The Manufacture of Cement, Lime and Related Materials Industry In South Africa

African Industry Reports

Date

2022-04-20

Industry

Construction

Series name

manufacture-cement-lime-plaster-industry-south-africa

Country

South Africa

Category

Manufacture of Cement, Lime & Plaster

Summary

The South African cement manufacture industry is oversupplied and under threat from low-cost imports and the proliferation of low-cost blended cements. Protracted economic stagnation has hampered the recovery of the industry as important drivers, such as the poorly-performing construction industry and government infrastructure spending have provided little growth opportunity over the past five years. In the meantime, three new entrants since 2014 have put further pressure on capacity utilisation and producer prices. As one of the identified serious contributors to greenhouse gases, the impetus to mitigate the industry’s emissions rates has intensified with the introduction of carbon tax since 2019. Despite the difficult trading conditions, the industry’s recent prospects have been buoyed by government measures to develop the industry. The most significant of these has been the introduction of targeted anti-dumping measures that have protected the industry against low-priced product from Pakistan since 2015. This was followed by the prohibition on procurement of imported cement by state entities in 2021 under new localisation policies. The anti-dumping protection is currently under review with the hope of the measures being extended and protection being expanded to introduce non-targeted import tariffs. Debt restructuring to improve liquidity and operating profits by major players is positioning the industry afresh for growth, while hopes of future state protection may create an environment of improved returns to accelerate domestic investment and supply into the Southern African region.

Sample report

https://discover.sabinet.co.za/download/11971127