FOB cement prices increase in the Mediterranean Basin and the Persian Gulf-Arabian Sea in October

• FOB prices for bulk ordinary Portland cement increase in the Mediterranean Basin and the Persian Gulf-Arabian Sea, while CFR prices decline in East Africa
• Exports continue to rise in Saudi Arabia in September
• Cement deliveries decline in Morocco

Greenwich (CT), USA, October 18, 2022 – Cement export prices for bulk ordinary Portland cement increased by around 2 percent month-on-month, in October 2022, in the Mediterranean Basin and the Persian Gulf-Arabian Sea, according to CW Research's Cement and Clinker Price Assessments for Med Basin and the Persian Gulf & East Africa..

For bulk ordinary-grade clinker, export prices increased by around 1 percent in both regions. Meanwhile, in East Africa, CFR prices declined almost 0.5 percent in the month.

"Cement prices continue to increase as a consequence of rising inflation and gas and coal prices across several markets, as well as an increment in shipment costs”, explained Wanderson Teixeira, Business Analyst at CW Group.

Cement consumption drops for the fourth consecutive month in Spain

In Spain, cement consumption decreased for the fourth consecutive month in August, reporting a drop of more than 5 percent. Additionally, cement production declined by nearly 1 percent from January to August.

Meanwhile, cement consumption in Portugal increased by more than 2 percent year-on-year in the first eight months of 2022.

Cement deliveries decrease in Morocco in September

Cement deliveries continued to decline in Morocco. The country reported a decrease of more than 8 percent at the end of September 2022, compared to the same period in 2021. Cement sales also reported a decline, with a fall of nearly 16 percent year-on-year

Cement exports increase in Saudi Arabia

Exports of cement continue to rise in Saudi Arabia. In September alone, the country reported a year-on-year increase of almost 60 percent. On the other hand, exports from Pakistan decreased by more than 17 percent in September 2022, compared to September 2021.

Dangote Group to revive cement plants in Kenya

The Dangote Group announced plans to revive two cement plants in Kenya, in the regions of Nairobi and Mombasa, with a total combined capacity of more than 1 million tons per year.

Lybia´s Zliten Cement Company, part of the Gulf Cement Group, started production at its Zliten-based factory. During the inauguration, in late September, the company said that it wants to support the local market and achieve self-sufficiency.

Shipping market outlook

The Baltic Dry Index reached 1,873 points on October 12, an increase of 617 points compared to September 12, as shipping activity remained above expectations in the second week of the month.

Meanwhile, global freight rates continue to decrease as trade volumes slow due to reduced demand for goods. Freight rates for dry bulkers reported a decrease over the last three months as well.

The Cement and Clinker Price Assessments for Med Basin and the Persian Gulf are part of CW Research’s price assessment series for tradable commodities. The reports offer prompt cargo (next 30-60 day deliveries) pricing insights, regular monitoring of the market, and an overview of key developments that are crucial for those involved in the cement, clinker, and petcoke trade to understand. The monthly price assessments synthesize key market information based on CW Research analysts’ ongoing interactions with market participants, including traders, exporters, buyers, and other stakeholders involved in the cement, clinker, and petcoke trade.

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