FOB prices in the Mediterranean Basin region for gray cement continued their upward trend as key markets in the region reported rising export statistics, according to CW Research's Cement and Clinker Price Assessment for Med Basin and Persian Gulf-Arabian Sea & East Africa.
Export prices in the region were up by almost 2 percent month-on-month, while clinker export prices rose over 2 percent in the month of July.
Meanwhile, in the Persian Gulf-Arabian Sea region, FOB prices for ordinary Portland cement deliveries decreased about 2 percent in July, and clinker prices reduced about 1 percent. East African CFR prices for bagged cement decreased by less than 1 percent in the month.
“While most of Saudi Arabia’s cement production is being absorbed by the increased demand in the domestic market, in Iran, cement manufacturers have experienced power cuts and declines in production, which have contributed to a slump in cement exports. Meanwhile, in the Mediterranean Basin, key exporters including Spain, Algeria, and Turkey continued to post robust growth in cement exports,” stated Wanderson Teixeira, Junior Business Analyst at CW Group.
Spain’s cement exports increased in the first half of 2021
In Spain, cement exports increased by almost 36 percent in the first half of 2021, compared to the same period last year. In June alone, exports increased over 24 percent year-on-year.
The same trend was observed in Algeria, where cement exports posted a robust rise to USD 75.7 million compared to less than USD 24 million reached in the same period of 2020.
Saudi Arabian cement exports decline in the first half of 2021
Cement exports from Saudi Arabia decreased more than 22 percent year-on-year in the first half of 2021, despite a strong rise of over 41 percent year-on-year in June.
Meanwhile, in Iran authorities ordered cement and steel producers in the first week of July to stop production for up to three weeks due to insufficient electricity supplies. In Kuwait, the Ministry of Commerce imposed a ban on the export and re-export of cement to maintain price stability in the country.
Shipping market outlook
In terms of shipping at a global level, the Baltic Dry Index strengthened to reach 3,139 points on July 14, up 195 points when compared to June 14, boosted by rising rates in the Capesize market.
Within the shipping universe, Seanergy acquired a new 2009-built Capesize from Japanese owners for more than USD 24 million. The company also agreed to sell the 2001-built Leadership for USD 12 million.
Another Greek owner, Safe Bulkers, acquired in July a Japanese-built Kamsarmax class 82,000-deadweight-ton vessel to be delivered by late 2023.
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.