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GRINDPLUGwww.plugandgrind.com
www.cemengal.com
The Plug&Grind® has arrived
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May 2013
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CONTENTS
Palladian Publications Ltd15 South Street, Farnham, Surrey, GU9 7QU, ENGLAND
Tel +44 (0)1252 718999 Fax +44 (0)1252 718992 Email: [email protected] Website: www.worldcement.com
This month’s front cover
www.worldcement.comYears of InnovationÇimsa, Turkey, reviews the company’s milestones and priorities on the occasion of its 40th anniversary.
IntroductionÇimsa, the leading cement company in Turkey, has recently celebrated its 40th year in the business and today the company is able to provide customers with a range of products, including calcium alimunate cement, grey cement, white cement and ready-mixed concrete.
“Forty is an age in which you feel younger and stronger, but also have the experience of years. Çimsa feels the same,”
during an event to celebrate the anniversary.He continued: “Many public opinion surveys are
conducted every year. According to these surveys, Sabanci group is always the most trusted company and Çimsa is among the creators and inheritors of this trust. The nature of our existence is to give customers the highest quality service possible. We try to reinvigorate the economy by producing the best quality cement and providing employment, all the time being conscious of our environmental and social responsibility.”
40 years of achievementsIn its 40-year history, the company has celebrated a number of achievements, including the following:
The Mersin plant is the largest white cement plant in the world, at 1 million t capacity under one roof.
Çimsa is the world’s third biggest white cement producer.
Turkey’s biggest global player in cement since 1990, today Çimsa exports to more than 50 countries.
The company has the biggest ready-mixed cement production network in Turkey.
For many years, Çimsa has been among Turkey’s top 100 companies in the corporate tax list.
Innovation has been the basis for Çimsa’s success. It won ISIDAÇ 40’s Golden Plumb award and the Europe Green Certificate with its CEM IV product.
| 2726 |
26FEATURED ARTICLES
IntroductionHow can one take care of a business second by second whilst travelling around the world? In the 21st century doing so has become a fairly simple reality; smart phones, laptops, etc., can be used to stay on top of sales activities, stock controls and buying services, for example, but this tends to be linked to activities on the commercial side
of business. Would it be possible to manage other activities remotely, such as a cement storage plant? For Euromecc, the answer was ‘yes’. The company studied how to provide a full turnkey solution that would allow customers to always be tuned with their storage system, in order to manage loading, unloading and all such processes related to the various cement delivery phases.
Eng. Daniele Sciuto, Euromecc S.r.l., Italy, discusses the installation of a cement
storage plant with minimal operator and driver involvement.
| 77
77
GRINDPLUGwww.plugandgrind.com
www.cemengal.com
The Plug&Grind® has arrived
May 2013
Volume 44: Number 5May 2013 ISSN 0263 6050
May 2013
WORLD CEMENT REGULARS[07] Comment
[09] News
[17] Keynote: Global Trading PatternsImran Akram, IA Cement Ltd, UK, examines developments in international cement trade.
[99] Product News
[104] 15 Facts...
REGIONAL REPORT: TURKEY & MENA[26] 40 Years of InnovationÇimsa, Turkey, reviews the company’s milestones and priorities on the occasion of its 40th anniversary.
[31] Turkey’s Growing MarketBulent Kolanci, ABB in Turkey, examines Turkey’s cement sector and discusses a supply contract for the largest greenfield cement project in the country.
[37] Bulk Materials Handling Across the MENA RegionPietro de Michieli, Bedeschi SpA, Italy, details several projects from across the Middle East and North Africa.
COVER STORY[40] A New Market SolutionAngel Martin and Moises Nuñez, Cemengal, Spain, present the Plug&Grind®, an alternative solution for cement grinding and packing, with an introduction from Dario Del Frate, General Manager of Cemengal.
A complete cement grinding and packing station, assembled exclusively with European components, shrunk to fit eight 40 ft. containers and able to produce up to 100 000 tpa of standard OPC or 60 000 tpa of slag. It is delivered FOB seven months after purchase and it can be moved.
World Cement[May 13] | 3
95
81
[Turn to page 55] At present, the German cement industry obtains more than 60% of its need for thermal energy from waste and waste-derived fuels...
CONTACTS
Managing Editor James [email protected]
Editor Katherine [email protected]
Editorial Assistant Louise [email protected]
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Advertisement Executive Paul [email protected]
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Reprint/Marketing Assistant Catherine Gower [email protected]
Publisher Nigel Hardy
SUBSCRIPTION RATES
Annual subscription (published monthly): £160 UK including postage/£175 (E260) overseas (postage airmail)/US$260 USA/Canada (postage airmail).Two year subscription (published monthly): £256 UK including postage/£280 (E416) overseas (postage airmail)/US$416 USA/Canada (postage airmail).Claims for non receipt of issues must be made within 4 months of publication of the issue or they will not be honoured without charge.Applicable only to USA and CanadaWORLD CEMENT (ISSN No: 0263-6050, USPS No: 020-996) is published monthly by Palladian Publications and distributed in the USA by SPP, 17B S Middlesex Ave, Monroe NJ 08831.Periodicals postage paid at New Brunswick, NJ. POSTMASTER: send address changes to WORLD CEMENT, 17B S Middlesex Ave, Monroe NJ 08831.Copyright© Palladian Publications Ltd 2013. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the copyright owner. All views expressed in this journal are those of the respective contributors and are not necessarily the opinions of the publisher, neither do the publishers endorse any of the claims made in the articles or the advertisements.Uncaptioned Images courtesy of www.bigstockphoto.comPrinted in the UK.
CONTENTS
31
May 2013
LIME[51] The Lime IndustryWorld Cement explores developments in the international lime industry.
ALTERNATIVE FUELS[55] Seeking PermissionDirk Lechtenberg, MVW Lechtenberg & Partner, Germany, provides further information about environmental regulations and emission limits in this excerpt from the Alternative Fuels and Raw Materials Handbook for the Cement & Lime Industry, updated according to the latest developments in this area.
SOFTWARE[65] Picking Up the PaceOlaf Streit, Aucotec AG, Germany, outlines a new solution that simplifies the tendering process in plant construction.
MATERIALS HANDLING & STORAGE[71] Heart of SteelMarco Taddio, SIG SpA, Italy, considers the advantages provided by rubber conveyor belts with a fabric-like steel core.
[77] Intelligent Cement StorageEng. Daniele Sciuto, Euromecc S.r.l., Italy, discusses the installation of a cement storage plant with minimal operator and driver involvement.
[81] Stacking and StockpilingCarl Donnelly, Telestack, UK, outlines three case studies from around the world.
[85] From Design to ExecutionMartin Wuerth, Wuerth Consulting Engineers, Switzerland, presents a case study on a multi-compartment silo project at Jura Cement in Switzerland.
[88] Bagging & Packing Round-UpProduct and project news for bagging and packing technology in the cement industry.
World Cement[May 13] | 5
Now it’s time for our grinding technology. For further information please call +49 211 53 53 0 or visit www.loesche.com
ACCORDING TO OUR RESEARCH, THIS WONDERFUL INDUSTRIAL PLANT SHOULD BE CALLED A BEETLE
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World Cement[May 13] | 7
May 2013
EDITOR’S COMMENT
The explosion at a fertiliser plant in West, Texas last month was a stark reminder of the dangers industrial workers
face – and contain – every day. Details of the cause of the explosion in Texas were not available at the time of writing; such an investigation will take weeks – possibly months – as firefighters comb the wreckage for clues. One report, however, has speculated that a failed pressure release valve might be at the root of the problem. Pressure in the ammonia tank, heated by the fire, should never have been allowed to build as it did, ultimately causing the enormous explosion that left 14 people dead and at least 200 injured. Whatever the cause, questions will be asked – just as they would be at a cement plant. Why did the valve fail? Why did no one notice it was failing? What could have been done to prevent the fire, the explosion, the fatalities?
At the recent IEEE-IAS/PCA Conference in Orlando, Florida, a comment was made to the effect that some US cement producers have been neglecting maintenance work because of the current environmental and economic conditions. Given the dangerous nature of the cement production process, a failure to address maintenance concerns is a failure to address safety.
Katherine Guenioui, [email protected]
[17] Imran Akram gives an overview of Global Trading Patterns in this month’s Keynote. [55] Dirk Lechtenberg examines the intricacies of Seeking
Permission to burn alternative fuels.
[31] An overview of Turkey’s Growing Market from Bulent Kolanci, ABB. [88] Project and product news in this Bagging & Packing
Round-Up.
Another topic high on the conference agenda was training. Skills shortages are a massive problem in the US – and worldwide (see the Editor’s Comment, March 2013). It’s a combination of an ageing workforce, the difficult economic environment – which has resulted in a massive loss of talent through ‘restructuring’ programmes – and a lack of newcomers to the industry. If plants are operating with under-skilled or insufficient staff, performance will obviously suffer. So will safety.
In an industry this size, already facing a less than positive public profile, safety failures cannot simply be absorbed into the ether of ‘these things happen’. From both a personal and business perspective, a safety breach is unacceptable. Zero harm is the only goal. Of course, this isn’t news, but when you have been working the same job for a while it is easy to let complacency take hold and safety can slip from consciousness. Safety posters fade into the background, safety talks blur into meaninglessness, and horror stories become just that: stories. How can we make sure that this doesn’t happen? I would love for you to share your ideas, your philosophies and whatever is working for you on our Linked In page. Find it through our website at www.worldcement.com. The cement industry has long been a leader in innovation; let’s make it a safety leader, too.
FibreShield® and Tea-Kraft® multiwall paper is so strong you can use fewer plies and reduce basis weight without losing strength – saving you money. Add fast, clean filling, and low breakage rates, and you have the perfect solution for the construction, food, and chemical industries.
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World Cement[May 13] | 9
May 2013
WORLD NEWS
Fives FCB finalises license agreement with FCT ACTech
Loesche wins VRM contract from Holcim Ecuador
Pakistan sees 22.79% increase in exports
To read more about these
articles go to:
Scan for the WORLD CEMENT iPhone/iPad App
Get the free mobile app athttp:/ /gettag.mobi
Stanam Industries, which designs and manufactures
conveying and cleaning of powdery and bulk products, has established a new site in the US. The inauguration of the site took place on 6 February 2013 in Tampa, Florida.
Close to a motorway junction, the site is well connected and can supply its customers in a very short time: indeed, a storage space is dedicated to minimise lead times.
the proximity with the warehouse, as well as improved storage capacity and the number of parts available.
For industries in various sectors such as mining or quarrying, cement or incineration plants, it is essential that sites are safe for all employees. At the same time, environmental regulations regarding dust emissions are becoming stricter. Stanam Industries provides equipment to ensure plants can comply with these regulations.
In the US, Cemex required products from Stanam Industries to solve dust problems at its site. The cement company was facing spillages at transfer points on conveyor belts and considerable loss of product. After extensive technical studies, the customer was convinced of
® is a patented system that optimises the sealing property of any conveyor belts. It is standard and easy to install on new or existing conveyors: a removable
dust emissions. This product is also available in different versions, such as high temperature or large width, so it
providing positive results. The conveyors (underground and external) are totally secured and loss of product has
ThyssenKrupp’s two engineering subsidiaries ThyssenKrupp Polysius and ThyssenKrupp Fördertechnik have merged as part of the group’s strategic development programme. Combined, they will now be known as ThyssenKrupp Resource Technologies. The new company will supply the cement, mining, bulk materials handling and mineral processing industries, providing single-source expertise on areas such as design and consulting,
[USA] A new site for Stanam Industries
[Germany] ThyssenKrupp Polysius merges with ThyssenKrupp Fördertechnik
engineering and project management, construction, installation, as well as after-sales service, R&D and plant
ThyssenKrupp Resource Technologies has approximately 5500 employees and annual sales of around e2 billion. The management board comprises
and Lothar Jungemann (cement business).
28 July – 2 August 201311th International Conference on Mercury as a Global Pollutant
Edinburgh, Scotlandwww.mercury2013.com
10 – 13 September 2013UNITECR 2013
Victoria, BC Canadawww.unitecr2013.org
25 – 27 September 20137th International VDZ Congress
Düsseldorf, Germanywww.vdz-congress.org
8 – 10 October 201312th TÇMB International Technical
Seminar and ExhibitionAntalya, Turkey
www.tcma.org.tr/Technical_Seminar
11 – 13 November 201318th Arab International Cement
Conference and ExhibitionJordan
www.aucbm.org
19 – 22 November 201313th NCB International Seminar on
Cement and Building MaterialNew Delhi, India
www.ncbindia.com
World Cement[May 13]10 |
May 2013
WORLD NEWS
In a consortium with KHD, Loesche has won an order for two vertical roller mills for ACC/Holcim. The VRMs are to be installed at the Jamul plant in India where some clinker will be ground in the cement plant and some will be processed in grinding terminals. An LM 56.3+3 with a capacity of 195 tph will be used
a 5600 kW motor. The mill will also be able to grind slag. The second VRM is an LM 43.4 D, which has a capacity of 90 tph and a 1300 kW gearbox.
Loesche will also provide additional equipment, which will be delivered as part of a joint venture between Loesche GmbH, Düsseldorf, and Loesche India Pvt. Ltd.
PT Holcim Indonesia Tbk. has awarded ThyssenKrupp Resource
Technologies the contract to build a second cement plant near Tuban, Java. The plant is due to commence production in 2015. The contract, which is worth approximately US$250 million, is a follow-up to Holcim’s Tuban 1 plant. This plant is also being constructed by ThyssenKrupp Resource Technologies and is scheduled to start operating in June 2013. The company’s scope of supply for both projects includes state-of-the-art equipment covering raw material preparation, clinker production, cement loading and fuel preparation, as well as the installation of a POLB laboratory automation system for quality monitoring and control. Each plant will have a production capacity of 1.7 million tpa.
[Indonesia] ThyssenKrupp Resource Technologies to construct second Tuban plant
[India] Loesche to supply two VRMs to Jamul plant
[Sri Lanka] Thatta Cement to build cement plant at Sri Lankan port
The Sri Lankan subsidiary of Thatta Cement Company Ltd, Pakistan, has signed a Business Venture Agreement with the Sri Lanka Ports Authority for the construction of a cement grinding, storage and packing plant. The plant will be located at Magam Ruhunupura Mahinda Rajapaksa Port and will include a closed circuit cement grinding mill. It will have an initial
Business Venture Agreement spans 25 years.
With more than 250 complete plant-wide electrical, control and infrastructure solutions installed in over 45 countries, ABB’s experience in cement, mining and mineral processing industries started more than 50 years ago. As a single source supplier, we ensure the selection of the right technologies and solutions, their correct dimensioning, compliance with environmental conditions as well as the implementation of industry dedicated smart solutions. All of this leads to maximizing your plant’s availability and reducing energy consumption adding up to substantial capital savings. For more information, visit us at www.abb.com/cement
Main Technology Center for electrical,control and instrumentation systems5405 Baden 5 Dättwil, [email protected]
Substantial capital savings?
Absolutely.
World Cement[May 13]12 |
May 2013
WORLD NEWS
[Turn to page 17] Imran Akram examines
developments in global cement trade.
[Asia] FRITZ & MACZIOL wins order for Holcim’s Tuban plant
Holcim has awarded FRITZ & MACZIOL a contract to install the VAS logistics solution at the Tuban cement plant in Indonesia. The order follows the introduction
order, FRITZ & MACZIOL Asia is working with the SAP Competence Center in Bangkok, with whom it had
Bahasa language.
has set up a separate team at FRITZ & MACZIOL Asia in Manila. To begin with, the team will include two
24-hour support to European VAS users.
[UK] Cemex UK recognised for its fleet operations
Gold Status in Transport for London’s Fleet Operators Recognition
the required standards related to lawfulness,
than 1900 companies are
member since 2008 and is
The cement manufacturer has a
2 emissions
[Africa] Bricking Solutions forms partnership with the Dickinson Group
installation equipment. A smelter and mineral processing
the cement and lime, iron, ferrochrome, paper and pulp industries.
SICK Process Automation DivisionUnited States - Houston | Minneapolis | 281-436-5100Canada - Toronto | Calgary | 855-742-5583www.sicknorthamerica.com | [email protected]
Low Maintenance Mercury Monitoring
Mercury monitoring for compliance and process control applications requires precise analyzer technology that is designed to minimize maintenance costs and increase availability. The MERCEM300Z from SICK was designed to meet the challenges of continuous mercury monitoring without daily or weekly maintenance. Its patented technique of simultaneous mercury conversion and measurement ensures accurate results (high temperature converter transforms Hg compound into measurable elemental Hg at approximately 1,830oF). The innovative Zeeman measurement technique offers low cross sensitivities and no mechanical parts to exchange. Field tested maintenance intervals of greater than 4 months. Complies with Performance Spec 12A.
Next Generation Mercury MonitoringMERCEM300Z.
SICK is your single source provider for emissions monitoring and process control: in-situ and e tractive gas analysis dust monitoring ow measurement and plant wide monitoring systems. See our additional products at www.sicknorthamerica.com.
VDMA is opening a representative office in Sao Paulo, Brazil, which will be headed by Thomas Junqeira Ayres Ulbrich. With the establishment of this new site, VDMA will be represented with its own offices in all of the BRIC countries.
Thermoteknix Systems Ltd has received ISO 9001 certification for its Quality Management System.
UK-based Instarmac Group plc has been recognised by The Times’ annual ‘Top 100 Best Small Companies to Work For’. This is the fourth time that the company has been featured on the list. It was placed at number 64, its highest ranking to date.
CalPortland Company has been awarded the 2013 Energy Star® Sustained Excellence Award by the US Environmental Protection Agency. This is the ninth consecutive year that the company has been recognised with an EPA Energy Star Award at national level, the last seven of which have been for Sustained Excellence.
World Cement[May 13]14 |
May 2013
WORLD NEWS
[Worldwide] Industry appointments
Wahl Refractory Solutions has announced a number of new appointments. Angela Rodrigues-Schroer has taken up the role of Director of Research and Development, Gilles Mercier will serve as Industrial Sales and Marketing Manager and Thomas Roloson has been appointed as Vice President of Sales.
A TEC GRECO has announced that Peter Schwei has been appointed as Sales and Technical Managing Director, supporting Torsten M. Offtermatt in the management team. He will take up the post from 3 June 2013, and will be based in Gödersdorf, Carinthia.
Christoph Voutsinas has joined A TEC as Global Sales Manager. He will be based in the company’s
for the coordination of sales activities of A TEC and A TEC GRECO worldwide.
Adriano Greco has left A TEC GRECO, resigning his operative functions in Brazil but remaining as a shareholder in the company. He has joined Gebr. Pfeiffer, Inc. as Sales Director for the South American market.
Dr Juergen Pankratz has been appointed as the
Verder Group.Cimpor has appointed Francisco Saudade e Silva
Lopes Sequeira as Deputy Company Secretary.
Cemex registered a 27% alternative fuel substitution rate for cement manufacture in 2012.
[Europe] Verder Scientific Division expands
The Dutch Verder Group has widened its product portfolio to include high-temperature material testing and physiochemical analysis, in addition to its laboratory and analytical technology.
has expanded to include Endecotts Ltd, Eltra GmbH and Carbolite Ltd. Retsch and Retsch Technology have been
which specialises in elemental analysis of organic and
Retsch in Germany. The latest acquisitions and inclusion
will help the Verder Group to strengthen its position as a supplier of system solutions for sample preparation and the analysis of solids.
[USA] Cemex signs research agreement for alternative fuels study
Cemex has signed a collaboration agreement with the Earth Engineering Center (EEC) at Columbia University and City College of New York, USA. A year-long study will be carried out that will research the life cycle effects of alternative fuel use in cement production. It will focus on waste combustion technologies that have been introduced in Cemex kilns in the US and Mexico, and aims to enhance understanding of the role that alternative fuels play in both society and the environment. Professor Nickolas Themelis of Columbia University and Professor Marco Castaldi of the City College of New York will lead the investigation.
Cemex registered a 27% alternative fuel substitution rate for cement manufacture in 2012 and is on target to reach a 35% fuel substitution rate by 2015. Since 2005, the company has invested over US$175 million into adapting its production process and installing equipment in order to use alternative fuels in its cement kilns.
burning for
1980, Kogushi Okinoyama, Ube city, Yamaguchi Prefecture 755-8633 JapanTel: +81-836-22-6293, Fax: +81-836-22-6489
Website: http://www.ubemachinery.co.jp/ E-Mail: [email protected]
UBE VERTICAL MILL| Search
[Imran Akram], IA Cement Ltd, UK, examines developments in international cement trade.
IntroductionCement trading represents a small but vital part of our industry. According to our estimates, total cement trading accounts for around 3% of total cement volumes. It performs the vital role of allowing surpluses and shortages to be ironed out across countries. After declining 20% from peak, pre-credit crunch levels, trading volumes began to improve in 2012 and we anticipate a further increase in 2013.
In 2011 we estimate that 130 – 135 million t of cement was moved across borders with the following breakdown:
Around one-third was moved by truck or barge across countries sharing a border.
Circa two-thirds was seaborne cement.
The seaborne trade was split approximately between clinker (25%), bulk cement (60%) and bags (15%).
Cement trading peaked in 2007, when we estimate
have dropped in recent years, and become more local/regional. There have been two major changes worldwide. First, there has been a sharp reduction in US imports after the bursting of its housing bubble. Second, the Chinese have cut exports considerably as the government phased
exported cement. Other large import markets have seen
capacity (several countries in the Middle East).
a low-value bulky item. It accounts for only 3% of the overall shipping market. Trade is heavily concentrated in the smaller Handysize and Handymax vessels. Its dusty nature also means that shipowners typically prefer to carry other products. The low-value nature of the product also gives other commodities an edge in competing with cement as a cargo. Steel and its inputs account for around half of global trade.
PricesFigure 2 and Table 1 give our estimates for export prices (clinker, free-on-board) and regional pricing trends in the last 15 years. The last three years have seen some interesting changes among the leading exporters. Vietnam and the UAE have emerged as major exporters while traditional exporters like Indonesia/India have cut back volumes on the back of strong domestic demand.
FOB export prices dropped US$3 in 2012, due to concerted pressure from Vietnam, the UAE and Spain in the second half of the year. We expect these countries to increase exports and cause a further slight price drop in 2013. This marks a reversal of the steady increase in prices from 2010 – 11, when prices increased by a total of US$9. Energy costs were the key upward driver behind this move.
have risen sharply in several regions in the last 15 years. These include Europe, the US, India and Africa. In our view one driver of this trend has been growing industry
May 2013
KEYNOTE
| 17World Cement[May 13]
consolidation. Prices in China, the Far East and MENA remain low. In contrast, selling prices remain elevated across Latin America and Sub-Saharan Africa.
Shipping rates plummeted in 2012, as shown in Figure 3. The Baltic Dry fell almost 40% in 2012 and stands at just 880 at the time of writing. Much of this downward pressure was due to slower Chinese growth, coupled with a surge in capacity of larger vessels. The declines would arguably have been even greater, had it not been for port congestion, which typically has 5 – 8% of the shipping industry tied up at any one point in time. The smaller Handymax/Handysize vessels that dominate the cement market have been less volatile. Nevertheless, shipping rates touched very low levels in 2012 and have dropped further in the early part of 2013.
USA and China – two sides of the same coin?In 2006, cement trading in the US and Chinese markets surged to 36 million t each. The US imported this amount on the back of the housing bubble, while China
spiked dramatically. Figures 4 and 5 show the development of US imports over the last 12 years and the country comparison between 2006 and 2012.
US cement and clinker imports have averaged 20 million t in the 2000 – 2012 period. After the 2006 peak of 36 million t, imports dropped to a trough of 6.4 million t
in 2011 with a small pickup to 7 million t in 2012. During this same time period, US cement consumption declined by over 50 million t. Chinese exporters have borne the brunt of this decline, with Chinese exports to the US dropping from over 10 million t in 2006 to less than 0.5 million t last year. Canadian exports have held up as the multinationals have integrated operations
Figure 2. Clinker FOB, US$/t. (Source: IA Cement Ltd.)
Figure 1. Dry bulk cargoes by product. (Source: IA Cement Ltd.)
Other 18%
Forest Products 5%
Grain11%
Steam Coal18% Coking Coal
8%
CEMENT3%
Iron Ore29%
Steel8%
Korea20
25
30
35
40
45
50
China ThailandJapan Malaysia
Taiwan Turkey Vietnam Spain
Table 1. Regional average selling prices, US$
Cement prices US$/t
1997 2012
Western Europe 66 95
Eastern Europe 36 85
US 75 93
LatAm 102 107
China 39 52
India 40 110
Far East 68 79
MENA 58 67
Sub-Saharan Africa 100 145
Source: IA Cement Ltd
UAE
May 2013
KEYNOTE
18 | World Cement[May 13]
in North America and have always used Canadian production to supply the US market. All other major exporters have seen a sharp drop in US sales.
In time, we expect the US import market to come back strongly. We expect demand to recover and surpass previous peaks on the back of demographic growth and the continued normalisation of housing and commercial construction markets. On the supply side, capacity remains subdued with the NESHAP regulations pressuring old plants. Construction of new plants
environmental opposition. Looking at supply sources, we
would expect Canada to remain an integrated part of the US market. Mexican exports will also increase as demand in the southern states recovers. Countries such as Thailand, Sweden and Brazil are unlikely to resume large-scale exports as their domestic markets are absorbing more cement. Greece and South Korea are likely to remain long-term suppliers due to their overcapacity, notwithstanding the
also expect new suppliers to emerge from the Mediterranean, with Spain at the forefront, supplemented by Egypt and France.
While US cement imports have dropped from 36 million t to 7 million t, Chinese exports have dropped by almost the same amount, reaching a trough of
development in 2013. The drivers of the Chinese
export decline have been rather structural in nature:
The government decided in 2006 to discourage exports on the grounds that producing this extra cement was consuming a lot of coal and electricity, was damaging to
Figure 5. Top 10 US importers, 2006 vs 2012. (Source: USGS.)
Figure 4. US imports 2000 – 2014E. (Source: IA Cement Ltd, USGS.)
Figure 3. Baltic Dry Index. (Source: IA Cement Ltd, Bloomberg.)
9000
8000
7000
6000
5000
4000
3000
2000
1000
01991 1994 1997 2000 2003 2006 2009 2012
10000
5
10
15
20
25
30
35
40
02000 2001
Imports (mt)
2002 2003 2004 2005
ChinaCanada
ThailandKorea
MexicoTaiwanGreece
Colombia
VenezuelaSweden
PeruBrazil
Others
2006 (35.6Mt) 2012 (7Mt)
0 2 4 6 8 10 12
2006 2007 2008 2009 2010 2011 2012 2013E 2014E
May 2013
KEYNOTE
20 | World Cement[May 13]
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