Cement and clinker FOB prices recover in Med Basin and Persian Gulf

FOB prices for cement and clinker have shown modest increases in April, according to CW Research's Cement and Clinker Price Assessments for Med Basin and Persian Gulf.

In the Mediterranean Basin region, FOB prices for prompt deliveries of both bulk ordinary Portland cement and clinker recorded very slight improvements when compared to the previous month. Whereas cement prices rose to almost USD 42 per ton, clinker rates topped USD 35 per ton.

Commenting on the price trend, Ana Almeida, Analyst with the CW Group's European team, observed: "Cement exporters in the North of Africa region generally seem to be succeeding with their plans of becoming self-sufficient and starting to export. Players in Algeria and Egypt have been seeing an increase in their shipments, and optimism remains."

Turkish cement exports rose almost seven percent in 2017 when compared to the previous year. The Syrian market was the largest importer of cement shipments originating from Turkey over the period.

In Egypt, cement prices are rising, reflecting a hike both in the country's demand and in transportation costs.

Large inventories pressuring cement demand in Saudi Arabia

In April, in the Persian Gulf and Arabian Sea region, FOB rates for bulk ordinary Portland cement expanded slightly month on month, surpassing USD 36 per ton. Prices for prompt deliveries of bulk ordinary grade clinker also registered a single-digit improvement, surpassing USD 27 per ton.

East African CFR prices for bagged cement remained stable when compared to the previous month.

As noted by Ana Almeida, Analyst with the CW Group's European team: "In the Eastern region of Africa, countries facing cement shortages represent a short-term opportunity for exporters. This situation comes in a time when countries of the coast side of the region are becoming more competitive in the cement market."

In Pakistan, exporters restarted to ship clinker in bulk, after a several-year hiatus, over which small quantities were exported.

Meanwhile, in Saudi Arabia cement demand registered an annual decline in February. The majority of cement manufacturers in the kingdom are registering a decrease in sales due a combination of weak demand and high inventory levels.

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