Speaking at the virtual WCA 4th General Assembly Meeting, Song Zhiping said that China has "basically put Covid-19 under control" and come out from negative impact exerted by the pandemic at the beginning of the year. He added that Covid-19 has altered global economic conditions, and the cement industry is striving to find new balance and directions amid the changes.
According to the IMF’s latest World Economic Outlook Report, global growth is projected at – 4.9% in 2020, 1.4 percentage points below the forecast at the beginning of the year. Song stated: "Closely related to the economic development, the cement industry is put under intense pressure inevitably."
He added that, during the first three quarters of 2020 Chinese GDP grew by 0.7% YoY (year-on-year), and the IMF has adjusted China’s economic growth projection for 2020 to 1.9% as well.
"It’s anticipated that China will be the only major economy that will reap positive growth, and thus will be the driving engine for the global economy," Song said. "In the 1st 10 months, Chinese cement output reached 1.92 billion tons, up 0.4% YoY, bouncing back from negative to positive; and the profits of the industry was CNY148.3bn [€18.67bn], down 1.58% year-on-year."
He added that globally, the pandemic continues at large due to multiple factors such as the downplay of the pandemic, slow response, or lack of mature public health facilities in some countries. "The challenge is going on with the uneven resumption of work and production and the decline of cement sales and revenues," he said.
Song said in his keynote address at the WCA General Assembly Meeting that, in response to the impact of COVID-19, the cement industry needs to think about how to break through traditional development patterns and reshape the new ones.
He added that one such area is in achieving a harmonious coexistence between cement production and the environment which Song believes can also contribute to the long-term development of the industry.
Song says there are several ways to achieve the co-existence. Firstly, conserving energy and reducing emissions through technology innovation and equipment R & D, and minimising consumption and emissions during production. Secondly, restoring the ecological environment in time, stepping up efforts to rehabilitate and restore quarry ecology. Thirdly, reducing environmental loads by bringing clean energy such as WHR (waste heat recovery), solar power and wind power into full use. Fourthly, promoting advanced technologies such as co-processing by cement kilns, CCUS (carbon capture, utilisation and storage), etc. and using them to clean the environment for human beings.
As part of the combat against the pandemic, many cement enterprises have used their cement kilns to treat medical waste in a safe way and thus avoiding secondary infection. "Thanks to them, the cement industry has made contributions to controlling Covid-19," said Song. "As the situation goes better, WCA has conducted Pegasus project, providing guidance to members for energy consumption and emission reduction by way of process, technology and equipment innovation and management improvement."
Due to the abrupt outbreak of Covid-19, cement demand in China plummeted in the short term. Chinese cement output dropped 29.5% in the 1st quarter, but recovered in a fast pace from April. On a whole year basis, the Chinese cement industry is operating in order according to Song.
"New capacity construction leads to overcapacity in many countries and regions," he said. "The unbalance between supply and demand deteriorates with the outbreak of the pandemic. The supply and demand pressure sustains as Covid-19 still rages in many countries. Cement enterprises...need to reshape market competition patterns, balance supply and demand, and square production with sales."
