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Persian Gulf cement and clinker prices slip in 2Q17

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World Cement,

Cement and clinker prices in the Persian Gulf-Arabian Sea fell in 2Q17, according to CW Research. CW Research’s Cement and Clinker Persian Gulf – Arabian Sea Price Assessment shows regional cement FOB prices at US$35.5 per tonne, a 39% fall on 2Q15. Clinker prices were also down at US$26 – 28 per tonne.

According to CW Research, the fall in prices comes on the back of weak demand through Ramadan, coupled with producers’ willingness to aggressively price cement to keep clinker lines operational. Ramadan’s impact is, however, not evenly felt among Gulf-based traders, hitting Iranian cement exports more than those from Pakistan or the UAE.

Iranian cement producers remain limited in the markets they are able to serve, as a result of international sanctions. As a result, they mostly ship to an “undiversified range of Muslim clients,” explained Raluca Cercel, Senior Consulting Analyst with CW Research.

In contrast, producers in the UAE and Pakistan see most of their export volumes head to East Africa and Indian clients, areas that are not as impacted by Ramadan. These producers have seen “little impact in terms of pricing,” continued Cercel.

“After the end of Ramadan, traders expect a US$1 – 2 recovery in cement and clinker FOB,” added Cercel.

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