In October, cement export prices in the Mediterranean Basin continued to rise supported by growing exports from major regional markets, namely Algeria, Turkey and Spain. Meanwhile in the Persian Gulf-Arabian Sea region, export prices once again declined after a short-lived increase the previous month, according to CW Research's Cement and Clinker Price Assessment for Med Basin and Persian Gulf-Arabian Sea & East Africa.
FOB cement prices were up by 1 percent in the Mediterranean Basin region, and clinker export prices increased by almost 2 percent month-on-month. In the Persian Gulf-Arabian Sea region, cement and clinker prices both declined by around 1 percent. In the same month, East African CFR prices for bagged cement increased by less than 1 percent in October month-on-month.
“The largest exporting markets in the Persian Gulf-Arabian Sea, Iran and Saudi Arabia, have seen cement exports fluctuating between August and October, which affected trade prices in the region. Meanwhile, key markets in the Mediterranean Basin including Turkey, Algeria, Egypt and Spain have all been registering double-digit growth in cement exports in the first nine months of the year,” explained Wanderson Teixeira, Junior Business Analyst at CW Group.
Spanish cement exports increase in the first eight months of 2021
Cement exports from Spanish manufacturers grew more than 25 percent year-on-year in the first eight months of the year. On a monthly basis in August exports fell almost 11 percent. Domestic consumption in the country increased in the 8-month period, up by 13 percent compared to the same period of 2020.
In Turkey, cement exports from January to September increased by almost 13 percent year-on-year in terms of value, while volumes decreased by less than 3 percent. Meanwhile, in Egypt, cement exports value almost tripled in the period from January to August, compared to the same period last year.
Cement exports from Saudi Arabia and Iran on the fall
Cement and clinker exports from Saudi Arabia increased more than 5 percent in September over the same month of the previous year, with nine companies exporting both commodities in the month. Focusing only on cement, exports decreased almost 55 percent year-on-year in the month.
In Iran, cement exports weakened by 8 percent in the first five months of the current Iranian year, between March and August, compared to the same period last year.
Shipping market outlook
In terms of shipping at a global level, the Baltic Dry Index surged to 5,206 points on October 13, up by 1,043 points compared to 4,163 points on September 13, due to firmer demand for coal imports amid an energy supply crunch both in Asia and Europe, along with high Capesize congestion in Chinese ports.
In the shipping market, the Norwegian shipping company Bellhops disclosed in October that has entered into agreements for the acquisition of two bulk carriers built in 2016 by a Japanese shipyard, with delivery in November.
In the same month, Safe Bulkers also sealed a time charter contract for its latest acquisition, a 2012-built Japanese Capesize bulker Stelios Y, with a time charter rate of USD 24,400 per day.
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.