Global cement export prices strengthen in 1Q2021 as demand reawakens

CW export price index for gray cement is expected to continue to strengthen in the first quarter of 2021, increasing by over 5 percent year-on-year and almost 1 percent compared to the previous quarter, according to the 1Q2021 update of CW Research's Global Cement Trade Price Report.

According to CW price index, the global average gray cement export price in 1Q2021 is expected to continue rising Q-o-Q in comparison to 4Q2020. During the fourth quarter, gray cement prices decreased on a quarterly basis, but rose year-on-year.

ÔÇ£The cement market continues to see a strong growth across several countries on the back of infrastructure spending. However, in the largest exporting regions, Asia-Pacific-Japan and Mediterranean Basin, prices are expected to weaken impacted by a demand decline in most markets as they face a new Covid-19 wave,ÔÇØ observes Carolina Pereira, CW Group's Manager, Advisory & Research.

FOB cement prices to see decline in the world's top exporting region

Asia Pacific, which is expected to have exported the largest volume of gray cement at a regional level, is expected to see prices decline by less than 1 percent in 1Q2021 on a Q-o-Q basis as uncertainty related to the pandemic remains.

Compared to March 2021, FOB prices for gray cement in Asia-Pacific-Japan in June 2021 are expected to remain stable, with a negative outlook, pushed by a 3 percent decline in prices in the world's third largest exporter, Japan.

Turkey remains the top gray cement exporter in 4Q2020

In CW Research's set of 54 countries for the fourth quarter of 2020, Turkey was the biggest gray cement exporter globally, and it is estimated to have exported 9 percent less cement compared to the previous quarter.

The country's average export prices for gray cement increased in the 4Q2020 from the previous quarter and rose by around 5 percent year-on-year, on the back of robust demand, mainly from the United States and Israel.

Average clinker export price in 4Q2020 still settles below pre-Covid levels

Global trade in clinker is estimated to have increased by almost 7 percent quarter-on-quarter in the fourth quarter of 2020, but decreased by more than 23 percent year-on-year, as economies emerged from lockdowns.

In terms of pricing, in the fourth quarter of 2020, CW price index for clinker exports for the 25 countries included in the report is estimated to have increased by 2 percent on a quarter-on-quarter basis, which represents a decline of over 12 percent year-on-year. In 1Q2021, clinker trade prices are estimated to decrease more than 1 percent compared to the previous quarter.

The Global Cement Trade Price Report is CW Research's benchmark price assessment for monthly gray cement, white cement, clinker and granulated blast furnace slag prices and volumes. The 150+ page report, published on a quarterly basis, serves as the industry go-to source for monthly price data for over 70 individual markets worldwide, including multiple cornerstone data series: import, export, ex-works and market prices.

Find out more about the report here.