Global export prices for gray cement have continued to decline into the second half of 2016, falling to well below the $60 per ton mark, according to the 3Q2016 update of CW Research’s Global Cement Trade Price Report (GCTPR). While export pricing continued to trend lower, quarter-on-quarter (QoQ) ex-works pricing, however, saw signs of recovery.
"Broadly speaking, in the second quarter of the year, we have seen domestic prices recover to some extent in most markets, but broadly speaking, pricing still remains under pressure in most markets amid weak demand. Nonetheless, China continues to show strength as ex-works cement prices increased more than 4% QoQ, though they remain well below $40 per ton," 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 further in most regions. Notably, Eastern Europe gray cement FOB prices are projected to by December 2016 to fall into the mid-$50 per ton range, 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 is projected to remain more stable.
As far as ex-works prices are concerned, CW Research expects pricing contractions is the main markets in Asia-Pacific-Japan, as well as a rather stable pricing environment in the Mediterranean Basin and Eastern Europe. A more positive development will be seen in average sale prices for cement produced in North America given the overall market dynamics.
Average selling prices decline, report coverage expanded Globally, ex-works prices (in dollar terms) declined in the second 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 improved on a QoQ basis, prices in markets such as Thailand and Indonesia continued to decrease on a quarterly basis.
"In India, higher costs for key inputs in cement production bumped up ex-works prices. Within the Asia-Pacific-Japan region, India was one of the leading markets in terms of price increase. Meanwhile, market slowdown and oversupply drove lower price realizations in Saudi Arabia. In the U.S., ex-works rates trended stronger YoY buoyed by consumer spending and growing demand," said Prashant Singh, Associate Director, CW Research.
The latest update of the report covers principal markets in the world, accounting for 80 percent of global demand. New for the latest update of the Global Cement Trade Price Report is a further expanded coverage of average selling prices for cement in key markets around the world. The GCTPR provides details on pricing, competitive information on cement producers’ 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 6.6 percent YoY in 2Q2016, according to the latest update of the Global Cement Trade Price Report (GCTPR). CW Research’s price indices represent over 70 percent of global trade in the three months to June 2016.
For the white cement segment, export prices dropped both QoQ and YoY to an average of $105.3 per ton in the second 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 North America and Western Europe.
During the quarter, global clinker export prices fell 13.5% YoY, Nonetheless, prices recovered to somewhat considering that the global average clinker FOB price rose QoQ for the first time in over a year.
For granulated blast furnace slag (GGBFS) exports, CW Research analysts show average prices for the second quarter of 2016 at the highest level seen in more than a year. The increase in price was mainly on account of stronger pricing in Asia-Pacific-Japan and strong increase in the Mediterranean Basin.
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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 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 players’ 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
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. To know more about CW Group, visit the company’s website: www.cwgrp.com
International cement trade activity plummets into 3Q2016; ex-works prices holding up
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