Cement and clinker trade prices rise in August

According to CW Research's Cement and Clinker Price Assessments for Mediterranean Basin and Persian Gulf, FOB prices for both cement and clinker increased across the two regions in August 2019.

During the month, in the Mediterranean Basin region, trade prices for prompt deliveries of bulk ordinary Portland cement increased when compared to July, reaching between USD 39 and USD 41 per ton. Deliveries of bulk ordinary grade clinker mirrored the upward trend, edging up 0.6 percent as compared to the previous month.

ÔÇ£Consecutive devaluations of the local currency have rendered Turkish cement even more competitive in the international market, a contrast with the struggle faced by Spanish and Egyptian manufacturers, held back in their efforts to export by high energy costs,ÔÇØ notes Carolina Pereira, Business Analyst at CW Group.

Faced with overcapacity in the cement market, the Egyptian government is looking for new ways to promote the sector. Prime Minister Mostafa Madbouli held a meeting to discuss the challenges the local cement industry is facing and to receive proposals regarding a strategy to support the industry.

Nader Saad, the spokesman for the Council of Minister, noted that the program to be established will support cement exports, encourage the conclusion of bilateral agreements with African countries to export cement, and issued guidance for banks to support existing companies and facilities.

Al Ain Cement and National Cement Factory sign clinker offtake agreement

In August, in the Persian Gulf and Arabian Sea region, trade prices for prompt deliveries of bulk ordinary grade clinker rose by over one percent compared to July. FOB prices for cement dispatches also recorded an increase, inching up to between USD 35 and USD 37 per ton over the same period.

ÔÇ£Still home to one of the most dynamic construction sectors in the globe, the Middle East is notwithstanding facing the effects of overcapacity in the cement industry. Consolidation of existing capacity and searching for new markets overseas are currently top priorities for local companies,ÔÇØ adds Carolina Pereira, Business Analyst at CW Group.

In the UAE, two companies ÔÇô Al Ain Cement, a subsidiary of Arkan Building Materials, and National Cement Factory, owned by Ittihad International Investments ÔÇô have signed a new agreement regarding clinker offtake, which will enable both companies to decrease their production and logistics costs. According to National Cement Factory, this will reduce the risks associated with ÔÇ£securing its long-term clinker needsÔÇØ.

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 analystsÔÇÖ ongoing interactions with market participants, including traders, exporters, buyers and other stakeholders involved in the cement and clinker trade. Find out more here