Higher production costs pressure FOB cement prices in March-April 2022

 
GREENWICH, Conn. - May 4, 2022 - PRLog -- Gray cement export prices both in the Persian Gulf-Arabian Sea and in the Mediterranean Basin increased in March-April 2022, driven by higher production costs amidst the Russia-Ukraine conflict, according to CW Research (https://www.cwgrp.com/research/)'s Cement and Clinker Price Assessments for Med Basin and the Persian Gulf & East Africa. (https://www.cwgrp.com/cemweek-marketdata/price-assessments).

Cement export prices both in the Persian Gulf-Arabian Sea and in the Mediterranean Basin posted a rise of about 7 and 13 percent month-on-month, respectively in March 2022, and further increased by around 9 percent in both regions in April. Meanwhile, East African CFR prices for bagged cement increased by almost 5 percent both in March and April, on a monthly basis.

"Energy prices and shipping rates which were already at elevated levels and had been impacting the entire cement industry supply-chain even prior to the Russia-Ukraine conflict have since only gained further steam, leaving cement exporters with a difficult choice of either increasing prices or seeing margin reductions," observes Wanderson Teixeira, Business Analyst at CW Group.

Cement exports from Egypt jump in January-February

Cement exports from Egypt in the first two months of the year reached USD 104 million, compared to USD 43 million in the same period last year. Meanwhile, in Spain cement exports decreased in February by almost 15 percent year-on-year and imports increased over 50 percent, due to clinker.

Lafarge Algeria reported that its cement and clinker exports to countries in West Africa and Latin America increased 87 percent in the first quarter of 2022 compared to the same period in 2021.

Saudi Arabia's cement exports on a downward trend in March

Saudi Arabia's cement exports decreased in March by 86 percent year-on-year, from 119,000 tons in March 2021 to 75,000 tons in March 2022. Meanwhile, clinker exports increased by about 2 percent month-on-month.

Exports from Pakistan also witnessed a significant decline, posting a fall of 64 percent in March 2022 compared to the same month of 2021.

Shipping market outlook

In terms of shipping at a global level, the Baltic Dry Index reached 2,068 points on April 14, down by 659 points compared to 2,727 points on March 14, rising boosted by gains across all segments.

In the shipping market, Diana Shipping announced mid-April that it has closed a new charter contract with C Transport Maritime for the 2012-built Newcastlemax Philadelphia, at a rate of USD 28,500 per day. In addition, the Greek Safe Bulkers announced that it also entered into an agreement to acquire a 2012-built, Chinese, dry-bulk, 181,000 dwt, Capesize vessel for USD 30 million.
End
Email:***@cwgrp.com
Posted By:***@cwgrp.com Email Verified
Tags:Cement
Industry:Industrial
Location:Greenwich - Connecticut - United States
Subject:Reports
Account Email Address Verified     Account Phone Number Verified     Disclaimer     Report Abuse
CW Group News
Trending
Most Viewed
Daily News



Like PRLog?
9K2K1K
Click to Share