FOB cement prices decrease in the Mediterranean Basin in August

• Cement export prices for bulk ordinary Portland cement decreased in the Mediterranean Basin and increased in the Persian Gulf-Arabian Sea region
• East African CFR prices for bagged cement decreased
• France sees cement deliveries drop in July
• Cement exports continued to decline in Pakistan in July

Greenwich (CT), USA, August 30, 2022 – Cement export prices for bulk ordinary Portland cement in the Mediterranean Basin decreased by less than 0.5 percent month-on-month in August 2022, as cement sales saw a general decline, according to CW Research's Cement and Clinker Price Assessments for Med Basin and the Persian Gulf & East Africa..

In the Persian Gulf-Arabian Sea, FOB prices for bulk Portland cement and clinker saw a marginal increase in the same period. East African CFR prices for bagged cement decreased by less than 1 percent in the month.

"Cement sales maintain their downward trend, as the global market continues to be impacted by the ongoing Russia-Ukraine conflict. The high cost of transportation remains a key cause for concern in the cement industry,” explained Wanderson Teixeira, Business Analyst at CW Group.

Çimsa announces the transfer of factories to Fernas Group

Çimsa Cement, based in Turkey, announced the transfer of its Kayseri and Niğde Plants and Ankara Grinding Facility to Fernas Group. The company is now expected to be able to finance its sustainability investments and reduce debt. To accomplish this, the first step will be to commission its investment to increase the company's CAC capacity in Mersin.

Cement deliveries drop in France

In Pakistan, Lucky Cement announced the expansion of the Pezu plant in the Khyber Pakhtunkhwa province. The brownfield expansion is expected to start operations by the end of the year

Lucky Cement expands plant in Pakistan

Cement deliveries in France dropped almost 30 percent in July 2022 compared to the same month in 2021. In the first seven months of the year, cement deliveries decreased by over 7 percent year-on-year. Meanwhile, in Morocco, cement sales declined by almost 30 percent in the same period. In addition, deliveries in the distribution segment decreased by around a quarter.

Shipping market outlook

The Baltic Dry Index reached 1,477 points on August 12, down by 513 points compared to July 12, as Capesize market rates slipped away in the first week of the month. China’s imports of iron ore rose over 3 percent year-on-year in July. However, the creation of a new state-owned iron ore giant solidifies the country´s strategy of moving away from dependence on foreign iron ore. Navios Maritime Partners announced the acquisition of a 36-vessel dry bulk fleet for over USD 800 million.

The Cement and Clinker Price Assessments for Med Basin and the 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, 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.

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