Average export prices for cement and clinker continued their upward trajectory in the Mediterranean Basin while declining in the Persian Gulf-Arabian Sea and East Africa in January 2021, according to CW Research's Cement and Clinker Price Assessment for Med Basin and Persian Gulf-Arabian Sea & East Africa.
FOB prices for both Portland cement and clinker in the Mediterranean Basin saw a monthly increase of almost 1 percent while in the Persian Gulf-Arabian Sea and in East Africa FOB prices for both Portland cement and clinker declined by an estimated 1 percent month-on-month.
“Cement prices in the Mediterranean Basin continued to reflect the robust performance of Turkish and Algerian cement exports. In the Persian Gulf, prices have cooled down in the past months, stabilizing around USD 35 per ton despite the sales rebound in Saudi Arabia and production growth in Iran and Qatar,” observes Juliana Vieira, Business Analyst at CW Group.
Iranian cement production increases between March and December 2020
Iranian cement output saw a 15 percent growth year-on-year in the first nine months of the current Iranian year (March 21 to December 20), to almost 54 million tons, according to Iran’s Industry, Mining, and Trade Ministry.
Qatar’s Industrial Production Index (IPI) for October 2020 increased 3 percent compared to September, with cement production showing the second largest increase in the manufacturing category, growing by almost 10 percent.
Meanwhile, in Saudi Arabia, domestic cement sales rose by almost 21 percent and exports increased by about 10 percent in 2020.
Turkish exports reach nearly USD 1 billion in 2020
Turkish cement exports totaled 30 million tons in 2020, worth nearly USD 1 billion. With good prospects, Turkey’s Bursa Çimento announced that will launch a new fully integrated clinker line set to start by the end of 2022.
On the other hand, in Spain, cement demand declined by 1.5 million tons in the first eleven months of 2020 compared to the same period last year.
Shipping market outlook
In terms of shipping at a global level, the Baltic Dry Index reached 1,856 points on January 13, the highest in over three months, up 645 points from December 11. The Capesize and the Panamax markets saw strong demand in the beginning of January, with rising demand from Atlantic routes, while the Handysize market recorded a slow start to the year.
In terms of vessel trade, the Bangladeshi industrial conglomerate, Meghna Group, placed an order at Yangzi-Mitsui Shipbuilding for the construction of four 66,000 dwt Ultramax bulkers.
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.