World Cement Association's Forecasts for 2023

Global Cement Union Forecasts for 2023 According to a statement from the Global Cement Union, cost increases facing the sector took center stage at WCA's general assembly held in London. In his remarks at the general assembly, Adıgüzel stated that 2023 would be a difficult year for the global cement sector, that growth in global cement demand was not expected, but that companies would be forced to raise sales prices by double digits in 2023 to survive, emphasizing that there was no other way to counter rising costs. Pointing to price increases in the Turkish cement market, Adıgüzel said, "However, despite price increases, Turkey still has the lowest cement prices in the world." Noting that the period of high demand and material scarcity that had persisted over the past two years had come to an end, Adıgüzel stated that from 2023 onwards, the global cement market was entering a new phase overall. Adıgüzel said, "Going forward, there is a large amount of excess production capacity globally and most countries are turning to exports. Those unable to export may resort to capacity restrictions. In a small number of regions such as Africa, the United States and Bangladesh, cement imports will continue with fierce competition due to structural production deficits."

"Profit margins under pressure"

Adıgüzel said, "Cement producers' profit margins are under incredible pressure. Cement producers, particularly in emerging markets, are squeezed between rising intense competition on one side and abnormal increases in production costs on the other. High volatility in energy costs will cause problems in energy-intensive industries such as cement." Noting that multinational major firms were exiting cement production while emerging market cement markets would continue to lead the sector, Adıgüzel stated: "These markets, with the exception of China, will continue to lead long-term high cement demand. Companies in these countries will succeed in benefiting from a positive growth environment. Cement is essential for development in any country. It is the most important strategic factor for development everywhere in the world. While producers in Turkey, India and African countries rapidly continue their investments, some multinational cement companies in Western countries are almost ashamed to be cement producers and are exiting cement production. It appears that these multinational cement companies will continue to divest their cement assets in emerging markets, and this situation will create a unique opportunity for emerging market players to expand their portfolios in growing markets. Such as Turkey's Oyak group purchasing Cimpor from Portugal." Touching on Turkey's domestic market, Adıgüzel said, "Turkey, despite price increases, still has the lowest cement prices in the world and has maintained this position for many years." Source (AA)