International cement trade activity drops into 4Q2016; ex-works prices decreasing QoQ
Global export prices for gray cement recovered on a quarterly basis in the third quarter of 2016, being still below the $60 per ton mark, according to the 4Q2016 update of CW Research's Global Cement Trade Price Report (GCTPR). While export pricing for gray cement increased in the third quarter, quarter-on-quarter (QoQ) ex-works pricing, however, decreased in most of the markets. In China, ex-works cement prices decreased more than 9% QoQ and in Nigeria, ex-works pricing decreased by 25% in the same period.
ÔÇ£In the third quarter of the year, we have seen domestic prices decrease on a QoQ basis in most markets, as pricing still remains under pressure amid weak demand. Nonetheless, India continues to show strong pricing as ex-works cement prices increased by more than 3% QoQÔÇØ said Stefana Abiculesei, CW Research's lead analyst for the Global Cement Trade Price Report.
Looking ahead, CW Research expects pricing for internationally traded cement to contract in most regions. Notably, Mediterranean Basin gray cement FOB prices are projected to fall below the $50 per ton mark by March 2017, on average. Additionally, contractions are expected to be experienced in pricing for Western European exports as well, while pricing in North America and the Caribbean and Asia Pacific Japan are projected to remain more stable.
As far as ex-works prices are concerned, CW Research expects pricing improvements in the main markets in Asia-Pacific-Japan, as well as a rather positive pricing environment in North America. Stable pricing development will be seen in average sale prices for cement produced in Mediterranean Basin.
Average selling prices decline, future pricing mostly stable
Globally, ex-works prices (in dollar terms) continued to decline in the third quarter of 2016 on a year-on-year (YoY) basis across most of the world markets. Even though domestic prices in most of the countries declined on a QoQ basis, prices in markets such as India and Indonesia showed recovery on a quarterly basis. Indonesian average selling prices increased by 1% in the third quarter of 2016 and in India domestic prices grew to almost $67 per ton mark.
ÔÇ£Within the Asia-Pacific-Japan region, India was one of the leading markets in terms of price increases in the third quarter of 2016. Meanwhile, market slowdown and oversupply drove prices down in China. In the U.S., ex-works rates trended stronger QoQ, buoyed by consumer spending and growing demand,ÔÇØ said Prashant Singh, Associate Director, CW Research.
The latest update of the report covers principal markets in the world, accounting for around 80 percent of global demand. Since the last version, the Global Cement Trade Price Report includes expanded coverage of average selling prices for cement in key markets around the world. The GCTPR provides details on pricing, competitive information on cement producersÔÇÖ pricing strategies, review of pricing challenges, as well as indication of price drivers and outlook.
International cement and cementitious products trade prices decline
Global trade prices for gray cement fell 4.1 percent YoY in 3Q2016, according to the latest update of the Global Cement Trade Price Report (GCTPR). CW Research's price indices represent over 50 percent of global trade in the three months to September 2016.
For the white cement segment, export prices dropped both QoQ and YoY to a global average of $100.3 per ton in the third quarter of the year. On the other hand, volumes trended higher on account of strong volumes shipped from markets in the Mediterranean Basin, as well as Western Europe and North America.
During the quarter, global clinker export prices fell 13.2% YoY. Nonetheless, the global average clinker FOB price rose QoQ in the third quarter of 2016.
For granulated blast furnace slag (GGBFS) exports, CW Research analysts show average prices for the third quarter of 2016 at the highest level seen in a year. The price increase was mainly on account of strong growth in the Mediterranean Basin.
For more information, placing an order, or interview inquiries, please contact Liviu Dinu, Market Services & Marketing Consultant, CW Group, by phone at +40-744-67-44-11, or e-mail at [email protected].
The Global Cement Trade Price Report (GCTPR) is CW Research's benchmark price assessment for monthly gray cement, white cement, clinker and granulated blast furnace slag prices and volumes. The 200+ page report, with extensive coverage through tables and charts throughout, published on a quarterly basis, serves as the industry go-to source for monthly price data for about 70 individual markets worldwide, including multiple cornerstone data series: import, export, ex-works and market prices. Additionally, the GCTPR includes extensive discussion of key playersÔÇÖ pricing strategies as well as trading price forecast and select trade volumes for each country.
The Global Cement Trade Price Report also provides regional price indices and a review of notable trading dynamics and drivers in different regions. GCTPR is a must-have resource for all industry participants that need to know and track cementitious prices, including cement traders & exporters, accountants & controllers, producers, analysts and shippers. If you need to know pricing, CW Research's Global Cement Trade Price Report is the go-to resource.
More information about the report can be found at http://www.cwgrp.com/research/research-products/forecasts/product/1-global-cement-trade-price-report
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