Saturday 15 June 2024

Difficult year ahead for cement industry as energy costs soar

LONDON, January 29, 2023

Leading global experts and the cement industry captains have predicted a difficult year ahead due to a number of critical issues that may result in cement producers being gradually pressured to hike cement prices. 
This was echoed at the sixth general assembly of the World Cement Association (WCA) which was held in virtual format recently.
WCA Director, Emir Adiguzel, in his presentation on the ‘Outlook for 2023’ reflected upon the past two years of post-Covid high demand, and stressed upon how 2023 will be a difficult year for the cement industry, owing to several major issues including tighter monetary policies, surge in the sea freight rates and high fluctuations in the cost of energy may. 
Secondly, Adiguzel pointed out that major multinational cement companies will continue to divest cement assets in emerging markets, thus creating a unique opportunity for players in such markets, including China, to enlarge their portfolios in positive growth markets by acquiring the cheapest European cement assets. 
Additionally, mid-size European cement producers may also benefit from recent de-cementation policies of global multinational cement producers to enlarge their portfolio, he stated.
"While we do not expect global cement volumes to increase, we expect prices to surge to double digits in 2023, as higher energy prices will have a serious impact on cement production costs," remarked Adiguzel.
His comments come ahead of the International Cement Conference on Global Trade 2023 that will be hosted by the World Cement Network (WCN), in association with WCA, from May 23 to 24 at the Hilton Bomonti, Istanbul, Turkey. 
The event will see top global firms discuss key industry issues and also give presentations in addition to round table discussions, power lunches, open contract negotiation bids for cement clinker and plenty of networking followed by a gala dinner.-TradeArabia News Service


More Construction & Real Estate Stories

calendarCalendar of Events