(February 2012)

Data show an increase in Brazil’s natural stone exports in 2011 by +4.22% (by value). Total exports valued at 999.65 million US-$.

With these figures, Brazil has almost caught up after the heavy losses caused by the US-American real-estate crisis. Readers will recall: in January 2007 Brazil could boast taking the magical 1-billon-$-hurdle in 2007 with exports amounting to 1,093 million US-$.

The biggest piece of the export-pie was earmarked for the USA – a problem often subsumed by the consultants as „exporting monoculture“. But the current situation has not improved much in this respect: the biggest portion of exports goes to US-American purchasers of granite slabs.

Similarly, most raw block-exports are destined for China.

Expressed in figures this means that the USA and China alone absorb 60% of stone exports. If one includes Canada and Mexico to the American continent and Taiwan and Hong Kong to Asia, exports total 75% to these 6 countries alone.

But the local Brazilian market is more than interesting what with strong economic growth (+4 %), and a market the size of an average continent preparing for such landmark events as the 2014 FIFA and the 2016 Olympics.

Many a competitor has his eye on this market as well. Imports to Brazil are increasing at a higher average rate than exports from Brazil, namely +32% by value (to a total of 87.89 million US-$). Engineered stone as well has experienced a strong increase: +20.22% by value (to a total of 30.15 million US-$).

Note that imports of raw blocks make up a whopping 20 % (from January until October 2011), meaning that Brazil’s industry has found the means to bring value added turnover back home. Conversely raw blocks make up but a small portion of total exports again keeping value added turnover at home.

The statistics imply that Brazil has invested heavily in state-of-the-art machinery and replacement – an ongoing trend, according to the consultants.

In anticipation of further increases in exports the Brazilian Ministries of Industry and Commerce (MDIC) and Itamaraty are opening chambers world-wide including in the Middle East, Africa, and Eastern Europe already under construction. A table shows the planned branch offices among which Khartoum/Sudan, Rabat/Morocco and Cape Town/South Africa as well as Bucharest/Romania and Zagreb/Croatia.

A novel means of securing the market for Brazil’s stone is the initiative by export organization Apex and Abirochas for tagging stone. „Tracing is expected to provide positive resonance“ – as soon as this year.

Informe 01/2012 (Portuguese)

Informe 13/2011 (Portuguese)

Abirochas has recently published a free Portuguese newsletter (order by E-Mail).

(January 2012)

Recent diving expeditions proved that the concept worked to plan: algae, molluscs and small crabs have already moved in making the reef their new home.

The Sylt outer reef, an area 65 km off the coast of the island of Sylt is, in fact, a marine reserve. But despite its status, the fishing and trawling industry continue to systematically destroy the natural habitat of marine wildlife in the area. The natural reef was destroyed bit by bit.

The original natural reef was made up of boulders and rocks pushed along before a glacier’s path during the ice-age. The mass ceased to move as the glacier melted and was occupied little by little by marine life, providing a home and hiding place for a wide variety of wildlife.

It was Greenpeace’s aim to reconstruct a part of the reef by dropping 320 natural stone blocks and boulders into the sea where they came to rest at a depth of 30 m.

Greenpeace (German)

Video (German)

(January 2012)

The ratification must pass parliament by June 15th. The run-up negotiations took 18 years.

Importers and exporters expect more reliability and are looking forward to a lowering of import tariffs for manufactured goods from 9.5% to 7.5%. Over all the imports, on average, duties will be lowered from the current level of 10% to 7.8%.

Raimondo Lovati, Secretary-General of the Italian trade organization Confindustria Marmomacchine representing the natural stone branch sees the opportunity of the moment: „The most important fact is that Russia will finally begin that process of defining specific regulations and business practices in line with the requisites of the most modern market economies. On the whole, it is certainly good news for Italian stone producers and stone-working machinery and equipment makers, who in 2012 will go with Confindustria Marmomacchine to the Russian tradeshows Mosbuild (in April) and Expostone (in June)”.

Critics of the Russian government were quick to point out that the commerce will never-the-less continue to suffer under corruption, cronyism and red-tape.

The stone branch in Russia

Statistics on the Russian stone industry are available in the statistical yearbook „XXII World Marble and Stone Report 2011“. 2010 was an upturn year throughout as described by author Dr. Carlo Montani: „The domestic sector has recorded a very important increase in the order of about one third, reaching a new maximum“; The bull market is credited mostly to a twofold increase in imports whereby value added products play a particularly important role. Suppliers were – in order of importance – China, India, Ukraine, Turkey and Italy.

But raw blocks, too, were imported in greater amounts and mass than in preceding years – a development that went hand in hand with an increase in investments in heavy machinery – which implies that Russia is gearing up its stone production industry. This is consistent with an increase of stone exports to Tajikistan and Turkmenistan formerly members of the Soviet Union.

Russia was among the top seven importers of technology purchasing 47 million US-$’s worth from abroad of which one third was bought from Italy.

Montani’s conclusion: „This means that investments (in Russia) go through a positive phase, after a rather long period of uncertainty.“ The stone market remains reserved for the elite although there are some tendencies toward „democratization“ as a building material, he observes.

WTO

„XXII World Marble and Stone Report“ (Aldus Casa di Edizioni, Carrara, Internet)

Russland12-1.jpg:

Moscow metro or underground in polished stone – shown here Dostojewskaja station.

Photo: A. Savon / Wikimedia Commons

(December 2011)

The standards will be fixed for the US-market – an important customer even in times of world financial crisis. But contributions are also important for another reason: other countries will soon have to set down rules, too.

The Natural Stone Council responsible for US lobbying and spreading a green image for stone, the Marble Institute of America (MIA) and the trade fair organization Veronafiere were represented on the podium.

It is not the aim of the initiators to promote the ecological aspects of various stone types, „but rather to set down what standards need to be met to produce stone in a preferable manner“, according the starting-presentation at Marmomacc last year. In other words: it’s all about the do’s and don’ts for the production and processing of stone.

Formulating the standards began in October 2010. By now there are lists showing where along the production line sustainability is an issue: the use of energy and water are central aspects as are rules regarding labour protection or banning child labour.

„Whoever jumps on the bandwagon now can effectively influence the process“ according to Professor Jack Geibig, coordinator of the project around participants. The standards should be complete by the Q2/2012.

As regards the interest of the international stone producing community, Jack Geibig is reserved: „Cooperation was not overly popular.“

Thus the Marmomacc event showed once more that the branch is reluctant to cooperate internationally. Around 20 listeners were present. A representative from Europe remarked during the course of discussion that EUROROC is working on standards in the Environmental Product Declaration (EPD) where manifold cut-sets with US standards exist.

Yet: Also Europe’s experts have not come forth with their findings and did not actively participate in the US-Regulatory proceedings.

Interested parties should get in touch with Jack Geibig (Mail, Tel: +1 865 974-6513).

In our November 2010 edition we expounded on the standards and regulatory process in detail.

(November 2011)

There will also be an increase in licences for raw-block-importing companies.

A few facts and figures from Carlo Montani’s Statistical Yearbook „Stone 2009“ with 2008′s data to set the scene: whereas India imported 202,000 t of raw blocks, China brought 3,133,000 t into the country. Italy imported 1,815,000t and even Spain brought in 853,000 t.

With these figures in mind, India’s new quotas seem like nothing to write home about. But let us take a step back and look at the big picture. As can be learned by locals, the local producing industry has suffered considerably under unfair and restrictive laws favouring a handful of leading companies but hindering the small and mid-sized enterprises.

Here are the figures: apparently there is a total demand of 1,000,000 t of natural stone within the country every year. The local industry can mine but one third due to ecological and other restrictions even forcing some quarries to close completely.

Closing the gap through imports was hitherto impossible.

The growth hindrance is an issue often brought forth by the All India Granites & Stone Association who also pointed out how companies with importing licences are favoured. Not only do these few companies profit of higher turnover owing to availability of raw material. Some even sell part of their import quota underhand at inflationary prices.

Another aspect: if import of raw material is sharply curtailed, then it should at least be possible to import the value-added end product. This is happening, in fact, by means of imports mainly from China.

For some time now, the Indian website has been addressing the government’s conscience with convincing arguments. If the government fails to allow more imports, Indian companies would have to digress to mere sales-agents. They would purchase raw blocks abroad, have them finished in China and import the value added product or sell it elsewhere as needed.

With this strong argument, India has been pulled into the middle of global industrialization (with the exception of gravestones). Many a job would become redundant.

(October 2011)

The convention lays down e.g. when a contract has been convened and what the rights and obligations of each of the parties are. Definition of notice of defects on delivery of goods with inferior quality is also provided. Not defined are such terms as misapprehension, deception and moral obligation to name but a few. These are subject to interpretation in accordance with the laws of the contracting parties.

Thus far the treaty has been ratified by nearly 80 countries. But important players the likes of Brazil, Great Britain, India and most African countries including South Africa still have not ratified the treaty. But in general it appears fair to assume that a transaction between parties will be submitted to the rules of the treaty if one of the parties belongs to a member state.

The treaty does not govern purchases by private buyers for personal use.

See University of Basel database or Wikipedia for more information.

(October 2011)

Granite finished products increased in value by +12%, but tonnage also increased +8%.

In total exports were up by +10.4% in value and +1.6% in tonnage. Exports totalled 1.654 million t amounting to a turnover of 645,585 million €.

An increase could also be noted in imports, albeit moderate: These were up +3.4% and +2.4%. An exception was granite end products (+22.8% by value, +13.3% by tonnage) for finished products of other types of stone (-19.4% by value and -6.9% by tonnage) as well as for marble slabs (value: -13.2% and -15.7% tonnage).

European countries were the major customers. IMM Carrara’s press release states Germany, Austria, France and Poland as the most important trade partners with Switzerland and Russia showing a „very positive trend“, „while Turkmenistan and Croatia stood out as lively markets but in terms of quantity and with still limited values“.

Exports to the USA were up slightly by +4.4% to a total of 83.8 million €. The reason here, too, is that better prices could be attained. The total tonnage was more or less constant +0.7%. Marble finished products were the major export item.

In the Middle East Italy could also show an increase in turnover. But the total sales to these countries remains moderate at 14 million € according to IMM Carrara.

On the other hand „as regards to China, its imports of raw marble materials are high, yet finished products are lower whereas for India imports of finished products are higher but raw material imports are not taking off.”

(September 2011)

Recently, Afghanistan has been making a concerted effort to further the country’s natural stone industry. After all, the country, albeit ravaged by a series of wars, possesses considerable reserves. „The marble industry is a significant source of national pride for Afghans, and it offers an opportunity for employment growth“, according to a U.S. American government website.

The third Afghanistan International Marble Conference was the most recent step undertaken in a series to further the branch in Afghanistan. The Conference took place under the auspices of the Kabul Government supported by the United States Agency for International Development (USAID), and the Italian embassy. 200 experts and buyers from China, India, Iran, Italy, Turkey and Turkmenistan participated.

It was the third Afghan conference for natural stone and this time it was held in the provincial capital Herat, where the Afghan-American brothers Nasim and Adam Doost opened a marble quarry under the cloak of their equity capital mining. With the help of USAID six million US $ were invested. In the near future Gaspari Menotti gang saws will be producing 2 million tons of superior quality marble per annum destined for markets around the world. This, in turn, will directly create some 140 jobs locally and up to 500 more indirectly.

The production site is a quantum leap for Afghanistan’s natural stone market. Up until now exports were limited to raw block stone to China, India, Pakistan and Turkmenistan whereby value added products were often re-imported e.g. for building hotels in the capital Kabul.

Quarries in Afghanistan also lagged behind considerably from a technical point of view. One segment of the conference was dedicated to qualification of craftsmen.

Afghanistan looks back on a long history of stone export. For centuries Afghanistan has been famous for its semi-precious lapis lazuli, often used to symbolize heaven in altarpieces, and very costly.

It is estimated that some 100 types of marble alone count to the country’s natural stone reserves. Chesht and Khogiani marble are among the superior quality types. „In 10 years the industry could be close to producing $700 million in exports, equal to more than 6 percent of current GDP“ according to a Reuters news report quoting Paul Lamoureux, a USAID consultant.

But the path may prove to be a rocky one: apart from the country’s inherent security challenges and lack of qualified craftsmen, Afghanistan’s fledgling industry faces poor transportation and a general lack of infrastructure. But according to Reuters’ dispatch, the cloud has a silver lining – hope of less red-tape and corruption comes with a cabinet shuffle which took place earlier this year bringing with it the appointment of a new minister.

3. Afghanistan International Marble Conference

Newsletter Apuo Versilia Produce (Italian)

US-Government

Reuters 

Equity Capital Group, Dubai

Afghan Ministry of Mines

US Geological Survey

British Geological Survey

Let us first turn to numbers. Less children are born in industrialized countries. At the same time, life expectancy is increasing and is higher than it ever was before. Statisticians have compiled the figures for 31 states in Europe in the table below: it is predicted that one third of the population will be 65 or older in 2060 or twice the current proportion! Today one person in six is over the age of retirement. In percentage the increase is from 17% today to an estimated 30% some 50 years hence.

Similarly, the octogenarians are on the increase: from 5% today to an estimated 12% in 2060.

The development differs according to the development of the country but a decisive trend is true for all countries on the European continent as it is for North America and Australia. The demographic shift extends all the way to South America – and even in China where the percentage of older members of the population is in on the rise as a result of the one-family-one-child-policy.

But the change will not come over night. A gradual shift over the next 50 years is to be expected. However, the branch should adjust to the change now.

The consequence: there will be a decrease in private home building. The aged do not build new houses.

Building of special homes-for-the-aged will increase – the high-classes variety resemble hotels and call for natural stone.

Conversely, modernization and refurbishment will be on the increase. Homeowners 55 and over will adjust to a new phase in life – value added modernization will reflect the increase in age. Whoever participates in such a project will hear the landlords say: „This is our last big project, after this we just want to enjoy our retirement.“

The reason is simple: with the increase in age, the realization that more and more time will be spent at home becomes prominent. And: the aged want to remain in their own home despite handicaps such as impaired sight and mobility. This is reflected across the board in all demographic surveys.

Notably with an increase in years, living goes hand in hand with a striving for comfort. The aged want to feel comfortable in their surroundings – they want their home to give them a daily „hug“, figuratively speaking. This may be the flip side of the coin of giving up work.

The home becomes a trusted companion for the next two or three decades – not just an acquaintance for a couple of years.

This is natural stone’s big chance as well as an opportunity for interior decorators. Stone is, after all, a high value and long lasting material. An increase in companies offering an interesting array of tiles or bathroom decors in stone can be noted.

Natural stone is also appreciated by the aged because they like natural materials. Plastics will hardly fit the bill.

Stone, then, departs from its traditional role as a building material and becomes more and more an element of décor. New opportunities will also open for product design as increased value is placed on aesthetics and longevity adapted to accompany owners for many years.

Longevity of natural stone is an interesting topic. Could it be that it is viewed as youthful because it is so old? Rationally speaking this seems to be a contradiction in terms. But as such it could make for effective slogans – because the feeling transmitted decides on success or failure of a slogan.

We want to touch on two more topics. Engineered stone has a good chance on the new market because the aged tend to place high value on health issues and will decide in favour of products promising germ-free surfaces.

The aged also place higher value in warmth than do younger generations – particularly in temperate and cold climates. Limestone could have a good chance here because of its aura of warmth.

We do not know for sure, if the aged living in topical climates prefer a cool atmosphere. If so, polished granite or marble would be the material of choice.

(August 2011)

The production of Granicium begins by grinding granite to various sized kernels – refuse from quarry production can be used for this, too. Then so-called effective micro organisms (EM) are added in the form of yeast cultures as well as activated water. Unlike in the case of dough, yeast does not make the mass light and fluffy, but lends cohesion.

Cohesion is what allows the pulverized granite to keep its shape. The raw mass is then subjected to high pressure with the help of a hydraulic press imitating the natural formation of rock from lava.

The moulded object is allowed to dry over a period of approx. 2 weeks and is subsequently baked at temperatures of 1,300° C in a kiln again imitating the natural evolution process of granite. This is where the kernels cinder, i.e. where the quartz particles melt at the edges and cake together.

The yeast cultures burn up and ensuing cavities are filled with surrounding material – an important step for resilience and durability as well as resistance to frost.

Considering the complex process of production Granicium is no competitor to granite. „Its niche is where the creativity of ceramics and the special properties of natural granite are sought“, according to Fabian Denk.

Granicium

Photos: Denk Ceramics