World Cement Association (WCA) Director Emir Adiguzel stated that despite the price increases, Turkiye is still the country with the cheapest cement prices in the world and it has maintained this position for many years.
According to the statement made by the association, at the general assembly of WCA held in London, the cost increases faced by the industry became the focus of the agenda.
Adiguzel, whose speech at the general assembly was included in the statement, stated that 2023 will be a difficult year for the cement industry in the world, that the global cement demand is not expected to increase, but that companies will have to increase their sales prices by double digits in 2023 in order to survive and emphasized that it is not possible to meet the increasing costs otherwise.
Pointing out that there are increases in cement prices in Turkiye, Adiguzel said, “However, Turkiye is still the country with the cheapest cement prices in the world despite price increases.”
Stating that the period of high demand and shortage of goods in the world for the last two years has come to an end, Adiguzel said that as of 2023, the cement market in the world has entered a new era in general.
Adiguzel said, “From now on, there is a large amount of excess capacity in the world and most countries tend to export. Those who cannot export may go to capacity restrictions. In a few regions such as Africa, the USA and Bangladesh, cement imports will continue with fierce competition due to the structural production deficit.”
“Profit margins are under pressure”
Adiguzel said, “The profit margins of cement producers are under incredible pressure. Cement producers, especially in developing markets, are stuck between increased competition on the one hand and abnormally increased production costs on the other. High fluctuations in energy costs will cause problems in energy-intensive industrial establishments such as the cement sector. ”
Adiguzel stated that while large multinational companies exit cement production, cement markets of developing countries will continue to lead the sector, and added saying:
“These markets, with the exception of China, will continue to lead the long-term high demand for cement. Companies in these countries will be successful in benefiting from the positive growth environment. Cement is indispensable for development in a country. It is the most important strategic element of development anywhere in the world. While producers in Turkiye, India and African countries continue their investments rapidly, some multinational cement companies in western countries are almost ashamed of being cement manufacturers and quit cement production.
It appears that these multinational cement companies will continue to sell off their cement assets in emerging markets, which will create a unique opportunity for emerging market players to expand their portfolios in emerging markets. Just like Turkiye’s Oyak group bought Portuguese Cimpor.”
Mentioning the Turkish domestic market, Adiguzel said, “Despite price increases, Turkiye is still the country with the cheapest cement prices in the world and it has been maintaining this position for many years.”
On the other hand, at the general assembly, it was announced that the “World Cement Association – International Cement Conference” will be held in Istanbul on 23-24 May.
Source: AA / Translated by Irem Yildiz