Turkish cement producers monitor rising clinker prices in Egypt

Turkish cement and clinker producers are closely monitoring developments in the Egyptian market, where export prices saw a massive surge this week, multiple market participants told Platts, part of S&P Global Commodity Insights.

Multiple sources this week reported a sale from Egypt to Lebanon at $45/mt EXW, which translates to approximately $54/mt FOB. While the reports of the trade were shared by multiple sources, Platts could not confirm it with the buyer or seller at the time of writing

Following this, indicative values and offers from Egypt for spot cargoes were reported between $54/mt and $60/mt FOB.

Traditionally, the Egyptian cement and clinker market aligns with Turkish prices. However, these prices from Egypt are notably higher than the Platts FOB Turkey prices assessed on June 5 at $46.50/mt FOB.

According to sources, some plants in Egypt increased their clinker offers to over $50 per mt FOB, driven by a tight availability situation.

Initially, Turkish producers were skeptical about the credibility of these price levels from Egypt. However, as confirmations began to emerge, trader sources said it was just a matter of time before Turkey would up its offers too.

"If so [Egypt has increased prices], we would quote at those levels," one producer stated, adding, "but market conditions will decide."

Offers from Turkey previously quoted at $46/mt FOB on June 11 have since been retracted as producers strategize their next steps, trader sources said.

"I have been informed by [a Turkish producer] this morning that no cargo is available from now [onwards]," a trader source said. "Things are changing."

Sources widely in the Mediterranean region said this would impact trade in the area as Egypt will become non-competitive at this price.

"If Egypt keeps prices at $50/mt FOB, this will have an impact on all Mediterranean markets as it will mean Egypt will be basically out, which will increase FOB levels everywhere else," another Turkey producer source said. "I don't expect anyone to buy from Egypt at this price, as at that price anyone can buy from anywhere."

Meanwhile, Egyptian sources clarified that the price increases are a result of actions by a select group of plants and may not reflect the overall market conditions in the country.