According to CW Research’s Cement and Clinker Price Assessments for Mediterranean Basin and Persian Gulf, FOB prices for cement dispatches continued to increase, while clinker deliveries in mid-November recorded mixed trends.
Over the period, in the Mediterranean Basin, trade prices for prompt deliveries of bulk ordinary Portland cement rose by close to 4 percent when compared to the mid-October update. In contrast, FOB prices for deliveries of bulk ordinary grade clinker plummeted 5 percent month-on-month.
“In Algeria, the government is aiming to tackle its increasingly problematic cement oversupply by promoting the use of cement in national road projects, with about four million tons to be used for these plans,” assesses Prashant Singh, CW Group’s Associate Director.
Meanwhile, in Turkey, cement producers are expecting their export revenues to double to over USD 1 billion this year. In the first eight months of the year, volumes have risen 70 percent year-on-year.
Pakistan hit by economic downturn
In mid-November, in the Persian Gulf and Arabian Sea region, export prices for Portland cement continued to inch up almost 1 percent month-on-month. FOB prices for prompt deliveries of bulk ordinary grade clinker displayed a solid 7-percent increase when compared to October.
“The Pakistani cement market has been severely hit by the economic downturn. Government measures to stimulate the economy have been unsuccessful in stimulating demand – in fact, government measures resulted in the increase in energy and transportation costs – thus negatively impacting the cement sector’s profitability,” observes Carolina Pereira, Business Analyst at CW Group.
In Qatar, Eastern Province Cement’s profit jumped 300 percent in the third quarter, and surged 159 percent in the first nine months of the year due to higher cement sales, a recovery in domestic market demand, and lower selling and marketing expenses. Um Al-Qura Cement was also able to recover from a net loss in the third quarter of 2018 to a profit in the equivalent period of 2019, as the amount and value of sales improved, as did average cement selling prices.
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 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 and clinker 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 and clinker trade. Find out more here