Leonard Hockley Dry Cargo A
review of the fundamental demand changes to the global forecast June 2024
Contents
OECD
analysis showed that G20 merchandise exports rebounded in 1Q24 after declining
in 2023. Compared to 4Q23, exports measured in current US dollars increased by
1.9% in 1Q24, boosted by strong export growth in China. G20 imports over the
same period contracted by 0.2%, partly reflecting decreasing energy prices.
The OECD
reported that GDP in the OECD area rose by 0.4% in 1Q24, slightly up on the
0.3% growth recorded in the previous quarter. Among G7 countries, growth
recovered in the UK and Germany, with GDP increasing by 0.6% and 0.2% in Q1
respectively, following contractions in Q4.
The OECD has released its latest Economic Outlook which sees signs that the global outlook has started to brighten, though growth remains modest. Global economic growth is projected at 3.1% in 2024 and 3.2% in 2025. Among major economies, there are notable expansions for India (6.6% growth in both 2024 and 2025) and Indonesia (5.1% growth in 2024 and 5.2% growth in 2025). China’s growth remains positive but is starting to slow (4.9% in 2024 and 4.5% in 2025). The US is forecast to grow by 2.6% this year, slowing to 1.8% in 2025. Meanwhile, the Euro area is expected to record modest 0.7% growth in 2024 rising to 1.5% in 2025.
Formerly
known as UNCTAD, the rebranded organisation’s latest growth forecast for the
global economy in 2024 has been raised to 2.7% following better-than-expected
performance in some large developed and emerging economies, notably Brazil,
India, Russia and the US. World economic growth is
expected to increase marginally to 2.8% in 2025.
A new report
on global economic fracturing and shifting investment patterns found that
foreign direct investment (FDI) struggles to keep pace with trade and GDP.
Since 2010, global GDP and trade have grown annually by an average of 4% and
4.2% respectively, even amidst rising trade tensions. By contrast, FDI growth
has stagnated near zero. The report highlights the vulnerability of developing
economies that are dependent on FDI. It also notes that FDI in manufacturing
has seen a significant downturn, with a compound annual growth rate of -12% in
the three years following the outbreak of the global pandemic.
Chinese industrial output grew by
6.7% year-on-year in April, up from a 4.5% expansion in March signalling a
further strengthening in the country’s manufacturing sector. However, weaker
retail sales and bleak property data suggested that overall growth momentum
remained weak.
An IMF
mission to France concluded that the economic recovery is expected to take hold
in 2025, while the disinflationary process remains on track. Real GDP growth is
projected to rise from 0.8% in 2024 to 1.3% in 2025 as financial conditions
ease and investment starts recovering, while households’ purchasing power and
consumption improve.
An IMF mission to Germany concluded
that the German economy had begun to recover following major shocks. As real
wages continue to rise, higher private consumption is expected to drive a
modest and gradual recovery in 2024, with real GDP growing by around 0.2%
supported also by external demand. GDP growth is expected to accelerate to
between 1.0% and 1.5% during 2025-26.
An IMF mission to Italy concluded that the Italian economy recovered well
from the sequential pandemic and energy price shocks on the rebound in tourism
and the provision of substantial policy support. GDP is projected to grow by
0.7% in 2024 and 2025.
The Panama Canal Authority announced
an increase in the permitted number of daily transits through the Panama Canal
from 24 to 31 vessels following the onset of the country’s rainy season. Daily
transits are also due to rise to 32 from the start of June.
An IMF mission to the UK concluded that its economy is approaching a soft
landing, with a recovery in growth expected in 2024, strengthening in 2025.
Real GDP growth is now projected to rise from 0.7% in 2024 to 1.5% in 2025 as
disinflation buoys real incomes and financial conditions ease.
The latest
April 2024 crude steel production data from the WSA had global output across 71
reporting countries at 155.7 million tonnes, down 5.0% year-on-year. Chinese
output for the month was estimated at 85.9 million tonnes, down 7.2%
year-on-year. Outside China, other major
producers that recorded year-on-year losses in April included Iran (-12.3%), South
Korea (-10.4%), Russia (-5.7%), the US (-2.8%), Japan (-2.5%), and Brazil (-2.1%).
There were year-on-year gains in Turkey (+4.5%), India (+3.6%), and the EU (+1.1%).
The WSA estimated Chinese crude steel output in the first four months of 2024
at 343.7 million tonnes, down 3.0% year-on-year. Over the same period India’s
output totalled 49.5 million tonnes, up 8.5% year-on-year, while EU production
totalled 44.4 million tonnes, down 0.6% year-on-year.
Mineral Resources has delivered the
inaugural ore shipment from its Onslow Iron project to China Baowu Steel Group. The company said that two MinRes transhipment vessels were loading about 113,000 wet
tonnes of iron ore onto a bulk carrier anchored 40 km off the port of Ashburton,
Western Australia. The Onslow Iron project, a joint venture between MinRes, Baowu, AMCI and Posco, is targeting a nameplate capacity of 35 million
tonnes/year by June 2025.
Private equity group Quinbrook Infrastructure Partners said it would start work
on an iron ore mine and a green iron processing facility in Gladstone,
Queensland. The mine will produce magnetite ore which will be made into iron
using hydrogen derived from clean energy sources. Quinbrook
is in discussion with the state-owned utility Stanwell Corporation to source
hydrogen from a proposed facility nearby.
Japanese steelmakers raised market
dominance concerns with Australian authorities over the possible takeover of
Anglo American by BHP. Australia is the largest exporter of coking coal and
supplies around 60% of Japan’s imports. BHP and Anglo American are the two
largest coking coal producers in Queensland.
ArcelorMittal,
Mitsubishi Heavy Industries and other partners have
started to operate a pilot carbon dioxide capture unit on the blast furnace at
ArcelorMittal’s Gent steel plant. The pilot unit will operate for 1-2 years
and, if successful, would progress to full-scale deployment.
The China
Iron and Steel Association expect China’s domestic iron ore concentrate supply
to rise by between 5 million and 10 million tonnes in 2024 compared to last
year. CISA also expects global iron ore supply to rise by 50 million tonnes
over the same period.
ArcelorMittal
has warned that it may not go ahead with plans to decarbonise its German steel
operations unless it gets cheap electricity and sufficient supply of green
electricity and hydrogen. The company plans to make a final investment decision
by mid-2025 at the latest.
The two
consortia developing the Simandou iron ore project in
Guinea have broken ground on building the 650 km Trans-Guinean Railway that
will link Simandou iron ore deposits to a new port to
be built at Matakong, an island near the Sierra Leone
border. The rail network will be dual-track and built to carry 10,000-tonne
train loads.
Liberty
Steel has signed a contract with CISDI China to finalise the feasibility study
on installing a new 1.5 million tonnes/year electric arc furnace at its
Hungarian subsidy to replace existing blast furnaces.
NMDC,
India’s largest iron ore miner, plans to double iron ore production to nearly
100 million tonnes over the next five to six years. Apart from expanding
existing mines, the company will look at bidding for and acquisition of new
mines.
The Indian
Steel Association has raised concerns about a surge in steel imports from China
following the US unveiling steep tariff increases on Chinese steel. The ISA has
lobbied the Indian government to intervene to curb the flow of imports of
Chinese steel products.
India’s
Steel Secretary said that steel demand in the country had grown by 13-14% in
fiscal 2023/24 and is set to continue to grow by 10% per year in the future given
the government’s focus on infrastructure.
Kobe Steel
said that it will consider building a large electric arc furnace to replace one
of its two blast furnaces in Kakogawa, to accelerate its decarbonisation drive.
This is part of a new three-year management plan to reduce CO2 emissions in steelmaking
and power generation operations.
Tata Steel
Netherland has awarded engineering contracts to Danieli and Tenova
for a direct reduction iron plant, an electric arc furnace and other facilities
at its Ijmuiden works. The Dutch government formally decided to back Tata’s
plans at the end of April and the project is scheduled for completion in 2030.
Kobe Steel
has stepped up feasibility studies on a low CO2 iron metallics project in Oman
in partnership with Mitsui ahead of starting production in 2027. The project
aims to produce five million tonnes/year of directly reduced iron via the
MIDREX process using natural gas as a reducing agent which will eventually be
replaced by using green hydrogen and carbon capture technology.
The Romanian
prime minister confirmed that a local businessman will invest 300 million euros
to resume operations at the 850,000 tonnes/year Otelu
Rosu steel mill. The plant and its electric arc furnace have been idle since
2013.
Aramco, Baosteel and the Public Investment Fund are reported to
have signed an agreement to establish an integrated 1.5 million tonnes/year
steel plate manufacturing facility at Ras al-Khair Industrial City. The plant
will also be equipped with a natural gas based DRI plant capable of conversion
to hydrogen fuel and an electric arc finance.
Bunyan Steel
is reported to be planning to start production at its new mill in Al Kharj in
October. The plant is being constructed using Chinese investment and aims to
have annual capacity of 500,000 tonnes of rebar and 300,000 tonnes of wire rod
and other sections, using continuous casting and rolling.
ArcelorMittal
has begun construction of a new hybrid electric arc furnace at its Gijon plant.
The furnace will have a steel capacity of 1.1 million tonnes/year and is due to
commence operations in 1Q26.
Ukrainian
mining company Ferrexpo is reported to have signed a
MoU with Germany’s Salzgitter to expand the supply of DRI-grade pellets to
support Salzgitter’s decarbonisation programme.
Tata Steel
UK is reported to have reached a deal with the UK’s National Grid to supply
power for a new three million tonnes/year electric arc furnace at its Port
Talbot plant from 2027. As we reported last month, Tata has told steel unions
it will close its two remaining blast furnaces this year as planned. Blast
Furnace No.5 will shut down by the end of June and Blast Furnace No.4 will
close by the end of September.
US President Biden has announced
steep tariff increases on an array of imported Chinese products that was
justified on the grounds that China was stealing US intellectual property. The
proposal to raise tariffs on certain Chinese steel and aluminium products from
7.5% to 25% made on the campaign trail in April will now take effect this year.
US Steel
reported that it has started to produce direct reduced iron pellets at its Keetac plant in Minnesota. The plant will have a capacity
of around four million tons/year and has the option to produce either DRI-grade
pellets for use in electric arc furnaces or iron ore pellets for use in blast
furnaces.
Liberty
Steel said that it will temporarily pause its wire rod manufacture in
Georgetown, South Carolina as production costs exceeded the lowered selling
price of wire rod following a surge in imports. Maintenance work will be
carried out during the shutdown.
The Australian government has postponed the planned closure of its largest coal-fired power station, the Eraring plant in New South Wales, from 2025 to 2027 in reaction to a looming energy shortfall.
The China Coal Transportation and Distribution Association said that the
country’s hydropower generation recorded a sharp increase from late April which
is likely to continue, leading to lower-than-expected demand for coal at power
plants. Hydropower in the last third of April was up 42.9% year-on-year and is
expected to maintain double-digit growth. Water levels and reserves at the
Three Gorges Dam, the world’s largest hydropower plant, were up 47.8% year-on-year
as of mid-May.
Germany’s energy regulator said that
the country will need to increase the amount of coal-fired power plants it has
on standby to ensure sufficient energy supply during future cold snaps. The
regulator projected that the country would need 9.2 gigawatts to cover forecast
shortfalls in wind and solar generation over the 2026-27 winter period.
Japan’s top power producer JERA announced that it plans to invest the
equivalent of US $32.4 billion over the coming decade into renewable energy and
new fuels such as hydrogen and ammonia, as well as LNG. JERA aims to phase out
inefficient coal-fired power plants by fiscal 2030 and convert all other
coal-fired power generation to ammonia by the 2040s to eliminate coal usage
completely.
The state-owned power utility Eskom
said it plans to operate certain coal-fired power plants beyond their scheduled
retirement dates to safeguard the national power grid. The extension is
expected to last until at least 2030.
The energy think tank Ember reported
that Turkey had overtaken Germany as Europe’s largest producer of coal-fired
electricity generating 36 terawatt hours in the first four months of 2024
compared to Germany’s 34.6 terawatt hours over the same period.
Ukraine’s ambassador to Australia has
appealed again to the country’s federal government for another thermal coal
shipment to help meet Ukraine’s energy needs having pleaded for help six months
earlier. However, Australia’s defence minister responded by saying that it is
focused on supplying military aid rather than providing coal.
CSX said
that it would return to normal coal export operations from its Curtis Bay coal
terminal in Baltimore in late May after work crews cleared part of the deep
channel from the wreckage of the Baltimore bridge collapse. Consol Energy has
also reported that it has resumed coal shipments from its Marine Terminal in
Baltimore.
Officials at
the US Bureau of Land Management have released a proposal to block future coal
leases on public lands in the Powder River Basin, the country’s largest coal
mining region.
Republican
attorneys general from 27 US states and industry trade groups have sued the
Environmental Protection Agency seeking to block a Biden administration ruling
requiring sweeping reductions in emissions from existing coal-fired power
stations.
The International Aluminium Institute
reported that global primary aluminium production in April rose 3.3%
year-on-year to total 5.898 million tonnes, with 59% produced in China. Global
production in the first four months of this year totalled 23.76 million tonnes,
up 4.2% year-on-year. The IAI also reported that global alumina
production in April totalled 11.554 million tonnes, down 0.6% year-on-year.
Global alumina production in January to April 2024 totalled 46.734 million
tonnes, up 2.7% year-on-year.
Rio Tinto
has declared force majeure on third-party contracts for alumina exports from
its refineries in Queensland due to restricted gas supplies at its operations
following the impact of fires on the Queensland gas pipeline in early March.
The pipeline is expected to return to normal usage in the second half of 2024.
China imported 1.49 million tonnes of
unwrought aluminium and products in the first four months of 2024 according to
General Administration of Customs, up 86.6% year-on year.
China’s primary aluminium production
in April 2024 totalled 3.58 million tonnes according to the National Bureau of
Statistics, up 7.2% year-on-year.
The industry
association European Aluminium has reiterated its call for sanctions on Russian
aluminium metal noting that it is getting harder and harder to justify the
continued exclusion of aluminium ingots, slabs and
billets from the scope of EU sanctions on Russia.
Trimet
Aluminium said that it intends to ramp up aluminium production at its plants in
France and Germany to full capacity of 540,000 tonnes/year by mid-2025
following a decrease in electricity prices. The company had been running its
plants at less than 50% of capacity over the past two years.
Mexico has
removed import tariffs of 35% on primary aluminium and 20% 0n primary alloy from
countries with which it does not have a trade agreement due to aluminium
shortages for its auto and electronics industries.
Glencore and
Russia’s Rusal have extended their long-term supply contract for the delivery
of more than one million tonnes/year of aluminium for at least a year. The deal
has been reportedly rolled over into 2025 and early 2026 despite Rusal shipping
only a fraction of the agreement’s maximum volumes.
The FAO’s World Food Price Index edged
higher in April averaging 119.1 points, up 0.3 points from a revised March
level. The FAO cereal index rose by nearly 0.3% in April. During the month
global wheat export prices stabilised as strong competition among major
exporters offset concerns over crop conditions in the EU, Russia
and the US. Meanwhile, maize export prices increased reflecting robust import
demand, infrastructure damage in Ukraine and concerns about production in
Brazil ahead of the main harvest.
In another report, the FAO raised
marginally its forecast of world cereal production in 2023/24 to 2.846 billion
tonnes, mainly due to revisions to rice production in Myanmar and Pakistan.
Looking at
wheat export trade, the USDA expects overall trade to rise modestly in 2024/25
by 0.35 million tonnes from the previous season. Trade gains in million tonnes
were shown for Argentina (+2.5), Australia (+2.0), the US (+1.5), Kazakhstan
(+1.0), and Canada (+0.5) which were partially offset by trade losses for
Ukraine (-3.5), Russia (-1.5) and the EU (-1.0). The USDA’s coarse grain
forecasts for 2024/25 were marked down by 5.76 million tonnes on 2023/24 with
falls in exports for the main producing nations apart from the US and EU. The
USDA was particularly bullish on Chinese imports of maize (see commentary under
China). 2024/25 rice trade was marked up modestly on 2023/24. Indian rice
exports were increased by 2 million tonnes to 18 million tonnes on the
expectation of a record crop, but this was partially offset by modest cuts in
exports from other major rice producers.
The USDA
expects strong growth in in soybean exports in 2024/25, up by 7.73 million
tonnes to just over 180 million tonnes. Compared to 2023/24, soybean export
trade was marked up in million tonnes for the US (+3.4), Brazil (+3.0),
Argentina (+0.9) and Paraguay (+0.3). As with maize, the USDA has a much more
bullish view on Chinese soybean exports than Chinese authorities (see
commentary under China). As for soybean meal trade, 2024/25 global exports were
increased by 3.5 million tonnes to total 74.5 million tonnes, mainly down to
expected higher shipments out of Argentina.
The USDA has
also released its latest six-monthly sugar market update. Global sugar export
trade in 2023/24 was estimated at 68.235 million tonnes, down 5.4% on the
previous November 2023 report. The new 2024/25 global sugar export trade was
assessed at 65.825 million tonnes, down 3.5% on the revised 2023/24 estimate.
Most sugar producing counties are forecast to export lower volumes in 2024/25,
including second and third placed exporters India (-30%) and Thailand (-2%). The
prime exception is top exporter Brazil which is forecast to export 28.2 million
tonnes of sugar, up 8.7% on the previous season.
Argentina is
on track to start long-awaited maize shipments to China from July according to
the country’s grain export chamber. The two countries reached an initial
agreement last year to open up maize shipments. The
Argentine government also reported that China has authorised two varieties of
herbicide tolerant genetically modified maize for import from Argentina.
Strikes have
delayed the start of cane processing at Australia’s largest sugar producer,
Wilmar Sugar and Renewables. Industrial action is
expected to extend into early June ahead of a vote on June 10 which union
leaders expect will reject the company’s pay offer.
Heavy
flooding in early May in the southern state of Rio Grande do Sol has hit food
storage sites and hampered the movement of grain to ports. The state is a
leading producer of soybeans, rice, wheat and meat.
The grain exporters association Anec said that access
to the port of Rio Grande had been disrupted due to the closure of a local rail
line and that road blockages were forcing grain trucks to deviate an extra 400
km increasing freight costs.
Brazil’s
trade ministry announced that it has removed tariffs on non-parboiled and
polished rice with immediate effect and until the end of December 2024. The
move was aimed at preventing acute shortages of the staple food in the wake of
deadly floods in Rio Grande do Sul state which normally produces around
two-thirds of the country’s rice.
The Chinese agriculture ministry has released forecasts for
2024/25 season maize and soybeans that project imports way below USDA
provisional forecasts. The ministry estimates maize imports in 2024/25 at 13
million tonnes compared to the 23 million tonnes forecast by the USDA. The USDA
estimates 2024/25 soybean imports at 109 million tonnes, 14.4 million tonnes
higher than the Chinese agricultural ministry forecast. Interestingly, the USDA
expects Chinese grain prices will remain higher than the world market implying
that foreign maize will be cheaper than domestic supplies. Tradeviews note that the
first estimates of a new crop season tend to be speculative and are often
subject to sizeable revisions. We expect these divergences to narrow in coming
months.
The Chinese
government has approved the safety of gene-edited wheat for the first time as
it moves cautiously towards growing genetically modified food crops. China has
already approved genetically modified maize and soybean seeds that are higher
yielding and resist insects and herbicides. However, the take up has been slow
due to health and ecology concerns.
There is
speculation that the Indian government is set to abandon its 40% tax on wheat
imports and begin to import wheat after a six-year hiatus to replenish depleted
stocks and hold down prices. The president of the Roller Flour Millers’
Federation of India was reported as saying that there is now a compelling case
to remove the wheat import duty to ensure sufficient supplies.
The three
key Russian grain growing regions of Lipetsk, Voronezh and Tambov all declared
a state of emergency in early May over frosts that reportedly caused severe
damage to crops and that this will reduce this year’s
harvest. The market analysis firm SovEcon reportedly
reacted by lowering its 2024 Russian wheat production forecast from 93 to 89.6
million tonnes.
The
agriculture ministry reported that Ukrainian grain exports in the 2023/24
July-June season had reached 45.4 million tonnes by 24 May, exceeding the
previous season total of 44.6 million tonnes. The government expects a harvest
of 81.3 million tonnes of grain and oilseeds this season with a 2023/24
exportable surplus of about 50 million tonnes. However, the ministry said that
the 2024 combined grain and oilseed crop could fall to 74 million tonnes.
The USDA
reported in mid-May that US soybean sales for the 2024/25 season starting at
the beginning of September were at a 19-year low and almost two-thirds lower
than a year ago amid an absence of Chinese buyers.
Brazilian federal prosecutors have
filed a lawsuit to suspend a license given to Canada’s Brazil Potash Corp to
commence building Latin America’s largest fertiliser mine in the Amazon
rainforest this year. According to the prosecutors, the planned mine overlaps
with ancestral lands of the Mura indigenous people and the licensing must be a
federal issue to be decided by Brazil’s environmental protection agency and not
the state environmental body. As we noted last month, the $2.6 billion project is
scheduled to take four years to build and will initially produce 2.4 million
tonnes/year of potash to be sold domestically reducing dependency on imports.
Petronas has approved initial
measures for the revitalisation and future resumption of operations at its
Araucaria Nitrogenados S/A fertiliser plant. The
facility has been closed since 2020 and has a production capacity of 720,000
tonnes/year of urea and 425,000 tonnes/year of ammonia.
Canada’s Nutrien,
the world’s largest producer of potash, has idled three Brazilian fertiliser
blenders indefinitely as part of a reorganisation to weather tough market
conditions. The company said it would rely on partners and its other two
blenders in Brazil to continue to supply local customers.
Worley has been awarded a
construction contract for BHP’s Jansen Potash Mine Stage 1 project in
Saskatchewan. The mine is expected to start operations in late 2026 with a
production capacity of 4.35 million tonnes/year.
FertigHy has selected the Hauts-de-France region for its first low-carbon
fertiliser plant. The production process will use renewable and low carbon
electricity to produce hydrogen as a substitute for imported natural gas.
Construction of the 500,00 tonnes/year nitrogen-based fertiliser plant will
begin in 2027 and is scheduled to be operational in 2030.
Eurochem have signed an agreement with China National Chemical Engineering for
the design, construction and commissioning of a phosphate mine and chemical
complex in Janatas in the Jambyl
Region of Kazakhstan. On scheduled completion in 2027, the facility will
produce more than one million tonnes/year of mineral fertilisers and associated
industrial products.
QatarEnergy has signed a 15-year agreement with Koch Fertilizer to supply up to 0.74
million tonnes/year of urea that will be marketed into the US and other
international markets.
As noted above, FertigHy
is planning to build its first low-carbon fertiliser plant in France which is
expected to be operational by 2030. The company has also stated that it plans
to build a second plant in Spain to be commissioned soon after the French
facility.
Cinis Fertiliser has started production of potassium sulphate fertiliser at
its 100,000 tonne/year Ornskoldsvik facility in Sweden. All output will be
delivered to Dutch fertiliser producer Van Iperen
International, with the first shipment expected in 2Q24.
Anglo American is to slow the planned
development of its Whitby fertiliser mine by at least two years and make
substantial cuts to its upcoming investment in the project. The project
involves creating a new mine site south of Whitby and a 23-mile tunnel to
transport a naturally occurring mineral, polyhalite,
to new processing and shipping facilities on Teesside.
The Biden Administration, via the US
Department of Agriculture, is investing in domestic fertiliser projects. The
USDA is awarding US$83 million for projects in 12 states under the Fertilizer
Production Expansion Program. It is providing grants to independent businesses
to help them modernise equipment, adopt new technologies, build production
plants and more.
British
Colombia’s Forests Ministry said that changes to lumber regulations will reduce
the export of raw logs harvested in the province by requiring certain types to
undergo manufacturing first. There will be a requirement for mills to fully
manufacture lumber from cedar and cypress trees to produce items such as wood
veneer, mouldings, shingles, siding, flooring and
fencing. The rules will take effect next February and an exemption must be
obtained to export wood products that do not meet the specifications with a
fee-in-lieu of manufacturing to be paid to the province.
The British
Colombia-based Interfor Corporation announced that it
plans to reduce its lumber production by around 175 million board feet across
all regions of North America between May and September this year in response to
persistently weak market conditions. This
represents a reduction of just under 10% from its normal operations.
Canfor has
announced that it is permanently closing its sawmill in Bear Lake, British
Colombia, shutting a production line at its Northwood Pulp Mill in Prince
George, and suspending a planned $200 million state-of-the-art mill investment
in Houston, west of Prince George. The company has cited reduced timber harvest
levels for the cutbacks.
The Natural
Resources Institute Finland reported that prices for industrial roundwood rose
across all categories in April. Spruce and pine log prices were slightly lower
than last summer’s peaks, while other species surpassed last year’s highs. The
ban on Russian and Belarusian wood imports has led to a biomass shortage in the
Baltic timber market, resulting in rising prices for logs, pulpwood
and other forest raw materials.
UK-based energy
group Drax has joined state-funded nonprofit Golden State Natural Resources in
planning to build two industrial-scale wood pellet plants in California capable
of producing and exporting one million tonnes of pellets per year, primarily
for Asian markets. The goal for GSNR is to improve forest resiliency in rural
California and reduce the risk of catastrophic forest fires.
The export
value of timber and wood products from Viet Nam is estimated by the General
Department of Viet Nam Customs to reach over US$6 billion in the first five
months of this year, up 18% year-on-year.
Argentinian
cement consumption in the first four months of 2024 slumped 31.3% year-on-year
to 2.75 million tonnes, according to the country’s cement association, AFCP.
The
Bangladesh Industries Minister forecast that the country’s cement industry’s
demand for clinker will reach 25 million tonnes in 2027 due to the ongoing boom
in infrastructure development.
Brazil’s cement association SNIC reported that cement dispatches in April increased 12.3% year-on-year to 5.14 million tonnes. In the first four months of 2024, cement sales totalled 19.39 million tonnes, up a modest 0.4% on the same period last year.
JSW Cement
plans to build its first cement plant in the north of India at Nagaur, Rajasthan. It will have an initial capacity of 3.3
million tonnes/year, rising to 15 million tonnes/year by 2026. JSW’s cement
production capacity is reported to be 21 million tonnes/year, but the company
hopes to increase this to 60 million tonnes/year over the next five years.
East African
Portland Cement has restarted operations at its Athi River cement plant. The
plant’s annual cement production capacity was 310,000 tonnes but refurbishment
work is expected to boost the company’s output by 1.0 million tonnes/year over
the next two years to meet increasing regional demand.
Spain’s
cement manufacturers association Oficemen reported
that the country’s cement consumption in the first four months of this year
totalled 4.65 million tonnes, down 4.5% year-on-year. However, cement
consumption in April 2024 totalled 1.324 million tonnes, up 11.5% year-on-year.
This was the first positive month after ten months of year-on-year declines.
A local
cement association reported that Uzbekistan will commission 8 million
tonnes/year of new cement production capacity by the end of 2024 raising the
country’s total capacity to 40.8 million tonnes/year. However, projected cement
production in 2024 is 16.7 million tonnes, close to last year’s recorded cement
demand.
The General
Statistics Office estimated that Viet Nam’s cement production in the first five
months of 2024 totalled 75.7 million tonnes, up 1.9% year-on-year.