Turkish cement exporters prioritize contract holders amid supply crunch

Turkish cement exporters will prioritize existing contract holders as buyers seek additional volumes following operational disruptions to Saudi Arabian, Vietnamese and Far Eastern supplies amid the war in the Middle East, Ender Sahin, president of Turkish Cement and export director at Medcem Global, told Platts, part of S&P Global Energy, April 16.

Supply constraints in Saudi Arabia and operational issues in the Far East have created significant procurement challenges for cement buyers in major markets, including the US, leading to increased demand for Turkish cement.

"Our buyers are asking for additional quantities and need support," Sahin said. "We have decided to give priority to our contracted clients, which they deserve, because they trust us," Sahin said.

Turkish Cement has opted to allocate available volumes to long-term contract holders before pursuing spot sales. Most producers avoided signing new deals and focused on monitoring market developments during the Intercem Conference in Jakarta, April 14-16. The cautious approach comes as exporters assess the duration and scale of the Saudi supply disruptions.

"We don't have a lot of additional capacity as Turkish Cement, but we are pushing our limits. We are waiting for a clearer picture before closing any further deals," Sahin added.

Platts assessed cement clinker FOB Turkey at $46.50/mt on April 9.