Downward trend continues to reign on average cement and clinker export prices in October

In October, FOB prices for cement and clinker both in the Persian Gulf-Arabian Sea region and in the Med Basin region declined, according to CW Research's Cement and Clinker Price Assessment for Med Basin and Persian Gulf.

FOB prices for bulk ordinary cement, both in the Med Basin and in the Persian Gulf-Arabian Sea, decreased by about 1 percent month-on-month, whereas FOB prices for clinker in the Med Basin recorded a decline of more than 1 percent, to reach over USD 25 per ton. In the Persian Gulf, FOB clinker prices also saw a decline, to reach USD 28.2 per ton.

"Prices have continued on a downward trajectory as consumption is still weak in countries including Spain, reflecting uncertainties caused by a second wave of Covid-19 infections that is hitting Europe. Economies are rebounding unevenly, as demonstrated by Turkey's export figures and Saudi Arabia's sales numbers", said Juliana Vieira, Business Analyst at CW Group.

Cement sales record robust growth in Saudi Arabia and Pakistan

Saudi Arabian cement sales grew by 23 percent in September year-on-year, to 4.6 million tons, from over 3.7 million tons sold in the same month of 2019. Fifteen companies witnessed an increase in their domestic sales in the month.

Meanwhile, Pakistan's cement sector reached a record high in dispatches, amounting to over 5 million tons, from 4.3 million tons in September 2019. Domestic sales strengthened by about 18 percent year-on-year to over 4 million tons, while exports surged by 41 percent year-on-year to more than 1 million tons.

Cement consumption keeps declining in Spain

Spanish cement consumption contracted by approximately 5 percent year-on-year in August, after a drop of more than 3 percent registered in July. Year-to-date consumption declined by over 13 percent, amounting to almost 9 million tons, compared to the same period in the previous year.

The Egyptian market has witnessed a decline in the value of cement exports by 21 percent during the first seven months of the year, to USD 77 million.

Meanwhile, Turkish exports are grew by 1 percent from January to July this year, amounting to over USD 2 billion, when compared to the same period last year.

Shipping market outlook

In terms of shipping at a global level, the Baltic Dry Index hit the year-high in the beginning of October, increasing 450 points to 1,732 points, on October 13, from the level of September 14, reflecting China's economic recovery and increased demand for iron ore and soybeans. The Capesize and Panamax markets also registered gains, whereas the Chinese holiday kept Ultramax and Supramax markets subdued.

In terms of vessel trade, Navios Maritime Partners announced the acquisition of two dry cargo vessels: Navios Gem, a 2014-built Capesize and Navios Victory, a 2014-built Panamax, for the total value of USD 51 million.

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.