Ex-works cement prices expand in Q1; FOB prices show mixed trends

Greenwich (CT), USA, July 28, 2017 – Cement ex-works prices rose in selected markets in 1Q2017, according to 2Q2017 Global Cement Trade Price Report (GCTPR) from CW Research. FOB prices for gray cement increased in March 2017 and are expected to continue improving broadly in the upcoming quarter, whereas those of white cement, clinker and slag will show mixed trends.

According to Tea Vukicevic, associate analyst with CW Research: “major standouts when it comes to domestic price increases include the Eastern European region, other Asian markets outside Southeast Asia, like China and India, and some African economies. The Russian recovery from the crisis has started to reflect on cement prices, which have been steadily growing. China, on the other hand, has been benefitting from a strong construction environment, which has allowed cement manufacturers to raise prices all across the country.”

Ex-works cement prices benefit from construction sector boost
Regionally, average selling prices (ASP) for cement showed an increase in Asia-Pacific and some markets in the Americas in 1Q2017. In the US, average cement prices advanced QoQ on an ex-works basis, reaching USD 106.7 per ton. Manufacturers have attributed this boost to a better momentum in the construction sector. Mexican factory prices in local currency also rose, which led to the strongest retail-level price increase in the region.

In Asia-Pacific, Chinese ex-works prices improved 13.1 percent quarter-on-quarter (QoQ) and 20.8 percent year-on-year (YoY) in the first quarter of the year, driven by a growing demand for cement. In the same period, Indian average selling prices for cement reached USD 61.4 per ton, a year-on-year increase of 2.9 percent. Looking forward, Indian cement manufacturers expect volatility in ex-works cement prices.

According to Filipe Gouveia, analyst with CW Research: “looking onwards, future ex-works rates in the U.S. are expected to trend upwards, buoyed by consumer spending and growing demand, while in Eastern Europe manufacturers are announcing price increases. These market dynamics are expected to support higher trade prices in the upcoming months.”

FOB cement trade prices solidify
In March 2017, CW Research’s proprietary global average gray cement FOB price increased by 2.8 percent to USD 55.1 per ton when compared to December 2016. Nonetheless, Turkish producers saw prices decrease 3.9 percent QoQ and 10.8 percent YoY. However, Turkey-based cement makers increased their export volumes by 43.1 percent on a quarterly basis. In the upcoming quarter, most regions are expected to record an improvement in FOB prices for gray cement. Middle East, North America and the Caribbean are projected to register the largest increases.

White cement FOB prices show mixed trends across different regions. In addition to playing a key role in gray cement trade, the Turkish market was also the worldwide leader of white cement exports in 1Q2017, accounting for 24.1 percent of the total trade. Looking forward, Middle East is forecast to register the largest increase in export prices, reaching about USD 113 per ton by September 2017.

In the first quarter, clinker trade volumes in the Asia-Pacific-Japan region accounted for almost 60 percent of the total clinker exports in our set of tracked countries. Average FOB prices in the Mediterranean Basin are forecast to decrease at the end of the next quarter, while average export prices in Asia-Pacific-Japan are projected to experience a moderate expansion in September 2017.

The outlook for slag remains volatile, notwithstanding seasonal peaks projected across different regions. In 1Q2017, total trade volumes for our set of tracked markets decreased 26.9 percent on a quarterly basis. In this period, the Japanese market led slag exports, accounting for 60 percent of the total. Japanese FOB prices for slag rose 2.5 percent on a quarterly basis.

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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 ld@cwgrp.com.

About the Report

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 150+ page report, published on a quarterly basis, serves as the industry go to source for monthly price data for about 60 individual markets worldwide, including multiple cornerstone data series: import, export, ex-works and market prices. Additionally, the GCTPR includes extensive discussion of key players’ price strategies as well as trade price forecast and select trade volumes for each country. The report also provides regional price indices as well as a quick review of trading dynamics and drivers in the different regions.

More information about the report can be found here: http://www.cwgrp.com/research/research-products/product/1-global-cement-trade-price-report

About CW Group
The Greenwich (Conn.), USA headquartered CW Group is a leading advisory, research and business intelligence boutique with a global presence and a multi-industry orientation. CW Group is particularly recognized for its sector expertise in heavy-side building materials (cement), light-side building materials, traditional and renewable power & energy, petrochemicals, metals & mining, industrial minerals, industrial manufacturing, bulk cargo & shipping, among others. We have a strong functional capability, grounded in our methodical and quantitative philosophy, including due diligence, sourcing intelligence, feasibility studies and commodity forecasting. www.cwgrp.com

PO Box 5263, Greenwich, CT 06831, USA
Liviu Dinu
Market Services & Marketing Consultant
M: +40-744-67-44-11
E: ld@cwgrp.com

This release was published on openPR.