The cement market - Italy (2024)

1.2 The global market

globally, the cement market reached a total value of $***.* billion in ****. For the period ****-****, the industry is expected to grow moderately with a compound annual growth rate (***) of *.* percent. By the end of the period, the global cement market could reach a total value of more than $*** billion.

Cement Market World, ****-****, in billions of dollars IMARCGroup

Consumption

There is a slight increase in world cement consumption between **** and ****. During the period analyzed, world consumption increased from *.** billion tons to *.** billion tons, representing an overall growth of *.* percent. However, while between **** and **** consumption grew by *.*% (***), between **** and **** consumption dropped by *.*%. Cement consumption World, ****-****, in billion tons Federbeton China is by far the world's largest consumer of cement in ****. In the year analyzed, China contributed **.*% of world cement consumption, accounting for **** million tons out of **** million tons total. . In second place is India, with a total consumption in **** of *** million tons. This was followed by South America and the Middle East, where consumption was *.* percent and *.* percent of the world total. Western Europe contributed *.* percent of world consumption, or *** million tons. Cement consumption, breakdown by geographical area World, ****, % Federbeton

1.3 The Italian market

The total turnover of the cement supply chain in Italy is growing strongly. Between **** and ****, total turnover grew by **.*%, from *.** billion euros to **.** billion euros. With the exception of **** (***).

Total cement supply chain turnover Italy, ****-****, in billions of euros Fedebeton

Regarding only companies active in cement production, between **** and ****, total turnover grew by **.* percent, from €*.** billion to €*.** billion. This again shows a contraction in **** compared to **** of *.* percent. Total turnover of companies active in cement production (***) Italy, ****-****, in billion euros Istat Regarding the value and volume of cement production sold, an increase is observed for both between **** and ****, with the increase in value being more pronounced. Specifically, during the period analyzed, the value of production sold grew by **.* percent, from *.** billion euros to *.** billion euros; the volume of sales, on the other hand, grew by just *.* percent. These data make clear the role played by inflationary dynamics in the sector related to the production and sale of cement in Italy. Value and volume of cement production sold Italy, ****-****, in billions of euros and millions of tons Istat Finally, regarding the breakdown of the value of production sold among the different types of cement, in **** gray (***) cements in bags ...

1.4 International trade

to analyze Italy's trade outflows and inflows, products under HS.... are analyzed. Between **** and ****, Italy's trade position changed from net exporter to net importer. In fact, during the period analyzed, the export coverage ratio, determined by the ratio of exports to imports multiplied by ***, went from ***.*% in **** to **.*% in ****. Specifically, the value of exports increased from $***.* million to $***.* million, representing a growth of *.*%, while the value of imports grew by **.*%, from $***.* million in **** to $***.* million in ****.

Import - Export of Cement Italy, ****-****, in million euros and % Uncomtrade

In terms of exports, France is Italy's main trading partner, collecting **.* percent of total exports alone. Also taking into account data from Switzerland (***). Main destination countries for cement exports Italy, ****, % Uncomtrade On the import side, Turkey is Italy's main cement supplier. In ****, Turkey contributed **.* percent of total Italian imports, while France and Slovenia stood at **.* percent and **.* percent of the total, respectively. Once again, three countries together collect more than ** percent of the total, accounting for **.* percent of total Italian imports in this case. Main countries of origin of cement imports Italy, ****, % Uncomtrade

1.5 The consequences of the Russian-Ukrainian conflict

The outbreak of the Russian-Ukrainian conflict in February **** led to, among other things, a general increase in price indexes. The sector related to cement and concrete production is particularly affected by the consequences of the conflict. Between January **** and December ****, the producer price index for cement rose by **.* points, representing a **.* percent increase in production costs. Compared with ****, cement production costs increased by **.*%.

Producer price index for cement Italy, ****-****, base ****=*** Istat

The increase in cement producer prices can be traced first and foremost to the increase in costs for the extraction of minerals, which are crucial in the production process. Between January **** and December ****, the producer price index for mineral extraction activities increased by ** points, representing a ** percent increase in extraction costs. Compared to ****, the price increase stands at **.*%.

Output price index for other mineral extraction activities from quarries and mines Italy, ****-****, base ****=*** Istat Even more pronounced is the increase in prices for electricity supply. Between **** and the first half of ****, the average price for electricity for non-residential users in Italy rose from *.**** euros/kwh to *.**** euros/kwh, representing an increase of ***.* percent. However, the highest value is recorded in the second half of **** (***). Price of electricity for non-residential ...

2.1 The main uses of cement

Between **** and ****, cement consumption in Italy is essentially stable. During the period analyzed, total consumption increased from **.** million tons to **.** million tons, representing a slight increase of *.* percent.

Cement consumption Italy, ****-****, in million tons Federbeton

As for the destination of domestic intermediate cement deliveries, concrete batching plants collect **.* percent of the total. This is followed by building materials dealers with **.* percent and the manufacturing and precast industry with **.* percent. These three sectors together collect **.* percent of the total intermediate cement deliveries in Italy. Destinations of domestic cement deliveries Italy, ****, % Federbeton The concrete sector, one of the main segments of cement demand in Italy, is growing in terms of sales value but declining in terms of presence. Between **** and ****, the total value of concrete sales grew by **.* percent, from *.** billion euros to *.** billion euros. However, between **** and ****, the total number of enterprises decreased by *.* percent, from **** to ****.

Enterprises active in concrete production and value of concrete production sold Italy, ****-****, in thousands and millions of euros Istat As for the main destinations of concrete sales in Italy, in **** the civil engineering and public works sector collects ** percent of the total, while residential construction stands at ** percent. Non-residential construction, on the other ...

2.2 The main related markets

For the analysis of cement demand drivers, investment in construction in Italy and trends in the number of new residential and nonresidential buildings are analyzed.

Regarding the first aspect, in **** extraordinary maintenance in the residential sector gathered **.* percent of total investment in the construction sector. This was followed by non-residential building construction by private individuals and non-residential building construction by the state, with shares of **.* percent and **.* percent, respectively. Finally, new housing construction garnered **.* percent of total investment in ****. Investment in construction, breakdown by sector Italy. ****, % Ance Regarding new construction, between **** and **** there is a growth in the number of new buildings built each year. While in **** there were **,*** new buildings constructed in **** these are **,***, representing an increase of *.*%. With the exception of **** (***) the growth appears to be constant during the entire period, suggesting an increase in demand for cement in the residential construction sector.

New residential buildings and investment value Italy, ****-****, in thousands of units and billions of euros

In contrast to the residential sector, the number of new buildings in the nonresidential sector appears to be declining. Between **** and ****, the total number of new buildings dropped by **.* percent, from **,*** to *,***. In this case, the decline appears to be ...

2.3 Geographical distribution of demand

In order to visualize the geographical distribution of demand, two maps were created with the geographical distribution of new residential and nonresidential properties built in ****.

In terms of residential construction in ****, the Northwest of the peninsula garnered the highest share, accounting for **.* percent of the national total. This was followed by the Northeast and the South, where new residential construction accounted for **.* percent and **.* percent of the total. The Center collected **.* percent of the total while the Islands just *.* percent.

Analyzing new nonresidential buildings, the Northeast collected the highest share nationwide in ****, accounting for **.*% of the total. This is followed by the Northwest and the South, with shares of **.*% and **.*%, respectively. In the Islands, new construction stands at **.* percent of the total while in the Center these are just **.* percent of the national total.

2.4 New demand trends: fiber cement

Fiber cement, a composite material made of cement reinforced with cellulose fibers (***), is experiencing increasing demand in various sectors, especially in construction. This increase in interest is due to several key factors. First of all, fiber cement is valued for its durability and strength. it is known to withstand adverse weather conditions such as heavy rains, winds, and thermal variations well, while maintaining its structural integrity over time. This makes it an ideal material for use in outdoor environments, such as roofing, siding, and building facades. Second, it is a relatively lightweight material compared to other building materials, which makes it easier to transport and install. This can significantly reduce labor and construction costs, making it an economical choice for many projects. Another important aspect of fiber cement is its versatility. It can be produced in a variety of shapes, sizes, and colors, and can even be designed to resemble other materials, such as wood or stone. This aesthetic versatility makes it popular with architects and designers, who use it to create unique and customized aesthetics. Environmentally, fiber cement is considered a more sustainable choice than some other materials. The cellulose fibers used often come from renewable sources, and the manufacturing ...

3.1 The market structure

In ****, the cement supply chain in Italy involves **** enterprises with a total turnover exceeding ** billion euros. As for cement production, active enterprises under Ateco Code **.** "Cement production" are analyzed. In particular, the number of active enterprises, the number of employees in active enterprises and the legal form of activities are analyzed

Number of enterprises

Between **** and ****, there is evidence of a gradual decline in the number of active enterprises in cement production. During the period analyzed, the number of enterprises fell from ** to **, marking a **.*% contraction. Once again, **** shows the worst figure, with a decline compared to **** of **.*%, only partially recovered in **** (***), but still with values lower than ****.

Active enterprises under Ateco Code **.** "Cement production" Italy, ****-****, in number Istat

Employees Just as the number of enterprises, the total number of employees in the sector is also declining. Between l **** and **** there is an **.* percent decline in the number of employees, with the same declining from **** to ****. Again, the decline appears to be constant throughout the period, and in **** there are no particular changes that differ from the data recorded in previous years. Employment in active enterprises under Ateco Code **.** "Cement production" Italy, ****-****, in number Istat Legal form Finally, analyzing ...

3.2 The value chain

STEP *-PRODUCTION AND PREPARATION OF RAW MATERIALS

Extraction or procurement of various raw materials that can be either natural resources (***) to feed the kiln.

STAGE * - CLINKER PRODUCTION

Heating of the raw meal to evaporate water, decarbonate and form the main components of clinker (***).

Heat is produced from a mixture of conventional fuels and permitted alternative fuels (***).

Gas emissions are controlled on a continuous basis with abatement of relevant components (***) when necessary.

STAGE * - CEMENT PRODUCTION

Mixing and grinding of clinker with other raw materials (***).

QUALITY CONTROL

is carried out on all incoming materials and fuels, at each stage of the process, on clinker and cement

Source: ****

3.3 The main manufacturers

The following is a list of the main players active in cement production in Italy:

HM Italia Cementi s.p.a: is a renowned company in the building materials sector, specializing in the production of cement. Founded in ****, the company has consolidated its presence in the Italian market through a combination of technological innovation and attention to product quality. Over the years, HM Italia Cementi has distinguished itself by its ability to adapt to the changing needs of the industry, always maintaining a high standard in its productions. Its headquarters are located in an industrial region of Italy, from which it coordinates a network of production and distribution facilities well distributed throughout the country. The company is also known for its commitment to environmental sustainability, adopting eco-friendly practices and investing in technologies to reduce the environmental impact of cement production. With more than ** years of experience, HM Italia Cementi S.p.A. is a key pillar in the building materials industry in Italy, a symbol of quality, innovation and environmental responsibility.

Buzzi Unicem s.p.a: founded in ****, is one of Italy's leading companies in the building materials industry, specializing in the production of cement and concrete. With a history spanning ...

4.1 Cement production in Italy

There are several types of cement in Italy. First of all all, the first distinction to be made is that between natural cements and artificial cements. The former are obtained from rocks of sedimentary origin (***) consisting mainly of clay, limestone and iron oxide. Artificial cements, on the other hand, are obtained from the selection of silica, aluminum and iron oxide according to predetermined quantities.

Portland cement

This is probably the best-known cement by far. It is obtained by grinding clinkers composed of hydraulic calcium silicates, with the addition of gypsum and anhydrite (***), which is dosed according to the quantities needed to regulate the hydration process. It is normally used in the preparation of concrete, i.e., the typical mortar for making the load-bearing structures of houses and buildings. In this case, cement is combined with two aggregates: sand and gravel.

Rapid White Cement

fast-setting cement is used in cases where the setting process needs to be very fast, i.e., all cases where, for example, one does not have the possibility of setting up a temporary support structure and must instead rely on the rapid hardening of the binder. In practice, the main caution that must always be adhered to is ...

4.2 The prices

In relation to cement prices in Italy, the producer price indexes for cement and concrete between **** and **** are analyzed. As for the cement industry, there is a sustained increase in producer prices between January **** and January ****. Specifically, the price index shows an increase of **.* points over the period analyzed. While between January **** and January **** the index increased by **.* points, representing an increase in production costs of **.* percent, between January **** and January **** the index increased by **.* points, representing an increase in production costs of **.* percent. However, during **** there is evidence of a gradual decline in the value of the index, amounting to *.* points between January and December.

Producer price index for cement Italy, ****-****, base ****=*** Istat

The trend of prices related to concrete production basically follows that of cement. Between January **** and January ****, there is a ** percent increase in production costs, while between January **** and December ****, the cost increase is **.* percent. Again, between January **** and December ****, the price index shows a gradual decrease in prices of *.* percent. Producer price index for ready-mixed concrete Italy, ****-****, base ****=*** Istat

4.3 The Decarbonization of Industry

In ****, the European Union launchedthe Green Deal, a growth strategy aimed at transforming the EU into a resource-efficient, competitive and carbon neutral society by ****.

In Italy, the cement industry accounts for * percent of total national emissions. The industry produces a high amount of C** and **/**% of CO* production occurs in processes required for cement production. Despite this, the cement industry has defined its own decarbonization strategy that also has among its reference points the main guidelines developed internationally, including CEMBUREAU* and WBCSD*, in line with European targets to reduce CO* emissions by **% by ****.

Specifically, Scenario * is characterized by reduced reliance on natural gas, which by **** is expected to provide only **% of the total thermal energy used in the combustion process of cement plants, and reduced deployment of CCUS (***) technologies. The expected results in terms of CO* emission reduction to **** are a **% decrease in cement production. The decarbonization strategy involves the use of several operational levers i.e., targeted areas of intervention that will be able to enable the sector to reduce its carbon footprint. Specifically, the main decarbonization levers identified for the industry are: - Use of alternative fuels to replace fossil fuels: replacing fossil fuels with low-carbon fuels is one ...

5.1 Regulation

The following are the main legislative and regulatory aspects related to the production and marketing of cement in Italy:

The UNI EN ***-* standard divides cement into * main types:

I - Portland cement with at least **% clinker content; no subtype;

II - Composite Portland Cement (***) with a clinker percentage of at least **%; Composite Portland Cement having the following designations according to the type of additions:

Slag Portland cement (***): subtype abbreviations: II A/S, II B/S; Silica fume Portland cement(***): subtype abbreviation: II A/D; Pozzolan Portland cement: subtype abbreviation (***): II A/P, II B/P, IIA/Q, II B/Q; Fly ash Portland cement (***): subtype abbreviation: II A/V, II B/V, IIA/W, II B/W; Calcined shale Portland cement (***): subtype abbreviation: II A/T, II B/T; Limestone Portland cement(***): subtype abbreviation: II A/L, II B/L, II A/LL, II B/LL Composite Portland cement: subtype abbreviation: II A/M, II B/M;

III - Blast furnace cement with a percentage of blast furnace slag (***): subtype abbreviation: III A, III, B, III C

VI - Pozzolanic cement with pozzolanic material (***): subtype abbreviation: IV A, IV B

V - Composite cement obtained by simultaneous addition of Portland ...

6.1 Segmentation

• Buzzi Unicem s.p.a
• HM Italia Cementi s.p.a
• Colacem s.p.a
• Cementerie Aldo Barbetti s.p.a
• Cementeria Costantinopoli s.r.l
• Cementi Moccia s.p.a