Cement and clinker FOB prices in the Mediterranean Basin, the Persian Gulf, and East Africa continued to increase month-on-month in September, boosted by increasing exports across key cement markets, according to CW Research's Cement and Clinker Price Assessment for Med Basin and Persian Gulf-Arabian Sea & East Africa.
Both FOB cement and clinker prices in the Mediterranean Basin region increased almost 1 percent month-on-month, while in the Persian Gulf-Arabian Sea FOB prices for cement increased over 1 percent, and for clinker, they were up by almost 2 percent compared to the previous month.
At the same time, East African CFR prices for bagged cement strengthened by less than 1 percent.
“Top cement exporters in the Mediterranean Basin continued to post robust figures, with both Turkey and Algeria’s cement exports rising sharply year-to-date. Meanwhile, Saudi Arabia’s cement and clinker exports returned to growth in September after posting several months of decline, weighing on prices in the Persian Gulf-Arabian Sea,” stressed Wanderson Teixeira, Junior Business Analyst at CW Group.
Turkish cement exports record double-digit increase year-to-date
Cement and clinker exports from Turkey between January and August increased by over 12 percent, according to the provisional data of the Exporters’ Association, while the total export volume decreased by around 3 percent to 21 million tons.
Cement exports from Algeria are expected to reach a record level this year, according to Ali Bey Nasri, the president of the National Association of Algerian Exporters, while production in the country is likely to reach 40 million tons.
Saudi Arabia’s cement exports continue to decline in August
Saudi Arabia’s cement companies witnessed a decline of around 17 percent in exports in August compared to the same month of 2020. Clinker exports amounted to 469,000 tons in August.
In Iran, the government said that it will support cement exports and production growth, prioritizing exports to neighboring countries.
Shipping market outlook
In terms of shipping at a global level, the Baltic Dry Index strengthened to 4,163 points on September 13, increasing by 1,024 points compared to 3,566 points on August 13, driven by the larger Capesize segment.
In the shipping market, the Canadian bulk carrier operator Fednav ordered at Japan’s Sumisho Marine and Oshima Shipbuilding ten new lake-fitted bulkers, expected to start being delivered in mid-2023.
Also in September, Golden Ocean Group placed an order to acquire three CSSC Shanhaiguan 85,000-deadweight-ton ships, for USD 34 million each, to be delivered between the third quarter of 2023 and the first quarter of 2024.
The Cement and Clinker Price Assessments for Med Basin and Persian Gulf are part of CW Research's price assessment series for tradable commodities. The report offers prompt cargo (next 30-60 days 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.
Find out more about the report here.