Supply chain disruptions and geopolitical events drive cementitious products pricing in 2Q22

• Gray cement exports are estimated to decrease by 3 percent quarter-on-quarter in 2Q2022
• Turkey remains the top exporter of gray cement, holding almost 25 percent of the global market share in 1Q22
• CW price index for gray cement in Eastern Europe and CIS to increase on the back of the Russia-Ukraine conflict and its reflection on production and transportation costs

Greenwich (CT), USA, July 19, 2022 – The CW price index for gray cement export is estimated to increase by 3 percent in 2Q2022 quarter-on-quarter, as the Russia-Ukraine conflict impacts shipping rates and energy prices, according to the 2Q2022 update of the CW Research's Global Cement Trade Price Report (GCTPR).

"Record oil prices increase are impacting markets, with the Russia-Ukraine conflict forcing shipping lines to alter shipping routes and even suspend their services, in many cases," explains Wanderson Teixeira, Business Analyst at CW Group.

The Russia-Ukraine conflict and China’s Zero-Covid policy are impacting global markets

With Russia and Ukraine being major commodity producers, the conflict has caused global prices to skyrocket, especially for oil, natural gas, and food grains. Western and Eastern Europe are bearing the brunt of the impact, whilst the Mediterranean Basin and Asia-Pacific continue to lead gray cement trading.

The resurgence of Covid-19 cases in China, which resulted in port congestion and in a surge in freight rates, is still causing damage in the region, with the Zero-Covid policy in China keeping economic activity down, therefore, affecting international trade.

Turkey, Japan, and Vietnam remain the largest gray cement exporters

In terms of gray cement exports, Turkey remained the largest gray cement exporter in 1Q22, accounting for almost 25 percent of the global market share during this period. The export volumes increased around 5 percent in comparison to 4Q21.

While Japan’s gray cement exports increased 5 percent in 1Q22, Vietnam’s exports declined by around 12 percent.

The Mediterranean Basin, the leading gray cement export region, witnessed a decrease of more than 3 percent in the first quarter of the year, compared to the previous quarter. Meanwhile, Western Europe registered a decrease of 8 percent in gray cement exports quarter-on-quarter, while gray cement exports from Eastern Europe declined 23 percent.

CW price index for gray cement exports to continue to increase in 2Q22

The CW price index for global gray cement exports is estimated to increase 3 percent when compared to 1Q22, after a larger increase of more than 5 percent quarter-on-quarter in the previous quarter. In Asia-Pacific-Japan, the CW price index is expected to increase by less than 1 percent when compared to the previous quarter, while an increase of more than 6 percent is estimated in the Mediterranean Basin during the quarter.

In Western Europe, the CW price index for gray cement exports is estimated to increase by around 1 percent when compared to 1Q22, whereas Eastern Europe is expected to register a rise of around 4 percent when compared to the same period.

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.

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