Key message: Imports stable relative to 2022. The weak ZAR has resulted in imported cement prices increasing 4% YTD.
- January to August 2023 saw imports of 652kt, flat compared to the same period in 2022. Cement imports fell 31% to 730kt for CY22. Cement imports to July 2023 are down 14% on a 12-month rolling basis.
- Vietnam continues to be the primary source of imported cement. Small amounts of cement are being imported from Mozambique and Namibia (<5% of total). Clinker imports to Port Elizabeth (for Cemza) are sourced from the Middle East (Saudi Arabia, UAE).
- The local price of imported cement is rising, allowing the local producers more leeway to increase prices. ZAR FOB prices have increased 4% YTD for imported cement (USD prices flat). The main local importer, Alpine, reports good demand for imported cement from their independent retail customers with NPC struggling to meet demand in KZN.
- The negative impact on the South African economy caused by substituting local cementproduction with imported cement was highlighted in a report released by cement manufacturer PPC in conjunction with the Centre for African Management and Markets (CAMM). The report shows a potential R2.6-billion-a-year loss in economic value in an already-strained economic environment and potential job losses of over 2200 across the PPC value chain.