Prices for ordinary portland cement (OPC) in the Mediterranean dropped in 2Q17, according to CW Research, as low-price Turkish exports continued to push the market down. OPC Med Basin price index tracking FOB in the region slipped below US$40 per tonne.
“Pricing is being pressured by persistent oversupply of exporters and shrinking demand for imported cement in key traditional markets,” said Raluca Cercel, Senior Consulting Analysts at CW Research. “Traders see no relief in sight in terms of cement sales – particularly with the start of Ramadan, which will halt construction work in northern Africa.”
Clinker prices, as tracked by CW Research, FOB on a prompt cargo basis, were steadier at US$30 – 33 per tonne, with industry players expecting prices to strengthen slightly on demand from western Africa. Shipments to Ghana and Ivory Coast are expected to pick up in particularly, as cement grinding capacity increases but domestic clinker production remains negligible.
CW Research also said it was picking up some “opportunistic trades”. For example, traders reported a shipment of clinker from a southeastern Turkish exporter to a Spanish buyer at an FOB of US$29 – 31 per tonne.
Spanish clinker production outweighs domestic demand, indicating the shipment may have sought to take advantage of lower prices on the export market compared to Spain, where production costs are rising on the back of higher energy costs.
Read the article online at: https://www.worldcement.com/europe-cis/19062017/med-cement-prices-fall-on-high-supply/