducing carbon dioxide emissions. Grass-plot from the tropical regions are especially useful for power generation. They create large quantities of biomass while demanding low quantities of water and adapting easily to different types of soil and clime. The project will make use of Embrapa’s experimental area in Planaltina, in the Federal District, and in the cement plant of InterCement, in Cezarina, on the state of Goiás. One-hundred and five tons of biomass were already collected to be used during the trials.

Cemex to sell cement plant in Fairborn, Ohio, USA Cemex will sell its cement plant in Fairborn, Ohio to Eagles. The deal is valued at around USD 400 million. The sales deal is expected to help Cemex to repay debts and general expenses. The move is expected to be completed by the fourth quarter of 2016.

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OCTOBER August //September November 2016

BMWEEK.COM

CONSTRUCTION & BUILDING MATERIALS BY BMWEEK.COM IRISH CONSTRUCTION INDUSTRY AT SEVEN-MONTH HIGH Activity, new orders and employment all increased at faster rates in October, thrusting the Irish construction industry to a seven-month high. The Ulster Bank Construction Purchasing Managersâ&#x20AC;&#x2122; Index (PMI) also displays a rise in companies purchasing activity, along with confidence for future output. The PMI is a seasonally-adjusted snapshot designed to track changes, and found that the commercial construction category was the best performer for the sixth successive month. Activity on housing projects also rose at a sharp and accelerated pace during October, while the rate of new order growth quickened for the fifth consecutive month, to be the strongest since February. This led construction firms to increase their staffing levels.

A rise in new business in October was also a key factor behind the construction firms purchasing activity expansion, one of the sharpest since the survey began in mid-2000. Higher demand for inputs led supplies to increase their charges, resulting in delivery delays. The rise in input costs faced by construction firms during October was sharp and the fastest since August 2015. Suppliersâ&#x20AC;&#x2122; delivery times lengthened at a quicker pace than that recorded in September. Business sentiment also ticked in October and remained strongly positive, with around two-thirds of respondents predicting an increase in activity over the next 12 months. Among the reasons for this optimism were the prediction of the improving market conditions and a good pipeline of work, according to a survey.

BUILDING MATERIALS PRICE AT SIX YEAR RECORD IN NAMIBIA Building materials prices in Namibia have increased 32 percent since 2010. A remarkable case is super bricks, the price of which surged by 48.7 percent during this time. Despite this, the price of cement declined substantially during 2011 and 2012, while overall cement prices increased by 25.6 percent during this period. All things accounted for, this means that the average annual inflation is 5.4 percent in the building materials sector. Land prices have also surged 27 percent in the past 6 years, while the market price for houses rose 97.7 percent, 3 times more than the hike in both materials and land costs. Annually, the market selling prices of houses increased 16.3 percent. Cement and bricks amount to 31 percent of the total cost of building materials of a standard three bedroom house. Serviced land is cheaper in Keetmanshoop, while the same area of serviced land is seven times higher in Windhoek. A standard three bedroom house requires nearly 15,000 bricks and 264 bags of cement (50 kg), among other materials. To build a house of 76 square meters house, total costs should reach NAD 228,481.

August / /September OCTOBER November2016 2016

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RISING CONSTRUCTION MATERIALS COSTS AFFECT INFRASTRUCTURE COMPLETION PROJECTS IN EGYPT The Egyptian Federation for Construction and Building Contractors will implement new decisions and steps after the floatation of the pound and the increase in fuel prices, which led to a rise in building materials costs. Over 150 contractors announced that they can no longer continue their work due to the heavy losses. The contractors reported filing a complaint twice with Housing Minister Mostafa Madbouly, but he had not taken any action still.

CEMEX UK INCREASES SHIPMENTS BY RAIL Cemex reached 2 million tons of materials transported by rail in the United Kingdom, earlier in the year than ever before. According to the company, 2016 is on course to be the best year for material movement through this mode of transportation. This is also the fourth consecutive year in which transportation of materials has increased, primarily from the quarries and other company operations. Cemex is working in partnership with DB Cargo UK, and has run approximately 40 train loads a week, mostly out of Dove Holes, in the High Peak district of Derbyshire, to 11 locations throughout

The federation called for fair compensation for the losses they suffered as a result, and a 6-month extension on the deadlines of national projects they are currently undertaking. Virtually all the materials used in the construction industry in Egypt saw a large spike in price. These materials are necessary to complete national infrastructure project on which contractors are working on. The contractors demand the government to compensate them financially so that they can continue their work on the national infrastructure projects.

the country. Cemex operates four rail dispatch points â&#x20AC;&#x201C; Dove Holes Quarry (Derbyshire), Shap Quarry (Cumbria), and Neath and Cardiff, both in South Wales. It transports a range of different aggregate products to a total of 14 receiving depots serving key areas of the United Kingdom. For example, high-PSV Cumbrian hard stone goes to Washwood Heath, near Birmingham, for use in asphalt. Limestone is transported to Birmingham for PFI work and to London for major construction projects such as Crossrail. Large lumps of limestone go to East Anglia for burning in kilns to produce lime that is used to purify the juice from sugar beet in sugar production.

US: NONRESIDENTIAL CONSTRUCTION PROJECTS ADVANCE IN OCTOBER

The Architecture Billings Index (ABI), a forward-looking indicator for nonresidential construction projects, moved up to 50.8 points. Despite this, the index remained below the break-even threshold for the three-month moving average for the second consecutive month. Design contracts dipped 2.7 points, to 48.7 during October, but the three-month moving mark remained above 50. Activity seems to have peaked in mid-2016, and has been decelerating since then, suggesting a slowdown. A reading above the 50 mark means an increase in billings, while everything under it intimates a contraction in activity. By region, the South saw its billings increase further, with the last 4 years posting readings above the 50 points mark. Construction billing activity in the Midwest, North and West registered declining scores during the month, with the Midwest falling 3.3 points to 46.8, the lowest score in 10 months. By sector, residential multifamily saw the greatest improvement during the month, while commercial/industrial, institutional and mixed billings were weak. This trend suggests some slowdown in construction activity in 2017, although the American Institute of Architects noted the recent slate of lackluster scores is likely due to uncertainty around the presidential election. Commercial construction outlays continue to lead the way, but the pace of institutional building is moderating. Institutional rose 1.9 percent on a year during October, while healthcare outlays declined for the fourth straight month, with weakness in the sector concentrated in medical building construction spending. However, hospital construction spending improvement could stall given any pullback in the Affordable Care Act. Manufacturing outlays fell almost 7 percent when compared to the previous year, with continued weakness in chemical and transportation equipment outlays, which comprise the largest components in the sector.

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OCTOBER August //September November 2016

PETCOKEWEEK.COM

PETCOKE PRODUCTION, SHIPPING AND PRICING BY PETCOKEWEEK.COM INDIA: PETCOKE SALES RISE IN OCTOBER Overall fuel consumption or sales in India increased 6.8 percent in October 2016 when compared to the same month in 2015. Total sales volume was 16.49 million tons. Petcoke consumption rose 20.7 percent to 1.84 million tons in October 2016 as compared to the same period of the previous year. During the same time, diesel sales rose 5.1 percent (6.67 million tons), petrol hiked 13.8 percent (2.11 million tons), while LPG increased 10.2 percent (1.86 million tons). Fuel oil consumption also rose 12.0 percent, to 0.59 million tons, lubes and greases surged 23.1 percent to 0.29 million tons, aviation turbine fuel (ATF) improved 9.9 percent to 0.59 million tons, while naphtha increased 1.7 percent to 1.11 million tons, and light diesel oil expanded 18.6 percent to 0.04 million tons. Other fuels also saw their consumption increase by 7.0 percent

to 0.04 million tons. During this time, however, bitumen consumption declined 12.3 percent to 0.44 million tons, and kerosene slipped 34.0 percent to 0.38 million tons. From April to October 2016, overall fuel consumption lifted 9.2 percent, to 113.19 million tons as compared to April-October 2015. Petcoke sales expanded by 43.8 percent during that same period, while petrol consumption improved 11.3 percent, while diesel hiked 3.2 percent, and LPG surged by 11.0 percent. Consumption of oil fuel also rose 15.5 percent, while ATF surged 11.9 percent, and lubes and greases increased 13.4 percent. Over this period, Bitumen also moved up 6.4 percent, while naphtha expanded 1.3 percent, LDO improved 14.4 percent, and others inched up 3.3 percent. Kerosene sales declined 13.5 percent from April to October 2016 compared to the same period in the previous year.

OMAN OIL AND KUWAIT PETROLEUM SIGN MOU REGARDING PETCOKE REFINERY Issam Al Zadjali, chief executive of Oman Oil, announced that they are signing a Memorandum of Understanding (MoU) with Kuwait Petroleum for a partnership in Duqm refinery, in Oman. The unit is part of a large industrial zone that is the biggest single economic project of the Gulf Arab Sultanate’s, which is trying to diversify its economy away from oil. According to Zadjali, the agreement should be signed by today, November 8, after Oman failed to reach an agreement with Abu Dhabi’s stateowned International Petroleum. "For the time being, our partners from Kuwait will replace the partner from the United Arab Emirates,", said Zadjali. Kuwait Petroleum’s CEO Nizar al-Adsani said that the memorandum of understanding would equally combine crude from the two energy-rich Gulf Arab states. "It's 230,000 bpd. It's mixed crude (from) Oman and Kuwait, fifty-fifty," claimed Adsani. The new plant will focus on fuel production, among them uncalcined petcoke.

August / /September OCTOBER November2016 2016

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PETCOKEWEEK.COM YPF PERFORMS NEGATIVELY IN 3Q2016 Argentinian oil company YPF has recorded a negative operating profit growth of ARS 34.6 million during the third quarter of 2016. According to the company, this was due to a price drop of the oil commercialized in the domestic market. However, compared to July-September of the past year, hydrocarbon production grew 1.3 percent in the homologous period of 2016. During the mentioned quarter, the company started operating its petcoke plant at the La Plata Industrial Complex, which led to a 6.3 percent growth in sales of petrochemical products. Grade III diesel sales also improved 2.9 percent. A new plant will also be commissioned by the second quarter of 2017, in Mendoza, if early estimates are correct. YPF’s operative profit in the third quarter of 2015 was ARS 5.6 million, while the same quarter of 2016 showed results of negative ARS 34.5 million, a 714 percent drop. EBIDTA results display a surge of 9.3 percent for the third quarter, reaching ARS 14.6 million. Company revenues totaled ARS 55.8 million, a 39.4 percent increase from the same quarter in 2015. However, measured in USD, the prices of the main products that the company markets showed negative results, as oil prices fell by 12.9 percent, the price of gasoline dropped 15.7 percent, and diesel declined 18.7 percent compared to the same period of 2015. Costs also increased by 61.2 percent compared to the third quarter of 2015, but YPF managed to keep inflation below extraction costs, meaning a USD decrease of 20 percent. In the third quarter, oil production reached an average of 247,100 barrels per day, while gas output sat at 44.9 million cubic meters per day. Throughout 2017, UPF started production in 133 new wells, made an investment of ARS 11.7 million, 69 percent of which was destined to sustain production in profitable areas. Unconventional resources totaled 58,200 barrels of oil equivalent per day, with a total of 522 wells in production, a total of 11 active teams by the end of the third quarter of 2016.

PEMEX TO INSTALL COKING EQUIPMENT Mexican refiner Pemex is applying a tolling scheme to the coking installation in its Tula refinery. The equipment’s contract was awarded to ICA Fluor in 2014, and is valued at USD 95 million, with a refining capacity of up to 86,000 barrels per day. Pemex has not elaborated on its tolling system for the unit, but that is inserted on the company’s new plan for refineries that aims to revamp Mexico’s refining business from the largest crisis it’s gone through since 1990. The plan will be carried into 2025. Between 2010 and 2015, Pemex refining business recorded losses around MXN 666 million. Up until September 2016, crude oil refining reached 766,308 barrels per day, the lowest since 1990. This corresponds to roughly 47 percent of the company’s total capacity, which can reach 1.64 million barrels per day.

Due to these production cuts, initiated at the start of 2016, Mexico’s fuel imports, especially gasoline and diesel, have surged. In the third quarter report of 2016, Pemex reported a negative income of MXN 88 million. Estimates are for that number to ascend up to negative MXN 96 million at the end of the year. In order to revert the situation, Pemex is forming a series of contracts and partnerships, contract services, and a tolling scheme around several of its units, among them the coker. Through this, the company aims to generate up to MXN 41 million per year. Among the new projects, such as private partnerships in order to improve synergies, the company is also installing new energy cogeneration plants at its refineries to cut energy costs, revamping its refineries at Tula, Salamanca and Salina Cruz, while also making plans for a new refinery. Most of these projects don’t have a start or end date at the time.

VENEZUELA: PETROLEUM COKE EXPORTS HALTED

Venezuelan petcoke exports coming from state-owned Petro San Felix terminal were halted because of burning cargo spotted on a bulk carrier. The burning fuel was detected aboard the vessel Top Trader while it was loading at the terminal, located in Ciudad Guyana, on the Orinoco River. The load came from Venezuela’s state oil firm PDVSA for charterer

Koch Industries of the US. Petro San Felix is an integrated project involving extraction and upgrading of heavy oil into other substances. Venezuela is a leading exporter of petcoke, which derives from the country’s heavy oil and which is usually transported to the terminal at a high temperature.

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OCTOBER August //September November 2016

EQUIPMENT

EQUIPMENT Cemex installs water recycling equipment at its Balcones quarry

Mordovcement successfully refurbishes vertical mill

Cemex installed a new water recycling system on its Balcones quarry, in the state of Texas. With this new system, Cemex will cut by around 90 percent its water intake, reducing its dependence on local water bodies. Annually, it will save the equivalent to 2,000 Olympicsized pools.

Mordovcement, part of the Eurocement Group, concluded modernization works at its vertical cement mill. The mill has been successfully updated, and is no equipped, among other features, with a better cooling system. According to the Deputy General Director of the company, Gennady Kulikov, the new feature will reduce

overheating of oil in the main gearbox. Other fixes include the restoration of the grinding table through special welding techniques. The reconstruction was closely monitored by specialists from the firm Gebr. Pfeiffer. Thanks to the improvements made, productivity is expected to increase from 320 to 405 tons per hour.

The machine, which uses and recycles 12,000 gallons of water per minute, is part of the new wash plant at the site. On this occasion, the president of Cemex USA Ignacio Madridejos reaffirmed his companyâ&#x20AC;&#x2122;s compromise on reducing its environmental impact and improving its sustainability. The Balcones quarry, one of the largest in North America, produces around 10-12 million tons of limestone materials per annum.

China: Hongshi Cement to complete kiln project China-based Hongshi Cement will complete its kiln preheater project later in October, 2016. The company has invested around CNY 700 million to setup a 150-meter-high pre heater kiln. The construction of cement kiln is almost 70 percent complete. The kiln is expected to begin operation by in March, and the cement plant will be operational in May. The cement company will have a production capacity of two

August / /September OCTOBER November2016 2016

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billion tons. The cement plant will follow all the environmental norms. The new unit will help to boost cement sales income to CNY 680 million and help to record revenue of CNY 120 million.

EQUIPMENT

Lafarge Jordan to build captive solar power plant Lafarge Jordan will have its own solar power plant, with operation set to begin during the third quarter of 2017. A solar power plant will be installed by Adenium Energy Capital on the Rashadiya cement plant. It will have the capacity to produce 15 megawatt of electricity. According to Wassef Sawaf, CEO of Adenium, this is the first project of this kind in the region. The project fits in Lafarge Jordan's plans to reduce carbon emissions and with the national Jordanian strategy for

renewable energy recently launched by the Ministry of Energy and Mineral Resources. For the CEO of Lafarge in the country, Amr Reda, the new power plant will have a positive impact on the national economy on a macroeconomic level.

Turkey: Bursa Cimento continues automation Turkey-based Bursa Cimento continues to invest in automation of production process, in a bid to improve operational efficiency. Over the last few years, the company has increased production capacity to 1.4 million tons of clinker. In the last year, the company produces around 425,000 tons of cement, and

Ecocem France orders new mill Ecocem France placed an order for a Loesche mill type LM 46.2+2 CS for the new Dunkerque cement plant. Ecocem also operates a Loesche mill LM 46.2+2 CS for dry-grinding of ground granulated blast furnace slag at their production plant in "Fos-sur-Mer", Southern France. Ecocem France is the first independent producer of ground granulated blast-furnace slag (GGBS) in Europe. Ecocem France recycles the secondary material, granulated slag, from the production of cast iron by the iron and steel industry. Ecocem GGBS has the ability to significantly reduce the carbon footprint of concrete, the material most widely used for building and public works. According to Ecocem, 1 ton of ground slag valued in the

exported around 425,000 tons of cement in foreign markets. The automation process in expected to increase homogenization of laboratory and semi-products produced at the mill. The move is also expected to improve operational efficiency, product quality and improve operational capacity of the mill. concrete industry avoids the emission of 900 kg of CO2 and extraction of 1.6 tons of clay and limestone. The LM 46.2+2 CS for the cement plant in Dunkerque is designed for the grinding of cement clinker and granulated blast furnace slag at a capacity of 105 t/h GGBFS. The gearbox will have a capacity of 3.150 kW. The Loma heater type LF 28-L will be a full-inlined type designed to burn natural gas as well as blast furnace gas. The burner supplied by Loesche will be MSBZ type, complete with fitting rack and local switch cabinet. The lead time for the main components of the mill and for the additional units included in the scope of supply is 6 to 13 months in sequence to installation schedule. The commissioning of the vertical roller mill is planned for the mid of 2017.

FLSmidth develops alternative fuel solutions in China FLSmidth, together with Sino Environment Engineering Development (SEED), is developing solutions for alternative fuel use by Chinese cement makers. FLSMidth is developing a custom solution for the Hongshuihe cement plant, located in Binyang, in the province of Guangxi. The plant wants to use house waste, with a high moisture content and a low burn value, as an alternative fuel. With that in mind, the Danish equipment maker installed a HOTDISCÂŽ pyro co-processing system that will burn around 300 tons of waste per day. The plant, owned by China Resources Cement (CRC), produced around 3,200 tons of cement per day. With this new solution, the plant hopes to contribute to a solution to Chinaâ&#x20AC;&#x2122;s growing waste problem. Around a third of all Chinese cities have noticed groundwater pollution from waste disposal, and landfills across the nation are growing at an annual rate of eight percent. According to the FLSmidth manager for the Chinese market, Cyril Leung, the government is pressuring cement companies to reduce their energy intake and to curb carbon dioxide emissions. CRC has several similar plans and will likely engage in other collaborations with FLSmidth and SEED.

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OCTOBER August //September November 2016

analyst recommendations JK Cement, Shree Cement Ashwani Gujral of ashwanigujral.com advises on cement companies. "Cement is probably started a multi-year bull market this March and a lot of stocks have come out of large bases. So, in the midcap, Dalmia Bharat , JK Cement, even Prism Cement will get to levels which we can’t think of today, so it is

entirely a sector move. So everything that has cement attached to it is likely to do very well. Shree Cements probably will get to Rs 20,000. So, all kind of cement stocks are going to have fairly serious bull market from here," said the analyst according to moneycontrol.

Heidelberg Cement S2analytics.com’s Sudarshan Sukhani recommends buying Heidelberg Cement stock. "India Cements has already seen a very handsome rally including the one yesterday. It is possible to buy HeidelbergCement India and hold it. UltraTech Cement which is not in the smaller ones, but there also a long trade is possible."

ACC Limited Ambuja Cements Ashwani Gujral of ashwanigujral.com recommends buying Ambuja Cements stocks. "Ambuja Cements is a buy with a stop loss of Rs 194, target of Rs 210 and

UltraTech Cement Rajat Bose of rajatbose.com advises on selling UltraTech Cement. "I have two sell calls, one is Arvind November Futures. I would put a stop loss above Rs 346.25 and target is Rs 334-337," said the

August / /September OCTOBER November2016 2016

Jubilant Life Sciences with a stop loss of Rs 618, target of Rs 640. Apollo Tyres is a buy with a stop loss of Rs 184, target of Rs 198," said the analyst.

analyst, according to moneycontrol. "Cement stocks are doing pretty badly and expected to do even worse. So, in UltraTech Cement November futures, I would put a stop loss above Rs 3,320 and target would be Rs 3,270 and Rs 3,244," he added.

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Prabhudas Lilladher has recommended accumulate rating on ACC with a target price of Rs 1550 in its research report, according to moneycontrol. “ACC reported a disappointing set of numbers for Q3CY16. Higher than expected increase in costs played the spoilsport despite highest ever usage of cheaper petcoke (up 440bps YoY with share at 63%), higher availability of captive limestone and lower crude derivative prices. Contrary to our expectations, company failed to deliver on majority of key business aspects like adding limestone reserves, protecting market share, cost efficiency and timely capacity expansion. We have cut our earnings estimates by 8%/18% for CY16/ CY17 to factor in lower realizations and muted volume outlook.

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GLOBAL CEMENT VOLUME FORECAST REPORT The Global Cement Volume Forecast Report (GCVFR) is a twice-yearly, data-oriented forecast report, providing extensive details on the global outlook as well as key cement markets worldwide. The benchmark report provides a five-year outlook on cement consumption, production, net-trade, cement production capacity and other key cement metrics that decision makers cannot live without. The GCVFR is built with investment-grade analytical rigor, informing industry professionals about what is expected around the corner for world cement markets. visit: http://goo.gl/eib8fE

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Flashback NEWS FLOW IN CEMWEEK.COM LAST TWO MONTHS (darker blue shows higher news volume)

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12 articles

USA

China

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Iran

Egypt

51 articles

23 articles

46 articles

India

Mexico

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Saudi Arabia 30 articles

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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: december 01, 2016

World and India Petcoke Price Marker –

december 06, 2016

AshTrade Asia

december 15, 2016

Global Cement Ex-Works and Trade Prices –

January 26-27, 2017

December update

Cw research newest report:

Webinars

Conference

4Q2016 in review

Webinars

CW Group’s Cement Finance, Strategy & Trade Summit Americas 2017 Miami, USA

August / /September OCTOBER November2016 2016

Conference

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Global Cement Volume Forecast Report (GCVFR) 2016 Update

Global Cement Cement and clinker Trade Price Report Price Assessment: Mediterranean 3Q 2016 Basin

October 2016

November 2016

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TOP BMWEEK STORIES activity 1. Kaolin to expand capacity IRAN 2. Australia halts investigation on imported quicklime Lafarge Canada commits to reducing emissions 4. Brundage-Bone Concrete Pumping acquired new businesses in the UK 5. Nepal to certify new cement brands 6. India: Odisha state asked to meet rural road target 7. US: New plant to develop building materials from fly ash 8. CRH US sales decrease during the second quarter 9. Wika Beton hopes to grow further in 2017 10. Egypt: Rising construction materials costs affect infrastructure completion projects 11. Pakistan: Construction sector is thriving 3.

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