According to CW Research’s Cement and Clinker Price Assessments for Mediterranean Basin and Persian Gulf, FOB prices for both commodities recorded a slight expansion in March 2019.
During the month, in the Mediterranean Basin region, trade prices for prompt deliveries of bulk ordinary Portland cement remained flat compared to February, with cement dispatches standing between USD 39 and USD 41 per ton. Prompt deliveries of bulk ordinary grade clinker improved month on month.
“Cement exporters in the region have been able to sustain their export prices. The investments in infrastructure to support shipments of larger volumes of cement are appearing as a sign of a positive outlook”, assesses Carolina Pereira, CW Research’s Business Analyst.
In 2018, the Turkish sector was able to export more cement, with export volumes of the commodity rising year on year. Some of the largest importers of Turkish cement were the US and Israel. In terms of value, cement exports climbed as compared to the previous year to over USD 600 million.
Oversupply forcing exporters to rethink their strategy
In March, in the Persian Gulf and Arabian Sea region, trade prices for prompt deliveries of bulk ordinary grade clinker rose compared to February. FOB prices for cement dispatches also recorded an improvement, reaching between USD 34 and USD 36 per ton over the same period.
“Pakistan, one of the region’s key cement players, has refocused on exports once again. Overall, cement exporters in the Persian Gulf area are looking forward to increasing shipments of the commodity, as they invest in carefully rethinking their tactics”, notes Pereira.
In Saudi Arabia, cement companies are cautiously planning their exporting strategies. Since neighboring countries are oversupplied, Saudi producers are looking at East Asian markets to export their products, especially Bangladesh. Last year, cement exports increased in the kingdom, and are expected to improve further this year.
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 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 and clinker 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 and clinker trade. Find out more here