Cement and clinker trade prices rise in August
By: CW Group
During the month, in the Mediterranean Basin region, trade prices for prompt deliveries of bulk ordinary Portland cement increased when compared to July, reaching between USD 39 and USD 41 per ton. Deliveries of bulk ordinary grade clinker mirrored the upward trend, edging up 0.6 percent as compared to the previous month.
"Consecutive devaluations of the local currency have rendered Turkish cement even more competitive in the international market, a contrast with the struggle faced by Spanish and Egyptian manufacturers, held back in their efforts to export by high energy costs," notes Carolina Pereira, Business Analyst at CW Group.
Faced with overcapacity in the cement market, the Egyptian government is looking for new ways to promote the sector.
Nader Saad, the spokesman for the Council of Minister, noted that a program to be established will support cement exports, encourage the conclusion of bilateral agreements with African countries to export cement, and issued guidance for banks to support existing companies.
Al Ain Cement and National Cement Factory sign clinker offtake agreement
In August, in the Persian Gulf and Arabian Sea region, trade prices for prompt deliveries of bulk ordinary grade clinker rose by over one percent compared to July. FOB prices for cement dispatches also recorded an increase, inching up to between USD 35 and USD 37 per ton over the same period.
"Still home to one of the most dynamic construction sectors in the globe, the Middle East is notwithstanding facing the effects of overcapacity in the cement industry. Consolidation of existing capacity and searching for new markets overseas are currently top priorities for local companies," adds Carolina Pereira, Business Analyst at CW Group.
In the UAE, two companies – Al Ain Cement, a subsidiary of Arkan Building Materials, and National Cement Factory, owned by Ittihad International Investments – have signed a new agreement regarding clinker offtake, which will enable them to decrease their production and logistics costs. According to National Cement Factory, this will reduce the risks associated with "securing its long-term clinker needs".
More information about the price assessments can be found here: https://www.cwgrp.com/
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