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Follow on Google News | Persian Gulf cement and clinker prices slip in Q2By: CW Group Similarly, CW Research's regional clinker price index fluctuated between USD 26-28 per ton since the beginning of Q2 2017. The move represented a 31% decline when compared to Q2 2015. Both indices track prices, based on CW Research's on-going conversations with market participants, measuring actual FOB prices during the month for prompt delivery cargoes by using a proprietary methodology. "The Ramadan affects Persian Gulf-based traders differently. Iranian traders consulted by CW Research expect a negative impact in terms of pricing, given that they mostly ship to an undiversified range of Muslim clients. Pakistani and UAE participants mention little impact in terms of pricing, as most of their volumes go to East Africa and Indian clients. After the end of the Ramadan, traders expect a USD1-2/t recovery in cement and clinker FOB," explained Raluca Cercel, Senior Consulting Analyst with CW Research. Prices move lower on Iranian volumes Ordinary Portland cement and ordinary clinker price indices slipped, following a less expensive FOB of Iranian exporters for both products. Since Iran-based producers export larger volumes than their regional counterparts, Iranian FOB becomes more predominant in our index on a weighted average basis. Iranian traders do not expect any resolution on the international sanctions that prevent traders from using Letters of Credit (LOCs). Therefore, reaching markets where trading cement is not possible without LOCs is not a feasible option in the foreseeable future. Given that production costs for Iranian cement producers are low, many move cementitious products only for the sake of keeping production going, hence impacting pricing in the process. Pakistani traders, confined in the past to exporting bagged cargos due to the lack of effective dry bulk cargo terminal capacity, will benefit from the new terminal opened in the Muhammad Bin Qasim Port. The infrastructure will allow producers to cater to markets seeking to absorb larger volumes of cement delivered in bulk. Meanwhile, domestic cement demand remains healthy in Pakistan, thus translating in a high cement FOB, around USD 30 per ton. The need to move cargos to maintain utilization rates is, thus, not as pressing as in Iran. **** For more information, placing an order, or interview inquiries, please contact Liviu Dinu, Market Services & Marketing Consultant, CW Group, by phone at +40-744-67-44- About the Report The Cement and Clinker Persian Gulf- Arabian Sea Price Assessment is 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, 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. More information about the price assessments can be found here: http://www.cwgrp.com/ About CW Group The Greenwich (Conn.), USA headquartered CW Group is a leading advisory, research and business intelligence boutique with a global presence and a multi-industry orientation. CW Group is particularly recognized for its sector expertise in heavy-side building materials (cement), light-side building materials, traditional and renewable power & energy, petrochemicals, metals & mining, industrial minerals, industrial manufacturing, bulk cargo & shipping, among others. We have a strong functional capability, grounded in our methodical and quantitative philosophy, including due diligence, sourcing intelligence, feasibility studies and commodity forecasting. www.cwgrp.com End
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