A solid outlook for the bulk cement trade

The global cement industry is poised for growth, driven by increased infrastructure development worldwide.

In terms of production, the Middle East leads, with Iran, India, Turkey, and Saudi Arabia also experiencing significant growth. China, the largest producer, has seen its output decline due to a slumping real estate market.

Exports have shifted, with Turkey emerging as the largest seaborne exporter, surpassing both Vietnam and China. This comes after Turkey's exports declined in 2023 while the country focused on domestic supply. Whereas Vietnam's exports surged by 40%, despite a production decline. Japan and the EU, also significant exporters, have faced challenges such as rising fuel costs and decarbonization policies, which have affected their outputs. The US remains the world’s largest cement importer, benefiting from lower-cost imports due to the strength of the US Dollar and infrastructure spending.

Looking ahead, the demand for cement is expected to remain robust, particularly in the Asia-Pacific region, driven by ongoing infrastructure projects in India and the Middle East. At the same time, European producers are focusing on sustainability to stay competitive.

As global demand for cement rises, Supermax vessels (larger than Handymax but smaller than Panamax) are well-positioned to benefit. Geared vessels are essential for handling bulk cargo in ports that lack sophisticated loading or unloading equipment. They offer a balance between cargo capacity and operational flexibility, making them an attractive option for longer-distance shipments and large-volume trades.

The global trade of limestone, a key raw material for cement production, is set to rise due to growing cement demand. The Panamax segment plays a significant role in this sector.

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View the full article on cement trade from the Dry Bulk Weekly Newsletter reposted by Breakwave: https://www.breakwaveadvisors.com/insights/2024/11/18/cementing-the-future