Med Basin and Persian Gulf cement trade prices decline; outlook remains positive

According to CW Research's Cement and Clinker Price Assessments for Med Basin and Persian Gulf, FOB prices for cement and clinker have faced slim decreases in June.

During the month, In the Mediterranean Basin region, FOB prices for prompt deliveries of bulk ordinary Portland cement and clinker contracted when compared to May.

As noted by Ana Almeida, Analyst with CW Research: "Cement and clinker traders in the Med Basin region are lowering prices as competition tightens and Ramadan season translates into a shrinking demand."

In Portugal, during the first quarter of 2018, domestic cement consumption declined to an estimated 710,000 tons. Construction projects in the market seem to be boosting consumption; however, the bad weather conditions observed in March offset the first two positive months for the sector. Nevertheless, macroeconomic indicators are pointing out to growth, combined with developments in the external environment.

Public works boosting demand in Pakistan

In June, FOB prices for bulk ordinary Portland cement declined month on month in the Persian Gulf and Arabian Sea region, whereas prices for prompt deliveries of bulk ordinary grade clinker also contracted.

Commenting on the price development, Ana Almeida observed: "In June, cement exporters in Persian Gulf-Arabian Sea are recording a contraction in prices. The seasonal dull activity from Ramadan is bringing prices down."

In Pakistan, cement demand saw an increase during the last fiscal year. From July 2017 to March 2018, it recorded a 14.7 percent increase when compared to 30.3 million tons in the same period a year ago. Domestically, demand growth has been supported by government policies, which initiated several mega infrastructure projects. In terms of export, figures started improving in February this year, with special emphasis to Afghanistan.

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