Asian cement exporters target West Africa amid Mediterranean supply woes

Asian cement exporters, primarily from Vietnam and China, have been increasing their shipments to West Africa since the start of 2025, capitalizing on supply shortages from traditional suppliers Egypt, Algeria, and Turkey.

These shortages have opened up new opportunities for Asian suppliers, particularly following Egypt's decision to end its freight subsidy on exports earlier this year.

"Africa has not been our main market, but since the beginning of the year, after Egypt ended the freight subsidy on exports to West Africa, we have shipped a lot to West Africa," a trader source supplying from China and Vietnam told Platts, part of S&P Global Energy.

Since January, around 20 shipments of mostly Panamax and Capesize have arrived in West Africa from Vietnam and China, compared with just one in the same period last year, signaling a potential shift in the supply chain, as West African buyers look to alternative sources to meet their demand, S&P Global Commodities at Sea data showed.

Besides Vietnam and China, other exporters in the region are also eyeing the opportunity.

Indonesian exporters view this as a chance to broaden their export markets to include West Africa.

"Domestic demand for cement and clinker in Indonesia is expected to slow in the coming years, so the growing demand from West Africa is a welcome opportunity," an Indonesia-based exporter said. They added that more research would be conducted to assess the feasibility of boosting production to meet potential export demand. Additionally, Indonesia plans to upgrade port facilities to accommodate larger vessels like Supramaxes and Panamaxes, which would help reduce freight costs and improve competitiveness in the future.

Sources expect the uncertainty in the Mediterranean region to continue into next year, lending further leverage to Asian players.

"On the supply side, I don't think Egypt, Algeria or Turkey will have good volume to export next year either, so the situation will be similar to this year," the trader source said. "Right now, the freight market is already high, and even then, West African buyers are still buying from China. If the freight drops, Asia's advantage will increase."

In addition to the increased shipments, several Chinese companies have already made investments in West Africa, which is seen as a positive sign for future exports.

Platts assessed cement (ASTM type I) FOB Vietnam at $36/mt on Sept. 18, down from $36.25/mt FOB the previous week.

Platts assessed cement clinker FOB Vietnam at $31.25/mt on Sept. 18. down from $31.50/mt FOB the previous week.