HARD TRUTHS

Although

Cement producers are facing a difficult year in 2023, according to the World Cement Association (WCA), following the post-covid high demand of the past two years. According to WCA director Emir Adiguzel, a number of issues are set to come into play, including tighter monetary policies, increased freight rates and high costs or fluctuations in the cost of energy.

Speaking at the WCA’s annual conference last year, he told delegates that aside from pressure pushing cement producers towards higher prices, multinational cement companies will continue to divest cement assets in emerging markets, which means that players in those markets, including China, will be able to acquire cheap European cement assets.

Middle-sized cement producers may also benefit from global multinational cement producers moving out of the market.

Delegates heard that the biggest limiting factor in decarbonsing the cement industry is not technology, but the sector’s drive to act now. The conference, which took place in Dubai, heard that there were many opportunities to reduce carbon emissions through product portfolio optimisation, using alternative fuels and calcined clay or belite cement. Economic incentives were another limiting factor, as cement emits more carbon than steel.

Governments need to increase incentives including carbon pricing and green procurement for public products in order to push change to happen faster, the conference heard.