Shifts in cement trade help support the Supramax market
China’s property slump has turned Asia’s cement trade inside out. The cargo has not grown much, but it now travels much further, and Supramaxes are doing most of the extra work. From buyer to seller Not long ago, China was where Vietnam sent its clinker. In 2020 some 36 Mt went there, mostly on short ...
China's property market slump has caused a significant shift in Asia's cement trade. Instead of focusing on short hops from Vietnam to China, Chinese producers are now shipping cement further afield, primarily on Supramax ships. Vietnam, which lost its biggest customer overnight, has also begun exporting its clinker to distant markets like Bangladesh, the Philippines, and West Africa.
The US is another key destination, with Vietnam and Turkey taking a larger share of the market. This shift has increased the tonnage of cement shipped, with the average voyage taking about 88 days from Vietnam to the US Gulf and 75 days from China to West Africa. Europe's carbon border charge has also impacted the trade, pushing European producers to seek clinker from sources outside the EU.
China is building cement plants in Africa, the Middle East, and the Caribbean, which could eventually reduce the need for imported clinker. Overall, construction cargoes, led by cement and clinker, make up around 8% of Supramax demand and are a significant source of new work for the segment. However, the long-haul trend is expected to fade by 2027 as Chinese capacity increases and new plants are built in other regions.
Written by urgent.news from Hellenic Shipping News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
