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Weak demand hits cement, volumes dip in 4th quarter

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Weakening demand has hit the Indian cement sector very lately. It has seen volumes fall one per cent year-on-year (y-o-y) in the fourth quarter. After the first half of FY13, companies in the sector saw pricing power diminish. Analysts believe average cement prices have remained largely flat sequentially at Rs 288/bag (up five per cent y-o-y).

Demand for cement has grown a modest five per cent for the full year. While overall slowdown in the construction and infrastructure space has been a big culprit, shortage of other construction materials like sand and bricks have also contributed to weakness in demand. Cement demand has largely been tepid other than parts of southern and western India.

Demand collapse hasn’t been the only problem in Q4. The recent increase in bulk diesel rates, coal prices and rail freight have put additional pressure on costs, which the companies are unable to pass on to consumers.

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Concrete

Holcim UK drives sustainable construction

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Holcim UK has released a report titled ‘Making Sustainable Construction a Reality,’ outlining its five-fold commitment to a greener future. The company aims to focus on decarbonisation, circular economy principles, smarter building methods, community engagement, and integrating nature. Based on a survey of 2,000 people, only 41 per cent felt urban spaces in the UK are sustainably built. A significant majority (82 per cent) advocated for more green spaces, 69 per cent called for government leadership in sustainability, and 54 per cent saw businesses as key players. Additionally, 80 per cent of respondents stressed the need for greater transparency from companies regarding their environmental practices.

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Concrete

GCCA releases LCR system

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The Global Cement and Concrete Association (GCCA) has launched the Low Carbon Ratings (LCR) system for cement and concrete, a new global rating based on products’ carbon footprints. The system uses a clear AA to G scale to help customers prioritise sustainability in material selection across construction sectors worldwide. The GCCA says that the LCR system is designed to be easily recognisable, with a simple visual graphic that indicates a product’s rating and provides consistency and comparability to other products.

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Concrete

FLSmidth opens eco-friendly plant in Casablanca

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FLSmidth has inaugurated a €21 million mill liner manufacturing plant in Casablanca, covering 11,250m² with a production capacity of 6,500 tonnes annually. The LEED-certified facility significantly reduces carbon emissions by up to 56 per cent and fully recycles water used in the manufacturing process. Up to 250 jobs will be created in the Valparaíso region. Mikko Keto, CEO, highlighted the plant as a symbol of FLSmidth’s commitment to sustainable mining and community engagement in South America. Earlier in 2024, the Denmark-based company announced plans to sell its cement division to sharpen its focus on mining operations.

 

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