West African clinker demand and supply hot topic at Intercem Bangkok

Availability and sourcing of clinker amid daunting port congestions in Algeria and unprecedented demand from West Africa have emerged as the key topics of discussions during the Intercem Asia conference in Bangkok, ending May 8.

"Over 300 senior representatives from across the global cement industry — spanning 35 countries — joined Intercem Asia in Bangkok to network, strike new deals, and engage in valuable discussions on business development, market trends and international trade," Matthew Owen, Intercem's head of conference operations, told Platts over WhatsApp.

The situation with clinker in Vietnam and Algeria, and associated logistics issues surrounding exports to West Africa kept conversations flowing and meeting rooms busy.

Vietnam had loaded a Panamax ship to West Africa for the first time just before the conference started on May 6 so source discussions revolved around the port logistics of discharging the ship in West Africa. According to sources, while the loading in Vietnam had gone as planned, all eyes were on how the discharge would work in West Africa, considering port limitations.

"If the discharge process goes smoothly at the West African port, it would be a gamechanger as the freight would then work for shipments from Vietnam," a trader source said. "We are in a wait-and-see situation."

The other supplier in discussion was Algeria, where port congestion has been putting a spanner in the works for clinker supply in the region, resulting in the ongoing tightness.

Sources, however, said there were indications of the situation easing in Algeria with regard to the port and that it would be better in the third quarter.

However, immediate concerns were related to news that Algerian producers had indicated an increase in price for clinker offers to levels considered unviable for that market.

"Algeria is a mess, whether it is in terms of port logistics or in terms of this decision to increase prices."

While no confirmation was received around the level of the price increase, multiple sources said it would be in the region of $3-$5/mt increase, which would bring Algeria almost at par with competitors Egypt and Turkey.

"Issues in Algeria are causing an increase in prices in all regions including Southeast Asia," another trader said.

While traders scrambled to source cargoes to meet demand, mainly from West Africa grinding mills, producers saw the current market opportunity and the conference as a perfect platform for opportunistic sales.

"There has been an unavailability of clinker, which has made prices attractive for exports," a Turkey-based cement producer said. "So producers have been seeking ways to free up some volumes and present sporadic offers from time to time."

Platts, part of S&P Global Commodity Insights, last assessed CEMDEX Turkey at $55/mt May 8.