Persian Gulf cement export prices increase in December

• FOB cement prices in the Persian Gulf-Arabian Sea increase more than 1 percent in December
• FOB prices for cement in the Mediterranean Basin region also increased by over 1 percent in the month
• Saudi Arabia's cement exports plunge in November
• Turkey's cement exports increase in January-September 2021

Greenwich (CT), USA, February 8, 2022 ÔÇô In December 2021, FOB prices for ordinary Portland cement in the Persian Gulf-Arabian Sea increased more than 1 percent, while clinker export prices increased almost 2 percent, on a month-on-month basis, according to CW Research's Cement and Clinker Price Assessment for Med Basin and Persian Gulf-Arabian Sea & East Africa.

In the same month, East African CFR prices for bagged cement increased by less than 1 percent month-on-month.

Meanwhile, FOB prices for cement in the Mediterranean Basin region increased by over 1 percent, while clinker export prices rose by more than 2 percent in December, compared to November.

ÔÇ£Cement exports from Saudi Arabia, a key market in the Persian Gulf region, grew month-on-month in December after several consecutive months of decline pushing prices up. Meanwhile, in the Mediterranean Basin, prices have been on an upward trend most of 2021, with Turkey, Algeria, Egypt, and Spain registering robust cement exports throughout the year,ÔÇØ observes Vasco Teixeira, Business Analyst at CW Group.

Saudi Arabia's exports plunge in November

Domestic cement sales in Saudi Arabia in November declined by 3 percent year-on-year, while exports plunged almost 50 percent in the month. Five companies were responsible for Saudi Arabia's cement exports in November, with Saudi Cement leading sales abroad.

In Iran, cement production during the past Iranian calendar year reached almost 70 million tons, with exports estimated at more than 11 million tons.

Turkey's cement exports increase in January-September 2021

Turkish cement exports increased by 3 percent from January to September 2021 compared to the same period last year, according to the Turkish association of the cement industry, Türkçimento.

In Algeria, Sauro-Cement, a subsidiary of the Cement Industry Group of Algeria (GICA), announced its plans to increase cement exports to West African countries in 2022, including different types of cement produced by the Ben-Zireg cement plant to countries within the region, especially Senegal.

Shipping market outlook

In terms of shipping at a global level, the Baltic Dry Index achieved 3,216 points on December 14, increasing by 854 points compared to 2,844 points on November 11. However, it was the lowest since December 3, on weaker rates across Capesize, Panamax, and Supramax segments.

In the shipping market, at the beginning of December, H-Line paid Keiyo Kisen USD 22 million for the 2007-built Cape Treasure. Meanwhile, Greek owner NGM Energy, in December, was linked to its ninth bulker buy this year in the second-hand market, the 94,000 dwt Mayfair Spirit, priced at USD 19 million and sold by Taconic Capital.

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.

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