This week, shares in LafargeHolcim – the owner of Aggregate Industries – sank to their lowest level in more than two years, battered by a profits warning from HeidelbergCement – another cement giant, and owner of Hanson UK.
Just a day earlier, news site Global Cement had reported: "European cement producers not joking about implications of climate change legislation".
The reason for the story? Three European cement plants have been earmarked for closure this week. Cementa, a subsidiary of HeidelbergCement, is considering closing its Degerhamn plant in Sweden due to increased environmental regulations; Cemex is planning to close two plants in Spain.
Fingers are pointing to cement producers facing increased costs from trends in the EU emissions trading system. The CO2 emissions allowance price hit a high of €24/tonne in September, the highest price in a decade.
No doubt the European cement producers have charts marking the viability of their plants against the CO2 price.
The EU carbon price is expected to rise further:How many more plants in Europe are at risk to shut next?
Analysts at investment bank Berenberg said they now forecast a carbon price of 45 euros a tonne in 2019 and 65 euros a tonne in 2020…
