In a recent presentation on the “Outlook for 2023,” World Cement Association (WCA) Emir Adiguzel emphasized how 2023 will be a difficult year for the cement industry.
Reflecting on the past two years of post-Covid high demand, Adiguzel said a number of issues such as tighter monetary policies, increased sea freight rates and high fluctuations in the cost of energy may result in cement producers being gradually pressured to establish higher cement prices.
Secondly, he highlighted that major multinational cement companies will continue to divest cement assets in emerging markets, thus creating a unique opportunity for players in such markets, including China, to enlarge their portfolios in positive growth markets by acquiring the cheapest European cement assets.
Additionally, mid-size European cement producers may also benefit from recent de-cementation policies of global multinational cement producers to enlarge their portfolio.
“While we do not expect global cement volumes to increase, we expect prices to surge to double digits in 2023, as higher energy prices will have a serious impact on cement production costs,” said Adiguzel.