Global FOB prices for gray cement are estimated to have declined to March 2016 by 0.3% as compared to December 2015, according to preliminary figures presented in the CW Research’s 1Q2016 update to its benchmark price assessment for worldwide trade of gray cement, white cement, clinker, and slag, as well as ex-works and effective market prices: Global Cement Trade Price Report (GCTPR).
CW Research expects FOB rates to recover marginally by June 2016, when the global average is projected to improve at a 0.1% rate from March levels. On the other hand, estimations indicate that slag export prices have fallen by 3.2% in March 2016 as opposed to December 2015, while the quarter to June 2016 is projected to bring about a further 1.8% decline.
Global consumption of the building material will decline by 1.9 percent in 2016, primarily driven by slowdown in China. “The decline in global sales, coupled with overcapacity in some exporting markets, will pressure exporters to find other markets, therefore affecting cement prices. The global economic growth scenario remains bleak due to China’s slower growth model, commodity price declines, and overhangs from past rapid credit growth. Advanced economies are pointing to a stronger outlook when compared to the recent past, while developing and emerging ones are under pressure”, says Robert Madeira, CW Group Managing Director and Head of Research.
“Several developments that marked 2015 will continue to leave their imprint in 2016, but by far the most pressing issues in 2016 will be sluggish capital flows to emerging and developing countries, anemic trade and continuously weakening commodity prices.” added Stefana Abiculesei.
Read more highlights from the 1Q2016 update to CW Research’s Global Cement Trade Price Report here.