FOB cement prices in the Persian Gulf-Arabian Sea regain momentum in August
After several months of declines, in August 2021, FOB prices of gray cement strengthened in the Persian Gulf-Arabian Sea increasing by almost 1 percent month-on-month, according to CW Research's Cement and Clinker Price Assessment for Med Basin and Persian Gulf-Arabian Sea & East Africa.
For clinker, the region's export prices increased by over 1 percent in August. At the same time, East African CFR prices for bagged cement decreased by almost 1 percent.
In the Mediterranean Basin region, gray cement FOB prices continued to increase in August, up by more than 1 percent month-on-month, while export prices for clinker rose almost 2 percent in the same month.
ÔÇ£Cement exports from Saudi Arabia posted a monthly growth in August from July's levels, which supported prices in addition to Iran's reduced production due to power shortages. Meanwhile, trade dynamics in the Mediterranean Basin continued to show positive figures during the month,ÔÇØ assessed Wanderson Teixeira, Junior Business Analyst at CW Group.
Saudi cement exports stumble in July
In July, cement exports from Saudi Arabia dropped sharply by almost 45 percent compared to the same month of 2020. Domestic sales also posted a decrease of almost 20 percent in the month.
In Iran, cement prices hiked fivefold at the end of July, after cement manufacturers experienced power cuts in the country. Iran's major cities faced power shortages as electricity production fell short of peak-season demand.
Turkey continues to post growth in cement exports
Turkey's cement sector continued to post healthy figures in the first five months of the year. During the same period, Turkish cement exports surged by almost 16 percent year-on-year, while domestic sales increased more than 30 percent.
Egypt's cement exports almost tripled in value, in the January to May period reaching more than 67 countries, with Libya accounting for the largest share of exports. Additionally, in Egypt, cement prices rose by about a third after the government approved production cuts to control the oversupply scenario in the domestic market.
Shipping market outlook
In terms of shipping at a global level, the Baltic Dry Index jumped to 3,566 points as of August 13, up 427points compared to 3,139 points on July 14, reaching its highest value in more than 11 years, boosted by strong demand across all vessel segments.
In the shipping market, Costamare reported that it has acquired 21 vessels with an average age of 10 years, taking its fleet to 37 vessels.
Chelleram Shipping sold its Darya Lakshmi to Costamare but reported to have added four ships to its fleet, including the 38,000-deadweight-ton Ultra Calbuco, a ship sold by Ultrabulk for almost USD 24 million.
The Cement and Clinker Price Assessments for Med Basin and Persian Gulf are part of CW Research's price assessment series for tradable commodities. The report offers prompt cargo (next 30-60 days deliveries) pricing insights, regular monitoring of the market and an overview of key developments that are crucial for those involved in the cement, clinker and petcoke trade to understand. The monthly price assessments synthesize key market information based on CW Research analysts' ongoing interactions with market participants, including traders, exporters, buyers and other stakeholders involved in the cement, clinker and petcoke trade.
Find out more about the report here.