India’s per capita cement consumption is amongst the lowest in the world, and the country’s cement industry is heavily export-based. The recent decline in the export markets is proving a cause for concern for some manufacturers, although October shipment figures are generally strong.
FLSmidth has been awarded a contract worth approximately €35 million (DKK260 million) from Coastal Gujarat Power Ltd for the supply and construction of a coal handling system for the company's Ultra Mega Power Plant project in the state of Gujarat, India.
There are renewed efforts to address the problem of overcapacity in China’s cement industry. Projects are being put on hold as older plants are closed down.
Grasim Industries Ltd will transfer its cement business to its subsidiary unit Samruddhi Cement, which will eventually be merged with Ultratech Cement.
The government is attempting to pass emissions trading legislation to reduce CO2 emissions by up to 20% by 2020. A bill that rules 20% of all power must come from renewable sources by 2020 has already been passed.
The Ministry of Industry and Information Technology (MIIT) has proposed strict plans to curb severe overcapacity problems in the Chinese cement industry, preventing any province with over 1000 kg per capita of cement clinker from building new production lines during the 12th Five Year Plan.
Despite fears of an oversupply situation in the near future, Indian cement manufacturers continue to announce capacity additions on a nearly monthly basis. Many producers are also segueing into the power generation business, as a side project that may help ease production costs and generate capital.
Around the world, large volumes of cement are traded by multinational cement groups and their subsidiaries, whilst independent cement traders still have a major function when it comes to price levels and patterns of trade.
Reduced global trade and the recent announcement by China that steel and cement production will be curbed has left the shipping industry facing a potential 50% rate crash.
The slow progress of the monsoon in India has resulted in strong figures for cement manufacturers’ August shipments. High demand is reflected in the similarly strong performance of the cargo truck and rail industries.
The Philippines is experiencing increasing demand for cement. In order to meet this demand, Holcim plans to restart the second production line of its Misamis Oriental plant.
The New Zealand government wishes to increase the revenue gained from its minerals industry, given the plentiful resources available. However, much of the land in question is protected by law and as such significant changes will need to be made.