Clinker or bagged cement how to boost profitability?

The clinker trade turnover is comparatively questioning to the production levels across the globe, however, the clinker cement trade have a potential significance over the profitability of the enterprises involved as the clinker and cement traders but how? These question can be answered when you read on for, we have collected the expert’s opinions and extracted conclusions from the trading trends of clinker while brining to light the Chinese rapidly developing B2B import marketplaces in various regions of the world

The profit earnings ratios of the clinker manufacturer is reckoned to a broader spectrum by the consumption and capacity of its manufacturing set ups. While the profitability is earned by targeting the long distance market, that also ensures the potential reduction in the costs of production, well, the constant production in the global cement trade brings plays a major role in determining the profitability of clinker manufacturers

The global statistics for the trade of cement

From the recent studies it has been observed that the total of 50% clinker produced is traded domestically while the rest of the production is traded at international level with sea and land routes. The main route for clinker cement is the Asia pacific while China contributes to 16.8 Mt, comprising of more than 15% of the global trade

Vietnam was the second most producer of clinker, exporting more than 20% and the third most exports come from South Korea, Japan and Taiwan respectively. Among the recently emerging exporters of clinker are the Turkey and Iberian

The Chinese producers and their role in the cement and clinker market;

China is taking a toll across the globe for becoming the largest exporter of cement, nonetheless china is making certain strategies involving the closing of old and smaller capacities, that contributes to 20% of all capacities, while on the other hand 70% of the Chinese production of 32.5 grade cement might be held back because of the lower standards of quality. Standardizing the grade by 42.5% would lead to increased requirement of clinker levels per ton of clinker

At the peak of these efforts to lower capacity, china seem to pursue no cement plans to be traded by the sea routes and may switch to general exports of clinker, making exports costly, despite of the reduced export prices on board after the Asian region crises

The basic reason nevertheless that china will be refrained to export the maximum capacity is that it lacks the international trade network. Since the bulk clinker buyers have need to build specialist terminal and as well as the clinker producers need to have the grinding plant. Yet the overall trade of cement and clinker is at the mercy of these producers. Chinese companies lack the overseas import facilities sometime earlier but now they are making a huge progress with the online B2B marketplace that play a crucial role in connecting importers and trade companies with reliable suppliers from all across the world making trade easier. Since the bagged cement trade as an alternative may lead to higher expenses and may be at risk for the legal status

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