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Cement Production And Prices And Tends in Africa

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Africa is one of the most concerned markets in the world. In recent years, with the rapid economic development of many African countries, African countries began to make efforts in infrastructure construction, followed by a greater demand for building materials market.

If the African people want a better life, they need to build their own homeland. At present, many African countries have made the improvement of residents' living conditions a priority in their national planning and development. Every family has to build a house,while cement is the last thing you need to build a house. The following is the information about the cement market in some African countries.

2 axle cement tanker trailer

2 axle cement tanker trailer

◼️Tunisia

At present, there are 6 cement production enterprises in Tunisia, with a national output of 7.5 million tons. All business expansion and production projects must be approved by the government. Local cement sales of 6.246 million tons were the lowest among the Mediterranean coastal countries at $53 / ton (Egypt $84 / ton, Italy $117 / ton, Spain $121 / ton, France $151 / ton).

Cement exports increased from 400,000 tons in 2000 to 1.39 million tons in 2008, with the largest exporter being Oum Kelil Cement Plant, which accounted for 29.6% of the total, followed by Tunisian Artificial Cement Company, which accounted for 20.5%.

Cement consumption in China rose from 4.95 million tons in 2000 to 6.24 million tons in 2009, with the Tunis region and the Nabel region alone consuming a third of the country's production.

In 2010, the government approved the establishment of a seventh cement company,then the cement tanker trailers must be caught on. Carthage Cement Works, and announced the listing of the company, due to the growing demand and the possibility of export expansion. The Carthage cement plant is expected to start production in the second quarter of 2012 with a capacity of 2.3 million tons.

3 axle bulk cement semi trailer

3 axle 40cbm bulk cement semi trailer

◼️Ethiopia

The Ministry of Finance and Economic Development announced that Ethiopia's GDP has grown at an average annual rate of 11.18% in the past four years, among which agriculture, industry, services and investment have grown at an average annual rate of 8.5%, 9.9%, 14.65% and 31.5% respectively. It is feasible for China's building materials industry to enter the Ethiopian market.

The market of Egypt has great potential

Ethiopia is the second most populous country in black Africa, with a population of nearly 80 million. Through its economic development in recent years, Ethiopia has formed a huge consumer group. However, due to the industrial backwardness of Ethiopia, domestic production and living needs are basically met through imports. The World Bank and the International Monetary Fund, among others, have generally endorsed Ethiopia's economic reforms. At present, Ethiopia is the largest recipient of aid from the World Bank and the European Union in Black Africa. This shows that building materials industry contains huge market potential in Ethiopia.

China's building materials industry is capable of occupying the Egyptian market

China's building materials industry production after decades of exploration, the production has begun to take shape, the production system is perfect, technology and technology increasingly mature, the basic products to achieve the localization, the cost has been close to the lowest level. The industry has become an industry with certain comparative advantages in China and has the ability to enter the international market.

The enterprise's own development needs

With the rapid development of China's economy, the domestic building materials industry market is increasingly saturated, showing a trend of oversupply. In order to survive and develop, enterprises must find a new way to spread the relatively excess production capacity to new markets is also the need of their own development. With the increase of China's contracted projects in Ethiopia, the export of China's building materials industry to Ethiopia has achieved a considerable growth. Although the export of China's building materials industry to Ethiopia has increased by a large margin, its share of general trade export is still small, mainly driven by the contracting projects in Ethiopia.

4 axle cement tanker trailer

4 axle cement tanker trailer

◼️Algeria

Algeria is one of the big countries of cement production, consumption and import in Arab countries, and has huge market potential. Because a large part of the enterprise management lag behind, quite a lot of cement actually can not reach the output or quality requirements, purchase cement must issue a project approval certificate, monthly report monthly consumption plan at the same time, the domestic market is always in short supply.

Now Algeria is in national basic construction high-speed development period, especially the five-year economic development plan to build 2 million houses, Algiers loop, a new railway, dam, communication network at the same time, power and gas supply network, the expansion of the water supply network, seawater desalination, build schools and health facilities, etc, About $60 billion is expected to be spent on infrastructure,thus, annual cement demand in 2021 is estimated at 40 million tons. However, due to some state-owned cement plant equipment aging, maintenance and shutdown caused by the decline of some cement output, coupled with the market speculation and the large-scale infrastructure construction is currently being implemented in Afghanistan, the cement market will still face a tense situation in the future for a period of time.

Manufacturers can prepare to purchase or import cement transport tank semi-trailers. SUNSKY's powder cement tank trailers and cement mixer trucks have been exported to many African countries, with reliable quality and worry-free after-sales service. Many buyers have received favorable feedback.

shipping cement tanker trailer

shipping cement tanker trailer

◼️Libya

Libya is an oil economy, SUNSKY's oil tanker trailer is popular in Libya.its economic structure is very unbalanced, food is not self-sufficient, the main consumer goods rely on imports. In terms of the overall level of development, the vast majority of industrial enterprises in Libya (excluding petroleum and petrochemical enterprises), except a few enterprises in the food, steel, construction, feed and other industries, still have prospects and slight profits. At present, the vast majority of industrial enterprises are in the state of production and semi-production due to aging equipment and backward technology, and some enterprises have gone bankrupt.

With respect to building materials industry, building materials market gap is very big. In cement, for example, there was a gap of 4 million tons at one point. Libya has announced plans to spend 60 billion dinars ($49.3 billion) on housing projects in many cities across the country.

◼️Nigeria

Nigeria's federal government has called on cement producers to lower commodity prices in order to improve supplies for various infrastructure projects in the region. Nigeria's vice-president, Yemi Osinbajo, argues that cement could be cheaper if per capita consumption was boosted through concrete road construction and co-operation between local producers.

"Currently, Nigeria produces more than 40 million tons of cement per year, more than any other country in Africa," Osinbajo said at the inauguration of the Bua Cement Plant in Sokoto. Nigeria has a large cement market with an urbanization rate of 3.5%. According to statistics, Nigeria currently has a minimum per capita consumption of about 125 kg of cement and a housing deficit of about 17 million. These two reasons are key to the growth of Nigeria's cement industry.

cement mixer truck

cement mixer truck

While Nigeria's cement industry is currently facing challenges such as transportation, it remains a profitable business.Cement manufacturers and factories can consider to export bulk cement tank trailer from China.

Cement production in Africa faces many problems. These factors include high energy costs, cheap imports and overcapacity, but the continent is still attracting new entrants each year because it already has significant infrastructure projects in place and demand continues to grow year on year. However, high production costs and low import prices have plagued the development of the local cement production industry. In addition, the capacity has been increased. In 2020, the market faced other challenges from the pause in the COVID pandemic.

◼️In East Africa

In Tanzania, the country faced its most serious crisis in recent years, when all four cement producers were shut down in the second half of 2020, ostensibly for maintenance purposes. This reduced supply to the construction industry, leading to a sharp rise in cement prices and prompting the government to try to intervene and clamp down on dealers who were stockpiling goods. Surprisingly, although the county has excess capacity, as demand is about 5.5 million tons, the capacity is about 10 million tons. Lower throat prices and cheap imports mean slim margins.

Tanzania has an annual capacity of 10 million tons of cement.

The four major cement manufacturers are Twiga Cement in Dar es Salaam, Tanga Cement in Tanzania, Mbeya Cement in Mbeya and Dangote Cement in Mtwwara in the southern region.

In Kenya, cement prices have remained relatively stable through 2020, at around Ksh650 per 50 kg bag compared to unrest in Tanzania and Nigeria. The waning of investor interest is evident, with no new plants appearing recently. At Cemtech in West Pokert, a subsidiary of India's Sanghi Group sold its interest in a limestone bonanza to a local company after failing to proceed with a new cement plant in the region that was supposed to cost more than the U.S. $100 million.

Kenya has an annual capacity of 13m tonnes of cement

The long-term impact of the pandemic on Kenya's market, which is on track for sustained growth thanks to the take-off of infrastructure projects, will be minimal. Current demand is estimated at 6 million tons per year, while production capacity is 13 million tons.

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◼️West Africa

In Nigeria, the price of cement in remote areas even reached NGN4500 as the price of cement rose from NGN2600/50kg to NGN3500/50kg by the end of the year. Industry insiders said the increase was due to transport logistics, which is due to increased demand in an environment of higher fuel costs and reduced production due to plant shutdowns for maintenance. This trend has also been seen in Tanzania, where it appears to be a trend as producers choose to reduce production in order to lower prices.

The main players in Nigeria are Dangote (29 tons/year), Lafarge (10.5 tons/year) and Bua, which have a combined annual capacity of about 45 million tons, while demand is about 25 million tons.

Nigeria has an annual capacity of 45m tonnes of cement

Despite overcapacity, the country's cement prices remain high compared with its neighbors.

◼️South Africa

Overall, the South African market recovered from the pandemic by the end of the year with the launch of infrastructure and housing projects. However, as tariffs on cheap cement imports from the east expire, there are dark clouds on the horizon. The biggest risk to the industry. The feeling among industry participants is that if prices are not expanded, cheap imports will have a negative impact on the sustainability of local industries. Cheap hybrid alternatives also threaten the higher quality standards of local produce.

South Africa has an annual cement production capacity of 20 million tons.

 ◼️Imports

Across Africa, cheap cement dumped from Far Eastern markets continues to plague local industries, distorting prices and reducing demand for locally produced cement. Lack of protection for local markets threatens their viability, and as a pandemic will only exacerbate the problem, demand will be weak in 2020.

Infrastructure and housing projects will provide a ray of hope for cement production.

Cement production in Africa could face consolidation as increased production and the impact of competition force smaller producers to close. In this case, the Chinese could cause more trouble for local industries when they move in. Tanzania's ARM has been bought by a Chinese company. New companies that are more efficient and environmentally friendly will be the winners.

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