Taiwan Cement and Asia Cement to Raise export quotations

Taiwan Cement and Asia Cement to Raise export quotations
Published: 30 September 2008

Spot prices for cement has risen 15 per cent globally in the past few months in reaction to price hikes in coal, for example. To stay with the uptrend, leading cement producers in Taiwan, including Taiwan Cement Corporation and Asia Cement Corporation, will raise export quotations on products to be delivered in 2009.

Taiwan Cement vice president C.C. Huang predicted the export prices for Taiwan-made cement to be shipped to the USA, Africa and the Middle East in 2009 will rise 10 to 15 per cent YoY—reaching US$55/t.

An industry insider noted spot prices for coal have reached between US$160 and US$170/t globally after China recently levied export duty on the material. Coal accounted for only 33 per cent of cement producers’ overall production costs, but has risen to over 50 per cent in the wake the added export duty.

Taiwan Cement said demand for cement in emerging markets has been very strong over the past three years: For instance, cement is quoted at US$45 per metric ton in Africa, up over 60 per cent from US$27 three years ago.

Huang said his company is negotiating with buyers in the USA, Africa and the Middle East over export prices of cement to be shipped in 2009, predicting the contract export prices for such markets will be FOB US$55 per metric ton.

Asia Cement mainly exports to Singapore, Hong Kong, Hawaii, Eastern U.S. and Africa, and will raise export prices by 10 to 15 per cent in 2009 to reflect higher production costs.

Taiwan Cement predicted continual export growth to Africa and the Middle East due to strong demand in 2009, estimating the export of 2Mt and 1Mt of cement to Africa and the Middle East, respectively this year.