Clinker and cement prices soften in Turkey as supply shows mixed signs of improvement

Clinker and cement prices in Turkey are seeing some softening amid mixed signs of an improvement in spot availability, multiple sources told Platts, part of S&P Global Energy.

Platts assessed clinker FOB Turkey at $46/mt FOB and CEMDEX Turkey at $55/mt FOB on May 8.

"The market has cooled down a bit. Sales done at $46/mt FOB level in April were something unique and opportunistic as the buyer was desperate," a producer source said. "At present, clinker offers of $46-$47/mt are not seeing any positive reaction."

A clinker purchase was reported at $43/mt FOB for 40,000 mt from Turkey to Ghana, understood to have been concluded earlier this week, to load over early June. A cement purchase for 6,500 mt CEM I 42.5 R low chromium was reported at $50/mt FOB, concluded at the end of last month.

Clinker prices in Turkey and elsewhere have been rising since the beginning of the year, boosted by strong demand from West Africa.

On availability, some sources said they were seeing "more and more" spot shipments from Turkey. Other sources, however, continued to caution that availability was still tight, with most producers sold out.

"[We] have nothing more to sell anymore as we are sold out for the year," said a producer source who had actively placed cargoes during April.

However, another producer source reported the availability of 20,000 mt of clinker from the first week of June for contract shipments only.

The uncertainty around tariffs was also keeping the market on edge in Turkey, with producers trying to settle contracts for next year but buyers still in a wait-and-see mode.

"No one is coming forth for extra spot demand from the US," a second producer source said. "Prices [in Turkey] will only rise if extra demand comes from the US."

Besides the US, poor demand from Europe was also adding to the woes.

"There are emerging concerns that if the US economy contracts, we don't see extra demand and maybe in the next quarter, there will be some cancellations," the producer source added. "We have an alternative market in Europe, but I don't have big hopes of a boost in demand from there, so Europe is also a bit unclear."