According to CW Research's Cement and Clinker Price Assessment for Med Basin and Persian Gulf, FOB prices for cement and clinker dropped in June in both regions.
In June 2020, FOB prices for prompt deliveries of both ordinary Portland cement and clinker in the Mediterranean Basin region registered declines of around two percent when compared to the previous month.
According to CW Group's Manager, Advisory & Research, Carolina Pereira “Prices are on a downward trajectory due to the continuining economic carnage as a result of the pandemic and made even worse by reduced oil prices affecting resource allocations for construction activities, and consequently cement demand.”
Mediterranean Basin to witness a downward trend on FOB cement prices
Cement exports from Turkey to Iran declined in April compared to the previous month. Turkish exports registered a strong contraction on a year-on-year basis.
Meanwhile, in Portugal, cement sales strengthened in March, compared to the same period in the previous year, reports the Ministry of Finance. The growth was supported by a strong dynamic in the housing sector, both in terms of new and rehabilitation works.
Saudi Arabian cement sales weaken in May
In June 2020, the Persian Gulf and Arabian Sea region followed a similar trend as of the Mediterranean Basin region in regards to cement and clinker trade prices with an overall small price decrease. The average future tanker oil prices for this region decreased by 29.3 percent for Fujairah, Damman and Jeddah ports.
In Saudi Arabia, cement sales registered a year-on-year decline to reach 2.1 million tons in May, due to the combined effects of the pandemic and also Ramadan. In addition, Pakistan's cement exports were negatively impacted by the pandemic, witnessing a decline of almost 40 percent year-on-year, as major markets all saw their economies contract.
In terms of shipping at a global level, the Baltic Dry Index increased 41.2 percent in mid-June, compared to the end of May. Future prospects for the shipping industry remain optimistic as demand is expected to pick up with global demand slowly picking up, while supplies are forecasted to remain constrained.
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.