Turkey clinker offer prices stronger as supply remains tight from Egypt and Algeria

Clinker offers and bids from Turkey jumped again this week with offers heard at $50/mt FOB and counterbids at $48/mt FOB, multiple sources told Platts.

While some sources said they were maintaining their bids at $46-47/mt FOB in line with purchases made last week, a source with a large trader said they were willing to bid $48/mt FOB as supply remained tight everywhere in the Mediterranean region.

"The market is a bit stronger as buyers start planning for Q4, and the freight has increased globally, so we decided to counter at $48/mt FOB," the trader said. "Supply is tight everywhere in the Med region; there is no clinker available from Egypt; Algeria has minimal quantity, so Turkey is in a position of power to increase their prices."

The source added that higher freight is making it increasingly challenging to source clinker from further away. Although Saudi Arabia remained active with offers, quality remained a concern, the source added.

Meanwhile, demand from West Africa remained strong, but there was no urgency to buy, sources said.

"West African buyers are a bit cautious. Some areas, like the Ivory Coast have continuous flows coming in with the [Capesize vessels] arriving from Asia, so they are not in any desperation to buy, and buyers in other regions are very aware of the freight market and also the fact that clinker from Algeria is rare, so they are picking up whatever is being offered out of Turkey," a source said. "A lot of buyers are waiting for the freight market to cool down."

Besides West Africa, enquiries for clinker from Syria also saw similar offers out of Turkey.

"We don't have much availability, but I couldn't ignore the inquiry as $50/mt FOB is a very good price if my offer gets accepted," the producer source said.

Platts, part of S&P Global Energy, assessed Cement Clinker FOB Turkey at $47/mt on Aug. 28.