Moody’s: European cement manufacturers face aggressive pricing
Published by Angharad Lock,
Digital Assistant Editor
World Cement,
European cement manufacturers in Indonesia are to face more aggressive pricing and lower profit margins due to the Indonesian cement market’s oversupply, according to Moody’s Investors Service. In January, the Indonesian government imposed a price cut on cement sold by state-owned companies, which resulted in a 6% fall in the average selling price.
Falk Frey, a Senior Vice President at Moody’s, said: “The unparalleled supply-demand imbalance in the Indonesian cement market will weigh on European cement companies pricing power and EBITDA margins, based on their level of exposure via regional subsidiaries, leading to a more aggressive pricing environment.”
However, the current capacity ramp-up should stabilise, and expected consumption growth should restore supply-demand balance in 2017-2018.
Edited from press release by Angharad Lock
Read the article online at: https://www.worldcement.com/europe-cis/24082015/moodys-european-cement-manufacturers-face-aggressive-pricing-422/
You might also like
Ready to revolutionise the cement industry?
Join World Cement in Lisbon, 10 – 13 March 2024, for our first in-person conference and exhibition: EnviroTech.
This exclusive knowledge and networking event will bring together cement producers, industry leaders, technical experts, analysts, and other stakeholders to discuss the latest technologies, processes, and policies being deployed at the forefront of the cement industry’s efforts to reduce its environmental footprint.
Deccan Cements Ltd awards KHD clinker grinding line upgrade
Indian cement producer, Deccan Cements Ltd, has awarded us a contract to increase capacity at an existing clinker grinding plant.