Followers | 8 |
Posts | 744 |
Boards Moderated | 0 |
Alias Born | 07/16/2006 |
Thursday, October 09, 2008 5:23:41 AM
Note: EXP has cement plants in LaSalle Il, Laramie Wy, Fernley Nv, and joint venture with Texas Lehigh in Buda Tx... TXI has cement plants in TX with a small presence in California.
1. Currently, cement consumption in Texas significantly exceeds cement production.
Based on Texas excise tax receipts, cement consumption for 2008 will be 4-5% greater than that reported in 2007. Currently, Texas is consuming about 17.5M tons of cement/yr. It can produce about 12M tons/yr currently and 14.5M tons/yr soon. About 3.5-4M tons is shipped into Texas from Oklahoma, Arkansas, and Florida. Foreign imports have greatly diminished.
Texas 2008 cement prices increased an average of about 1% over a year ago. There was a $4/ton increase in April and a $5/ton increase in July. It is expected that the Oct 1 price increase of $10/ton will hold in South-Central Texas. An effort to add energy surcharges did not hold.
2. Construction activity in California continues to decline with the demand less than capacity.
The expectation is that if demand drops, capacity will be reduced rather than prices cut. That is because excess cement production does not create demand and market share can not be efficiently increased by cutting prices. Cement imports into California have stopped. California Portland has a cement plant in Colton that uses older technology to produce 800-900K tons/yr. Other than that there are no high costs plants in California that might close. However, it is difficult to run precalcinar plants at less than 90% capacity.
There has been a decline in realized cement prices in CA. Prices declined by an average of 8% in CA. Fifty percent of the decline was due to increased shipping costs.
Recently, the CA state budget passed and there has been an increase in bid lettings for public works. But it will take a bit of time before the money is actually spent.
3. Aggregate pricing has continued to show an upward trend.
4. Energy costs for cement, particularly electricity, were 35-40% higher than in 2007.
As natural gas prices have declined from the recent peak in the summer, electricity costs have declined as well. For TXI, a $1/Mcf increase in natural gas results in a $1.20/ton cement cost increase in CA and a $1.50/ton cement increase in TX.
About 20% of the cost per ton for cement is due to the cost of coal.
5. Some of the International cement producers that cover the entire country have announced a general price increase for Jan 1, 2009.
-----------------
The TXI Webcast can be found at http://investorrelations.txi.com/events.cfm
Recent EXP News
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 09/19/2024 08:35:30 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 09/17/2024 09:16:36 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 08/09/2024 08:06:36 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 08/07/2024 08:30:32 PM
- Form 3 - Initial statement of beneficial ownership of securities • Edgar (US Regulatory) • 08/07/2024 08:14:46 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 08/05/2024 08:45:55 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 08/05/2024 08:44:04 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 08/05/2024 08:42:46 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 08/05/2024 08:41:17 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 08/05/2024 08:39:50 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 08/05/2024 08:38:41 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 08/05/2024 08:36:53 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 08/05/2024 08:35:28 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 08/05/2024 08:33:09 PM
- Eagle Materials Declares Quarterly Dividend • Business Wire • 08/05/2024 08:15:00 PM
- Form 144/A - Report of proposed sale of securities: [Amend] • Edgar (US Regulatory) • 08/02/2024 09:15:34 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 08/02/2024 08:19:32 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 08/02/2024 08:14:55 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 07/31/2024 08:02:59 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 07/31/2024 07:59:26 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 07/30/2024 08:51:46 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 07/30/2024 10:45:30 AM
- Eagle Materials Reports Record First Quarter Results With 16% EPS Growth • Business Wire • 07/30/2024 10:30:00 AM
- Eagle Materials Schedules First Quarter Fiscal 2025 Earnings Release and Conference Call with Senior Management • Business Wire • 07/17/2024 08:15:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/17/2024 08:10:04 PM
VHAI - Vocodia Partners with Leading Political Super PACs to Revolutionize Fundraising Efforts • VHAI • Sep 19, 2024 11:48 AM
Dear Cashmere Group Holding Co. AKA Swifty Global Signs Binding Letter of Intent to be Acquired by Signing Day Sports • DRCR • Sep 19, 2024 10:26 AM
HealthLynked Launches Virtual Urgent Care Through Partnership with Lyric Health. • HLYK • Sep 19, 2024 8:00 AM
Element79 Gold Corp. Appoints Kevin Arias as Advisor to the Board of Directors, Strengthening Strategic Leadership • ELMGF • Sep 18, 2024 10:29 AM
Mawson Finland Limited Further Expands the Known Mineralized Zones at Rajapalot: Palokas step-out drills 7 metres @ 9.1 g/t gold & 706 ppm cobalt • MFL • Sep 17, 2024 9:02 AM
PickleJar Announces Integration With OptCulture to Deliver Holistic Fan Experiences at Venue Point of Sale • PKLE • Sep 17, 2024 8:00 AM