World cement prices continue to slide in 1Q2019
By: CW Group
"The global economy continues to encounter significant challenges from trade tensions, to political uncertainty and volatile oil prices. This has had a carryover effect on domestic cement prices with some exceptions. Countries like India, where Pan India prices rose quarter on quarter, buoyed by strong sustained demand from the construction sector", assesses Prashant Singh, CW Group's Associate Director.
Domestic prices up in China and US
In China, the average ex-works price of cement reached USD 63 per ton, which represents a double-digit growth rate on a yearly basis. Strict environmental regulations have led to a significant reduction of cement capacity and to favorable pricing when compared to the same period in 2018.
In the US, cement ex-works prices expanded slightly year-on-year, mainly driven by construction and street-and-highway spending, which increased in the first months of 2019. In the Middle East, average cement selling prices edged down year-on-year, with Saudi Arabia contributing the most to the decline, as a result of the delays of several projects in the housing sector.
Argentinian ex-works prices slumped over 20 percent when compared to the previous year. A large decrease in construction activity, due to a lack of investment combined with currency depreciation, contributed for the price decline.
Gray cement trade prices to slip further
In the first quarter of 2019, gray cement average FOB prices are estimated to have touched USD 59 per ton for the set of 46 countries with estimated data for the period, edging down quarter on quarter.
In CW Research's set of countries with data for the quarter, Turkey strengthened its position as the largest exporter of gray cement on a global scale, having recorded a yearly surge of over 30 percent in shipped volumes.
With the exception of Asia-Pacific-
Japan tops slag exports
In the first quarter of 2019, global slag export volumes increased when compared to the previous quarter, with FOB prices soaring over 30 percent when compared to the first quarter of 2018. During 1Q2019, Japan continued to cement its leadership in terms of world slag exports.
Also in the first quarter of 2019, white cement export volumes are estimated to have decreased to one million tons for the set of reporting countries with complete data for the period. In terms of pricing, white cement average export prices remained flat compared to the same period the previous year, while increasing quarter on quarter.
World clinker trade volumes plummeted quarter on quarter in 1Q2019, yet surged year on year. Average FOB prices of the commodity are estimated to have edged up for the set of 24 countries. In 1Q2019, Asia-Pacific-
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About the Report
The Global Cement Trade Price Report (GCTPR) 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. Additionally, the GCTPR includes extensive discussion of key players' price strategies as well as trade price forecast and select trade volumes for each country. The report also provides regional price indices as well as a quick review of trading dynamics and drivers in the different regions. Additionally, the GCTPR includes monthly historical data series, preliminary estimates for the latest quarter, as well as a three-month forecast for all price types.
More information about the report 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
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