Persian Gulf-Arabian Sea and East Africa cement & clinker prices fall, Med Basin prices stabilize
CW Research's Med Basin, Persian GulfÔÇôArabian Sea and East Africa clinker November monthly bulk FOB, prompt delivery cargo price assessment shows a significant deterioration.
On a monthly basis, FOB prices for ordinary grade bulk clinker contracted again in November, dropping about one percent MoM for Med Basin exporters and falling by almost 10 percent MoM for Persian Gulf-Arabian Sea countries.
CW Research's monthly price assessment showed that while the Persian GulfÔÇôArabian Sea cement bulk FOB price marker followed a similar path, the Med Basin cement bulk FOB price marker improved by 3+ percent over October. East Africa CFR prices for bulk cement also decreased sharply MoM, extending the decline that began in the summer.
ÔÇ£An appreciating dollar is creating a universal backdraft for commodities priced in US dollars. Cement and clinker are no exceptions and pricing has been getting hammered in recent monthsÔÇØ, said Robert Madeira, CW Group Managing Director and Head of Research.
The November update also showed that in contrast to the prevailing trend of price declines, Tanzania is one of the few East African countries where cement prices have been improving. Meanwhile in the Persian Gulf - Arabian Sea region, both Turkish and Pakistani cement exporters are facing increasing competitive pressure from Iranian producers.
ÔÇ£Trading prices have reached an all-time low during the month for the regions covered, a situation which is forcing traders to look beyond their traditional export markets and expand their network. Moreover, from our on-going conversations with market participants, it is clear that intensifying competition is adding pressure on exporters to adapt their FOB pricesÔÇØ, explains Raluca Cercel, Consulting Analyst with the CW Group's European team.
CW Research's leading role in the global cement and clinker sector forms the underpinning for the monthly price assessment. Price points are based on the analyst team's on-going discussions with cement traders, producers, exporters and other stakeholders in the business and reflect a synthesis of actual traded cargos.
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CW Research's Med Basin, Persian Gulf ÔÇô Arabian Sea and East Africa Cement and Clinker price assessment product is a monthly report providing timely updates on actual pricing for cargoes with prompt delivery (next 30-60 days). The unique product synthesizes key market information based on CW Research's analystsÔÇÖ interactions with market participants, including traders, exporters, buyers and other stakeholders involved in the cement trade.
The product covers five distinct monthly price reference points for bulk cargoes:
- Med Basin: cement FOB and clinker FOB
- Persian Gulf - Arabian Sea: cement FOB and clinker FOB
- East Africa: cement CFR
The report is part of CW Research's ÔÇ£Cement and Clinker Price AssessmentÔÇØ product series providing regional insights for end-user centric pricing information for gray cement and clinker, oil well cement and India petcoke CFR.
For those interested in CW Research's price assessments, please contact the sales team at [email protected] or +1-702-866-9474. For more information: http://www.cwgrp.com/index.php/research/research-products/price-assessments/product/14-cement-clinker-price-assessment-persian-gulf-arabian-sea-east-africa