Europe Construction Materials & Building Products: Marketing Feedback - N.America

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Europe Construction Materials & Building Products: Marketing Feedback - N.America

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20 Jul 2026 00:31:43 ET │ 10 pages

Europe Construction Materials & Building Products

Marketing Feedback - N.America

CITI'S TAKE

Investor interest in N.America (c.20 investors) was significantly higher in

the heavyside products than lightside. Key discussions included ETS

changes on cement pricing outlook, price-cost spread expectations, SoTP

discount closing. Details below. Ephrem RaviAC

+44-20-7986-2462

Carbon pricing understood as key driver of cement pricing in Europe, but ephrem.ravi@citi.com

legislation too complicated and changes create volatility around the investment Omnath Sinh

case: Most of the debate around the heavyside was around cement pricing and +91-22-4277-5027

correctly there is a wide-spread recognition that CO2 pricing has been the key driver omnath.sinh@citi.com

of cement prices in Europe. The volatility in CO2 prices earlier in the year (EUA prices

went from 92€ on the 15th of Jan to 62€ on the 19th of Mar and has since recovered

to c.80€/t) and the consequent volatility in the heavyside stocks have shaken

confidence in the investment case somewhat. However with the weakness in US

building product markets over the last year means Europe remains a relatively

better-positioned market. Lots of discussion around what the new rules on EU ETS

announced on Friday could mean for the sector (came broadly in line with

expectations in our view and will keep CO2 prices more stable at around the current

level in our view)

Volume expectations muted, pricing expectations better, price-cost spread

expectations flat: Volume expectations for the US was already weak coming into

the year and has been even weaker than expected. Hopes of volume recovery in