Despite producing enough cement to build a wall around the Earth multiple times over, Japan's cement industry is navigating a pivotal moment as domestic demand softens and production hovers at just over half of its massive 110-million-ton annual capacity.
Key Takeaways
- In fiscal year 2022, Japan's cement production reached 55.23 million metric tons, marking a 2.8% decline from the previous year due to reduced domestic demand.
- Japan's cement production capacity stood at approximately 110 million metric tons per annum as of 2023, with utilization rate at 50.2%.
- Clinker production in Japan totaled 47.8 million metric tons in FY2022, accounting for 86.5% of total cement production.
- Domestic cement shipments totaled 48.6 million tons in FY2022, down 3.5% YoY.
- Ready-mixed concrete demand in Japan was 120 million cubic meters in 2022.
- Construction sector accounted for 85% of cement consumption in 2023.
- Japan's cement exports reached 4.7 million metric tons in 2022, up 12% YoY.
- Cement imports into Japan totaled 6.2 million tons in FY2022, mainly clinker.
- Top export destination: Taiwan, 1.8 million tons in 2022.
- Cement industry revenue reached 1.2 trillion JPY in FY2022.
- Average cement sales price: 18,500 JPY/ton in 2022.
- Taiheiyo Cement net profit: 45 billion JPY FY2022.
- Cement CO2 emissions totaled 38 million tons in FY2022.
- Clinker factor reduced to 72% in 2022 from 75% in 2010.
- Alternative fuel usage rate: 28.5% thermal substitution in 2022.
Japan's cement industry faces declining demand while modernizing for a sustainable future.
Consumption and Demand
- Domestic cement shipments totaled 48.6 million tons in FY2022, down 3.5% YoY.
- Ready-mixed concrete demand in Japan was 120 million cubic meters in 2022.
- Construction sector accounted for 85% of cement consumption in 2023.
- Per capita cement consumption dropped to 390 kg in FY2022.
- Public works cement demand: 22.4 million tons in 2022.
- Residential construction used 15.2 million tons of cement in 2022.
- Non-residential building cement demand: 18.9 million tons FY2022.
- Cement demand in Tokyo metropolitan area: 12.1 million tons 2022.
- Blended cement demand ratio: 82% in FY2022.
- Cement consumption growth rate: -2.1% in 2022.
- Infrastructure projects consumed 28% of total cement in 2023.
- Cement sales volume to precast plants: 9.8 million tons 2022.
- Osaka region's cement demand: 7.5 million tons FY2022.
- Cement intensity in construction: 250 kg/m3 RMC average.
- Forecast cement demand FY2023: 47.8 million tons.
- Earthquake reconstruction boosted demand by 1.2 million tons in 2022.
- Cement exports as share of production: 8.5% in 2022.
- Retail cement sales: 0.8 million tons annually.
- Hokkaido cement demand: 4.0 million tons 2022.
- Kyushu demand: 8.2 million tons FY2022.
- Cement stock levels averaged 6.2 million tons in 2022.
- Chugoku demand: 6.5 million tons 2022.
- Tohoku consumption: 5.1 million tons FY2022.
- Low-carbon cement demand growing at 5% annually.
- Shikoku demand: 2.9 million tons 2022.
Consumption and Demand Interpretation
Despite a seismic bump from reconstruction efforts, Japan's cement industry is slowly setting into a more sustainable, but undeniably shrinking, footprint as its traditional construction backbone weathers demographic headwinds and a pivot toward blended products.
Environmental Impact
- Cement CO2 emissions totaled 38 million tons in FY2022.
- Clinker factor reduced to 72% in 2022 from 75% in 2010.
- Alternative fuel usage rate: 28.5% thermal substitution in 2022.
- Biomass fuel share in cement kilns: 12% in FY2022.
- CO2 emissions intensity: 0.85 tons CO2/ton cement.
- Waste co-processing: 2.8 million tons processed in 2022.
- Energy consumption per ton cement: 3,200 MJ in 2022.
- NOx emissions reduced 40% since 2000.
- SOx emissions: 0.12 kg/ton cement average.
- Dust emissions controlled to 0.02 kg/ton.
- Carbon capture pilot at Taiheiyo: 1 ton/day capacity.
- RDF usage: 1.5 million tons in kilns 2022.
- Kiln fuel CO2: 75% of total emissions.
- Water usage: 0.15 m3/ton cement.
- 2050 net-zero roadmap adopted by JCA.
- Fly ash usage: 5.2 million tons blended.
- Slag cement production: 18 million tons, reducing CO2 by 20%.
- Tire-derived fuel: 0.4 million tons used.
- Mercury emissions: <0.01 mg/Nm3 compliance.
- Green cement sales target: 30% by 2030.
- Plant afforestation: 1,200 ha managed.
Environmental Impact Interpretation
Despite emitting a stubborn mountain of 38 million tons of CO2 in 2022, Japan's cement industry is methodically chipping away at its footprint by boosting alternative fuels, expanding green cement, and even trying to capture carbon, all while carefully managing a jungle of other emissions and resource stats on its declared trek to net-zero.
Exports and Imports
- Japan's cement exports reached 4.7 million metric tons in 2022, up 12% YoY.
- Cement imports into Japan totaled 6.2 million tons in FY2022, mainly clinker.
- Top export destination: Taiwan, 1.8 million tons in 2022.
- Clinker imports from Vietnam: 2.1 million tons 2022.
- Cement export value: 15.2 billion JPY in 2022.
- Share of exports in shipments: 9.8% in FY2022.
- Imports from China: 0.9 million tons clinker 2022.
- US cement exports to Japan: 0.3 million tons 2022.
- Japan's cement trade balance: -1.5 million tons deficit 2022.
- Exports to Philippines: 0.7 million tons FY2022.
- Clinker import dependency: 13% of grinding capacity.
- Export growth to Asia: 15% in 2022.
- Imports from Indonesia: 1.4 million tons 2022.
- Cement export unit price: 32,000 JPY/ton average 2022.
- Thailand as export market: 0.5 million tons.
- Import tariffs on cement: 3.9% MFN rate.
- Exports to South Korea: 0.4 million tons 2022.
- Clinker imports total value: 18 billion JPY FY2022.
- Myanmar export volume: 0.2 million tons.
- Import from Philippines: 0.6 million tons clinker.
- Export forecast 2023: 5.1 million tons.
Exports and Imports Interpretation
Japan's cement industry is in a strangely balanced trade waltz, exporting high-value finished products to its neighbors like Taiwan while simultaneously leaning on cheaper Vietnamese and Indonesian clinker imports to keep its own furnaces humming—a pragmatic, if slightly ironic, global tango.
Financial Performance
- Cement industry revenue reached 1.2 trillion JPY in FY2022.
- Average cement sales price: 18,500 JPY/ton in 2022.
- Taiheiyo Cement net profit: 45 billion JPY FY2022.
- Industry operating margin: 8.2% in 2022.
- Sumitomo Osaka Cement revenue: 420 billion JPY.
- Fuel costs rose 22% to 250 billion JPY industry-wide.
- ROE for major cement firms: 7.5% average 2022.
- Mitsubishi Materials Cement EBITDA: 35 billion JPY.
- Cement export revenue share: 12% of total sales.
- Industry capital expenditure: 80 billion JPY in 2022.
- Ube Industries cement division profit: 12 billion JPY.
- Electricity costs: 150 billion JPY for industry.
- Debt-to-equity ratio average: 0.45 in 2022.
- Tokuyama cement sales: 110 billion JPY FY2022.
- Price increase implemented: 10% average in 2022.
- R&D expenditure: 15 billion JPY industry total.
- Taiheiyo Cement EBITDA margin: 12.1%.
- Import cost impact: +5% on COGS.
- Industry dividends payout: 25 billion JPY.
- Sumitomo ROA: 6.8% in FY2022.
Financial Performance Interpretation
The industry spent over a quarter of a trillion yen just to keep its kilns hot, proving that while you can't make an omelet without breaking eggs, you also can't make cement without breaking the bank on fuel and power.
Production and Capacity
- In fiscal year 2022, Japan's cement production reached 55.23 million metric tons, marking a 2.8% decline from the previous year due to reduced domestic demand.
- Japan's cement production capacity stood at approximately 110 million metric tons per annum as of 2023, with utilization rate at 50.2%.
- Clinker production in Japan totaled 47.8 million metric tons in FY2022, accounting for 86.5% of total cement production.
- The Kanto region produced 22.1 million tons of cement in 2022, representing 40% of national output.
- Japan's integrated cement plants numbered 18 in 2023, with a combined clinker capacity of 52 million tons.
- Grinding capacity for imported clinker reached 15.2 million tons in FY2022.
- Cement production in Hokkaido region was 4.2 million tons in 2022, up 1.5% YoY.
- Taiheiyo Cement's production was 18.5 million tons in FY2022, 33% of national total.
- Average kiln capacity per plant in Japan is 4,500 tons per day as of 2023.
- Japan's cement production per capita was 440 kg in 2022.
- Blended cement production ratio reached 78% of total in FY2022.
- Portland cement production was 12.1 million tons in 2022, down 4.2%.
- Chugoku region's cement output hit 6.8 million tons in FY2022.
- Japan's cement industry employed 12,500 workers in 2023.
- New kiln installations added 0.5 million tons capacity in 2022.
- Tohoku region cement production: 5.3 million tons in 2022.
- Sumitomo Osaka Cement produced 10.2 million tons in FY2022.
- Japan's cement production forecast for FY2023: 54.5 million tons.
- Capacity utilization rate was 49.8% in Q4 2022.
- Kyushu region's output: 8.9 million tons in 2022.
- Mitsubishi Materials Cement production: 7.4 million tons FY2022.
- Historical peak cement production: 104 million tons in 1991.
- Shikoku cement output: 3.1 million tons in 2022.
- Japan's cement plants reduced from 45 in 2000 to 28 in 2023.
- Clinker self-sufficiency rate: 92% in FY2022.
- Kansai region production: 9.7 million tons 2022.
- Asahi Cement (Ube) output: 4.8 million tons FY2022.
- Energy efficiency in cement production improved 15% since 2010.
- Tokuyama Corp cement production: 2.9 million tons 2022.
- National cement production index: 48.2 (2020=100) in 2022.
Production and Capacity Interpretation
Japan's cement industry is running at half its potential, like a giant with one foot stuck in the concrete of its own past, as it grapples with a shrinking domestic appetite that has production down to just half of its 1991 peak.
Sources & References
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