28-29 Oct, 2014 - Dubai, U A E
Pullman Deira City Centre Dubai
Pullman Deira City Centre Dubai
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South India is witnessing low cement demand and to stay profitable, many cement manufacturers in the region such as Chettinad Cements, The India Cements, Dalmia Cements and Ramco Cements have started shipping cement to Myanmar.
After Sri Lanka, Myanmar is looked upon as the next export market by the cement manufacturers of the region.
Dalmia Cement, for instance is exporting approximately 10,000 to 12,000 tons of its cement from Dalmiapuram near Trichy in central Tamil Nadu to Tuticorin port in southern Tamil Nadu, from where the shipments heads to Myanmar.
The cement market continued to see decline in the 2013-14 with Kerala cement market reporting a flat growth of about 2%, while Tamil Nadu and Andhra Pradesh (two of the biggest markets) witnessing negative growth.
In fact the cement producers in the region are said to be operating at about 55% of their actual capacities, due to the lack of demand.
Another cement manufacturer from the region - Ramco Cements has also begun exports to Myanmar and shipped about 40,000 tons by February 2014.
More on the cement market in Myanmar will be discussed in the session on 'Latest Cement Investment Destination - Myanmar' by Alok Agarwal, Independent Consultant at the upcoming 9th Middle East CemenTrade Summit on 28-29 October, 2014 in Dubai.
Contact Ms. Grace at grace@cmtsp.com.sg or call +65 6346 9147 for more details.
The domestic demand for cement in Qatar is projected to double in the next three years with a large number of big ticket infrastructure projects lined up.
Dubai-based financial services firm Arqaam Capital has predicted that Qatar's domestic construction expenditure will reach 6.9% of real GDP in 2014 from its 6.5% in 2013.
The report says that there are a slew of construction projects in the pipeline that are reported to be worth QR182bn ($49bn). This marks a rise of 15% from the 2013 numbers.
The state's construction plans itself include QR757bn ($207.9bn) worth of investments on infrastructure developments in the 2013-2018 period, of which a majority of projects are for the 2022 World Cup.
Further, the projects that are already underway is said to be worth $70bn with an average churn rate of 3-4 years. This will drive cement demand to double in the next three years.
The report also predicts cement demand growth to accelerate, delivering 9.4mtpa in consumption by FY 17.
While QNCD holds the largest market share of 62% and continues to be Qatar's largest cement producer with a production capacity of 4.4mtpa, the report also predicts that the other big player - Al Khalij Cement (with 1.8mtpa clinker capacity and 2.7mta cement production) has begun to capture the market share of QNCD in FY13.
9th Middle East CemenTrade that opens on 28-29 October, 2014 in Dubai spotlights on the Qatar's cement market via sessions on 'Perspectives on Qatar's Construction Boom & New Entrants Strategy' by Mr. Andrew Jones, Partner at Dentons & Co. and 'Cement Outlook & Growth for Qatar, Kuwait & Bahrain' by Mr. Hettish Karmani, Senior Financial Analyst, Research & Publication at Global Investment House.
Contact Ms. Grace at grace@cmtsp.com.sg or call +65 6346 9147 for more details.
Egypt's Suez Cement Group of Companies' (SCGC) reported increase in EBITDA by 18% and a 32% increase in revenues in Q2, 2014, compared to the same period in 2013. Plus, cement demand grew by 1% in H1, 2014, compared to the same period in 2013, reported the company.
However, SCGC is witnessing an overall decrease in production capacity by 55% that is caused by energy supply challenges. SCGC imported clinker to meet market demand, which only led to a rise in operational costs.
Earlier this year, Suez Cement Company announced plans to invest US$42.8m to convert 2 of its 4 plants to shift to coal based energy source instead of the currently used natural gas.
This follows the government's decision to import coal to solve power shortages.
Around US$21.4 million will be spent in the conversion process for each plant which is expected to take around 6-8 months' time. However, the company still awaits the final approval from the Ministry of Environment to use coal in the production of cement.
Meanwhile, SCGC expects the Egyptian construction industry's to recover with a slew of new investments and large-scale national projects that is expected to boost the country's economic output as well as cement demand.
More on Egypt's cement industry will be discussed at 9th Middle East CemenTrade summit opening on 28-29 October, 2014 in Dubai.
Contact Ms. Grace at grace@cmtsp.com.sg or call +65 6346 9147 for more details.
The cement demand in Oman is expected to rise at an average annual rate of 6 per cent through 2016, as per industry reports. The rise in the number of infrastructure projects, especially the Omani government investing in several transport and social development projects as well as its core oil and gas sector, will boost the demand.
This demand is expected to be largely met by two of Oman's indigenous cement companies - Oman Cement and Raysut Cement Company.
The combined annual clinker production capacity of both the companies is 6 million tons and cement production capacity of 7.2 million tons. Apart from these two local companies, several foreign cement producers also supply cement to Oman.
Both Oman Cement and Raysut only utilized about 80 per cent of their total annual capacity, producing 5.8 million tonnes of cement last year. With the rise in cement demand in Oman, they are pushing for more production with higher utilization levels and modernized facilities.
Both Oman Cement and Raysut Cement Company are expanding their production capacity. On one hand, Oman Cement has begun upgrading its Kiln-1 (expected to be completed by the first half of 2014) as well as adding a new cement grinding mill with a capacity of 150 tons per hour (expected to be operational by the end of next year). Moreover, it is also creating supporting infrastructure of cement silos and bulk dispatches and plans to modernize Line-2.
On the other hand, Raysut Cement is expanding its cement production both locally as well as overseas. It is building one cement terminal at the Duqm port in Oman and another in in Berbera Port, Somalia as well as establishing a grinding plant in Yemen in partnership with local players. Moreover, Raysut is also in the process of expanding production capacity and processes of its UAE subsidiary - Pioneer Cement.
Prospects for the Middle East cement market will take centre stage at 9th Middle East CemenTrade in Dubai on 28-29 October, 2014. Visit event website for more information.
Or enquiries can be sent to Ms. Grace OH at grace@cmtsp.com.sg or +65 6346 9147.
