Monthly Report - DECEMber 2020 Cement Update
Monthly Report December 2020 | 1 TABLE OF CONTENTS
JSW owned Shiva Cement to invest Rs 1,500 crore on clinker facility in Odisha ...... 07
UltraTech to invest Rs 5,477 crore towards 12.8 mtpa capacity expansion ...... 09
ACC and Ambuja Cement to invest Rs 780 crore to set up waste heat recovery ...... 10 power plants
Southern India sees boost in cement prices ...... 11
Disclaimer: The information contained in this market update is drawn from wide range of newspapers, business and trade magazines, government, company and industry association websites. While all possible care is taken to verify the correctness and authenticity of information contained in this compilation, no claim to independent authorship of articles is implied or intended. Readers are expected to make their own independent evaluation and verification of information for their use. While all information contained in this report are believed to be correct, the editors of this compilation or J.M.Baxi & Co. do not guarantee the quotes or other data
Monthly Report December 2020 | 2 PORT ANALYSIS
Cement Traffic at Indian Ports (Qty in Millions Tonnes)
Monthly Report December 2020 | 3 CEMENT TRAFFIC AT INDIAN PORTS (QTY IN MILLION TONNES)
Port Name Apr-Oct 2020 Apr-Oct 2019 Variance Y-o-Y
BEDI 0.048 0 0.048
COCHIN 0.634 0.775 -0.141
DHAMRA 0 0.213 -0.213
DHARAMTAR 0.057 0.148 -0.091
GANGAVARAM 0 0.157 -0.157
GOPALPUR 0.025 0.075 -0.05
HALDIA 0.162 0.38 -0.218
JNPT 0.309 0.522 -0.212
KANDLA 0.008 0 0.008
KAKINADA 0.224 0.128 0.096
KARAIKAL 0 0.101 -0.101
KRISHNAPATNAM 0.571 0.415 0.156
MANGALORE 0.204 0.12 0.085
MUMBAI 0.024 0.006 0.018
MUNDRA 0 0.028 -0.028
PIPAVAV 1.397 1.578 -0.181
PORBANDAR 0.033 0.054 -0.021
PORT BLAIR 0.001 0.012 -0.011
TUTICORIN 0.125 0.103 0.022
Grand Total 3.822 4.812 -0.99
Monthly Report December 2020 | 4 CEMENT IMPORTS - APR - OCT 2020 (QTY IN MILLION TONNES)
SRI LAN- IMPORTER BANGLADESH COASTAL IRAN OMAN U.A.E. KA AMBUJA CEMENT LTD. 0 0.117 0 0 0 0
GLOBAL COAL & MINING PVT. LTD. 0 0 0.028 0 0 0
GP GLOBAL ENERGY PVT. LTD. 0 0 0 0.044 0 0
JSW CEMENTS & CO. 0 0 0.029 0.028 0 0
JSW STEEL LTD. 0 0 0 0 0 0.057
PENNA CEMENT INDUS. LTD. 0.025 0.05 0 0 0 0
RAMCO CEMENTS LTD. 0 0.078 0.105 0 0 0
RINTAC TRADING PVT. LTD. 0 0 0.053 0 0 0
ULTRATECH CEMENT LTD. 0 0.505 0 0 0.021 0
ZUARI CEMENTS LTD. 0 0.003 0 0 0 0
CEMENT EXPORTS - APR - OCT 2020 (QTY IN MILLION TONNES)
EXPORTERS BANGLADESH COASTAL MAURITIUS SRI LANKA
BHARAT CEMENTS 0.046 0 0 0
BHARATHI CEMENT 0.045 0 0 0.026
MY HOME INDUS. PVT. LTD. 0.011 0 0 0
PENNA CEMENT INDUS. LTD. 0 0.2 0 0.14
RAMCO CEMENTS LTD. 0 0.078 0 0
SAURASHTRA CEMENT LTD. 0 0.033 0 0
SUNRISE MINING CO. 0 0 0.002 0
ULTRATECH CEMENT LTD. 0 0.624 0 0.752
ZUARI CEMENTS LTD. 0 0.005 0 0
Monthly Report December 2020 | 5 HIGHLIGHTS
• JSW owned Shiva Cement to invest Rs 1,500 crore on clinker facility in Odisha
• UltraTech to invest Rs 5,477 crore towards 12.8 mtpa capacity expansion
• ACC and Ambuja Cement to invest Rs 780 crore to set up waste heat recovery power plants
• Southern India sees boost in cement prices
Monthly Report December 2020 | 6 JSW owned Shiva Cement to invest Rs 1,500 crore on clinker facility in Odisha
through a combination of long-term debt and • JSW Cement Managing Director Parth Jindal equity, the company said. “Once commissioned, said,”The new clinker unit at Shiva Cement this clinker unit will service JSW Cement’s in Odisha will provide a strategic advantage manufacturing facilities across the East region to service the needs of our customers in the and is expected to create around 500 direct & region and further strengthen JSW Cement’s indirect job opportunities,” said Parth Jindal, JSW leadership position in the Green category in Cement’s managing director, during the media India.” interaction. Shiva Cement has already received some of the regulatory and statutory approvals and is on track to obtain other necessary Shiva Cement, a subsidiary of Parth Jindal-led clearances, Jindal said. The company expects JS Cement, will be investing Rs 1, 500 crore in to commission the clinker unit by the end of a 1.36 million tonne clinker unit project to be next scal. The project includes setting up of a 1 established in Sundergarh district of Odisha
Monthly Report December 2020 | 7 million tonne per annum (1MTPA) grinding unit, per day capacity Clinkerization unit and L&T has 8 MW waste heat recovery power plant, 4 MTPA been awarded the contract for Civil, Mechanical crushing plants at its dolomite and limestone & Refractory erection work of the new clinker mines. The company plans a 10 Km long unit at Shiva Cement. For JSW Cement, the new overland belt conveyor to transport limestone clinker unit being established by Shiva Cement is from the mines to the manufacturing plant and part of its strategic roadmap to achieve 25 MTPA own railway siding with 12 Km long railway capacity by 2025, with a special focus on scaling track upto Sagra station to ensure seamless up its presence in the Eastern region of India. transportation of nished goods to the market. “All business initiatives and investments are The Rs 1500 crore project will be serviced via driven to achieve the targeted nancial, production debt to the extent of Rs 1.150 crore and JSW will and sales growth position and list the company invest 150 crore through redeemable preference publicly in the next few years,” Jindal said. The shares and the remaining through a rights current expansion will also aid in a raw material issue. JSW Cement has manufacturing units integration with JSW Steel’s planned acquisition at Vijayanagar in Karnataka, Nandyal in Andhra of the 3.5 million tonne (MT) Bhushan Power and Pradesh, Salboni in West Bengal, Jajpur in Odisha Steel Ltd (BPSL) is also located in Odisha. “JSW and Dolvi in Maharashtra. “This was always the Steel is set to acquire BPSL, given that they are plan, Clinker was coming all the way from Andhra present in the same location, there will be further Pradesh and the cost was very high along with raw material integration and security for this some supply chain disruption taking place at current unit,” Parth Jindal said. Shiva Cement’s any time. This is a very strategic investment for plan to establish a new clinker unit further us,” Jindal said. Shiva Cement’s clinker project reairms the group’s commitment to investments contracts have been awarded to Thyssenkrupp in the State. The new clinker unit at Shiva Cement Industries India and Larsen & Toubro. in Odisha will provide a strategic advantage, Thyssenkrupp has been contracted to design Jindal said. and supply a new state of the art 4,000 tonnes Source: Economic Times
Monthly Report December 2020 | 8 UltraTech to invest Rs 5,477 crore towards 12.8 mtpa capacity expansion
which has picked up pace and is expected to get • Given its pan-India presence which will commissioned by FY22, in a phased manner. The be further strengthened by the capacity commercial production from the new capacities expansion, UltraTech will be well-positioned is expected to go on stream in a phased manner, to support the rising demand for cement in by Q4FY23.“This capacity addition will not impact the country, Birla added. the ongoing deleveraging program which is on track to make UltraTech debt free by the time the expansion program is completed,” the company Aditya Birla Group’s cement flagship company, statement said. Upon completion of the latest UltraTech has announced Rs. 5,477 crore of round of expansion, the Company’s capacity will investment on a mix of greenfield and brownfield grow to 136.25 mtpa, reinforcing its position as capacity expansion of 12.8 million tonne per the third largest cement company in the world, annum. This comes as the rst major investment outside of China. Several cement companies had of this size by a cement maker in recent shelved their expansion plans due to a sluggish years. “This significant investment in a core demand growth in FY20, followed by an economic infrastructure sector will accelerate the wheels slowdown during the rst half of FY 21 due to the of economic activity and aid the kickstart of viral pandemic-led lockdown. However, analysts the private investment cycle,” said Aditya Birla and industry sources point that the healthy Group’s chairman Kumar Mangalam Birla in a operating margins reported by companies in Q2 of media statement. Given its pan-India presence FY21 have allayed fears of cashflow impairment which will be further strengthened by the capacity and companies have resumed greenfield and expansion, UltraTech will be well positioned to expansion projects that were kept on hold. “The support the rising demand for cement in the cement industry has been witnessing healthy country, Birla added. This expansion includes volumes post relaxation of lockdown, on the back the existing approval for the cement plant at Pali of the Government’s thrust on infrastructure, in Rajasthan, in addition to the company’s 6.7 underlying demand from the rural economy and mtpa capacity expansion currently underway in individual home builders,” Birla said. Uttar Pradesh, Odisha, Bihar and West Bengal, Source: Economic Times
Monthly Report December 2020 | 9 ACC and Ambuja Cement to invest Rs 780 crore to set up waste heat recovery power plants
use waste heat from various sources like cement • The WHRS will be installed at Ambuja kilns, blast furnaces, sponge iron kilns, gas Cement plants in Bhatapara (Chhattisgarh), turbines, rand convert these to power, thereby Suli and Rauri (Himachal Pradesh) and reducing consumption of fossil fuels Both the Marwar Mundwa (Rajasthan), and at ACC companies set up their rst WHRS in 2013-14 at plants in Jamul (Chhattisgarh) and Kymore Rabriyawas (Ambuja Cement) and Gagal (ACC). (Madhya Pradesh). All projects are slated to “In addition to boosting efficiency, WHRS is a be completed in the next 16 to 18 months. proven method for reducing CO2 emissions, and part of helping reach LafargeHolcim’s ambition to reduce emissions due to electricity use by 65% by 2030,” the company said. By deciding Swiss building materials maker LafargeHolcim’s to set these six WHRS, Ambuja and ACC have Indian operations, Ambuja Cement and ACC moved one step closer to realising the company’s Ltd will be investing over Rs 780 crore to set sustainability goals – reducing usage of fossil up aste Heat Recovery System (WHRS) based fuel and thus reducing carbon footprint, Akhoury power plants, a step towards reducing carbon said. In addition, to further reduce carbon emissions, the company said on Thursday. “Six footprint Ambuja and ACC have also adopted the cement plants at both Ambuja Cement and use of solar power in their cement manufacturing ACC will invest over Rs 780 crores in green process. Together, the two companies have power generation, which will lead to a signicant an operational solar portfolio of 45.2 MWp, reduction of 5.61 lakh tons of carbon footprint generating about 68.5 million units per year and annually. This is a major step in our journey a wind operating assets of 26.5 MW, generating towards reduction of carbon intensity,” said ~45 million units / year. “Both companies have Neeraj Akhoury, managing director of Ambuja undertaken several CO2 reduction measures Cement. The WHRS will be installed at Ambuja such as clinker factor reduction, thermal Cement plants in Bhatapara (Chhattisgarh), substitution rate, thermal & electrical energy Suli and Rauri (Himachal Pradesh) and Marwar efficiency, renewable energy and adoption of new Mundwa (Rajasthan), and at ACC plants in Jamul technologies. Both companies’ CO2 emissions (Chhattisgarh) and Kymore (Madhya Pradesh). so far is around 530 kg and 512 kg CO2 per ton All projects are slated to be completed in the of cementitious material for Ambuja Cement next 16 to 18 months. “This comes close on and ACC respectively. “We are striving to further the heels of parent company LafargeHolcim reduce their carbon emissions intensity to well signing the Net Zero Pledge with 2030 science- below 425 kg per ton of cementitious material based targets during the Climate Week held in from its current level by the year 2030,” the September 2020 in New York, USA,” the company company said. said in a media statement. WHR power plants Source: Economic Times
Monthly Report December 2020 | 10 Southern India sees boost in cement prices
prices in the region have been attributed to • In the 3QFY21, the average price is up by strong production discipline in the face of weak around seven per cent YoY to INR360/bag. volumes. Prices in the north, west and central India are up seven, six and five per cent YoY, respectively. In the 3QFY21, the average price Cement prices in southern India have advanced is up by around seven per cent YoY to INR360/ around 18 per cent YoY to INR393/bag (US$5.3) bag. Sales volumes are also reportedly growing in the 3QFY20-21, according to Motilal Oswal. over 10 per cent YoY in north, east and central On a QoQ basis, prices are flat as hikes in regions, while demand has remained weak in the November 2020 have offset the decline seen south and Maharashtra. in the September-October period. The strong Source: Cement.com
Monthly Report December 2020 | 11 Reports for December 2020
J. M. Baxi & Co. Monthly Agri Products Update
J. M. Baxi & Co. Monthly Automotive Logistics Update
J. M. Baxi & Co. Monthly Cement Update
J. M. Baxi & Co. Monthly Chemical Update
J. M. Baxi & Co. Monthly Coal Update
J. M. Baxi & Co. Monthly Container Update
J. M. Baxi & Co. Monthly Cruise Shipping Update
J. M. Baxi & Co. Monthly Edible oil and Extractions Update
J. M. Baxi & Co. Monthly Fertilizer Update
J. M. Baxi & Co. Monthly LNG & LPG Update
J. M. Baxi & Co. Monthly Mineral and Metal Update
J. M. Baxi & Co. Monthly Oil and Petroleum Update
J. M. Baxi & Co. Monthly Port Update
J. M. Baxi & Co. Monthly Project Cargo Update
J. M. Baxi & Co. Monthly Seaferer Insight Update
J. M. Baxi & Co. Monthly Steel Update
Monthly Report December 2020 | 12 Research Cell:
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Monthly Report December 2020 | 13