Cement and clinker trade prices drop in Mediterranean Basin; rise in Persian Gulf

GREENWICH, Conn. - July 25, 2019 - PRLog -- According to CW Research's Cement and Clinker Price Assessments for Mediterranean Basin and Persian Gulf, FOB prices for both commodities recorded conflicting trends across regions in June 2019.

During the month, in the Mediterranean Basin region, trade prices for prompt deliveries of bulk ordinary Portland cement declined when compared to May, reaching between USD 38 and USD 40 per ton. Deliveries of bulk ordinary grade clinker also recorded a contraction month on month.

"Cement prices in the Mediterranean Basin have cooled down in the past months after crossing the USD 40 per ton threshold, as a very price-driven market reckons with the impact of late Easter and Ramadan", notes Carolina Pereira, Business Analyst at CW Group.

Consumption of cement in the Spanish autonomous region of Aragon surged by a double-digit growth rate from 2017 to 2018, reaching 282,854 tons. The main increases were seen in non-residential construction and civil works, each expanding by almost 30 percent, while demand for housing units also experienced a solid development.

Overall demand in Spain rose to 4.6 million tons, as both residential and nonresidential buildings recorded an impressive double-digit expansion.

Road restrictions and oil prices pressure trade in Pakistan

In June, in the Persian Gulf and Arabian Sea region, trade prices for prompt deliveries of bulk ordinary grade clinker improved compared to May. FOB prices for cement dispatches also recorded an increase, reaching between USD 35 and USD 37 per ton over the same period.

"Both clinker and cement FOB prices have remained volatile in the Persian Gulf over the past few months, reflecting uncertainty over the economic recovery of the Middle East and the region's geopolitical situation", observes Carolina Pereira, Business Analyst at CW Group.

Cement manufacturers in Pakistan have increased prices of 50-kilogram bags by around PKR 25, with dealers likely to follow. This increase is partially due to the Motorway Police imposing restrictions on cargo trucks commuting on the M9 Motorway, which connects Karachi and Hyderabad, as well as due to a surge in oil prices. Now, the weight that a cargo truck can carry was reduced to 17.5 tons from 40 tons in order to ensure the durability of the road.

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More information about the price assessments can be found here: https://www.cwgrp.com/research/research-products/category/13-price-assessment

For additional information, placing an order, or interview inquiries, please contact Mihnea Manea, Media and Market Services Executive, CW Group, by phone at +40 723 281 704, or e-mail at mm@cwgrp.com.


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