Key message: Imported cement volumes increased 18% in CY2023 with port issues apparently not impacting volumes.
- Cement imports for CY2023 increased by 18% to 979kt, with 2H CY23 imports up 43% relative to 2H CY22.
- 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).
- Cement imports continue to be able to navigate the port and supply chain issues in South Africa with minimal impact. Government continues to provide no protection to local integrated cement producers from imported cement and clinker. Strain on local cement producers must be growing and potential plant closures similar to that announced by ArcelorMittal SA for the Newcastle and other long products works may well be on the cards.
- The negative impact on the South African economy caused by substituting local cement production 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.