Cement prices edge up in October; clinker shows regional variations

According to CW Research's Cement and Clinker Price Assessments for Mediterranean Basin and Persian Gulf, FOB prices rose modestly for cement deliveries, yet recorded mixed trends for clinker shipments in October.

As of mid-October, in the Mediterranean Basin, trade prices for prompt deliveries of bulk ordinary Portland cement rose by almost 2 percent when compared to the mid-September update. Conversely, FOB prices for deliveries of bulk ordinary grade clinker tumbled around 9 percent month-on-month.

ÔÇ£Egypt's cement sector will continue to face adversities in the last quarter of 2019, with the oversupply scenario likely to remain a feature for the foreseeable future, given the announcement of a new two-million-ton-per-annum cement plant. Additionally, the market has been negatively impacted by Libya's new import fees on Egyptian products,ÔÇØ notes Prashant Singh, CW Group's Associate Director.

Cement deliveries in Morocco increased modestly in the first nine months of the year, due in part to an increase in dispatches to the housing segment. The sector recorded a significant growth in shipments, registering a surge of over 30 percent year-on-year in the January-September period. Meanwhile, dispatches to the infrastructure segment witnessed a double-digit fall.

Cement sales in Saudi Arabia grow year-on-year

In mid-October, in the Persian Gulf and Arabian Sea region, export prices for Portland cement edged up almost 1 percent month-on-month, while prompt deliveries of bulk ordinary grade clinker grew more than 1 percent when compared to the previous month.

ÔÇ£Over the past few months, cement and clinker prices have strengthened regionally, based on strong infrastructure demand bucking the current global economic scenario,ÔÇØ observes Carolina Pereira, Business Analyst at CW Group.

Cement sales in Saudi Arabia increased year-on-year in September to 3.7 million tons. Southern Cement reported the highest sales volume during the month, at 0.5 million tons, a 3 percent increase when compared to September 2018. Meanwhile, Al-Jouf Cement reported the sharpest decline in sales during this period, with volumes sliding eight percent year-on-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 analystsÔÇÖ ongoing interactions with market participants, including traders, exporters, buyers and other stakeholders involved in the cement and clinker trade. Find out more here