Cement Market Trading Prices In West Africa
We work on FOB and CFR cement prices from various ports and accept irrevocable L/C. Deliveries to port are made directly from a manufacturing plant within 2-3 days from the date of L/C. Cement comes in in 50 kg Kraft paper or polypolythen bags packed in 1.5MT to 2MT sling bags or big bags of 1 MT or 1.5 MT per bag.
Minimum volume per order is 1,000 MT with a maximum volume reaching 100,000 MT per month per client. Annual contracts are welcome.
We work with a number of reliable logistic companies that can promptly ship cement products from various ports to any country worldwide. Our mission is to form and open new distribution channels on an international level, and we look forward to building a mutually benefitial and productive relationship with an established trading company, importer-distributor or an end user.
How To Find The Best Cement Market Prices
The only reliable price is the FOB market price to the nearest port. This difference in price between manufacturing plants depends on where a plant is located in relation to a port of your product’s destination.
It is easy to get confused, when cement manufacturers quote prices that differ by 1-3 USD. The price usually depends on the final destination of the cement and the available volume. During construction period the price goes up as demand is higher then supply.
Profit margins of a cement manufacturer are quite small usually about 2-5 USD. Therefore, cement trading prices that vary by 3-5 USD must be seen as suspect by cement buyers and importers. In the end,It’s not the FOB price that is important, but reliability of your trading partner to deliver good quality cement on time.
Cement Shipment By Volume
- We are able to sell small-medium volumes by containers and medium-large volumes by vessel.
- Volume is based on a vessel’s capacity eg. 3000 MT, 5000 MT, 12500 MT, 25000 MT
- Generally it’s 50 kg kraft bags, however, the volume of the bag depends on the manufacturer.
- Cement is also sold in 1MT or 1.5MT jumbo bags (sling bags)
- Own brand cement – own brand packaging can be arranged. To be discussed.
Cement Price (FOB)
- Price is quoted on FOB basis only.
- This is because CFR price varies on daily basis and it’s not possible to give a fix price.
- When you get different CFR quotes, it’s important to understand that it’s the freight cost that varies and not the product price (FOB) which is fixed. Also different shipping companies have different freight rate.
Cement Price + Freight Cost (CFR)
- We can help you to arrange a good vessel from a reliable shipping company based on a FOB contract. We work with shipowners directly and not ship brokers.
- We use reliable shipping companies, however, you are free to use your own resources.
- If you find a better price and better deal, we can use your vessel instead.
- The cost of freight changes on daily basis, therefore, any rate quoted is just an estimate.
- The final freight rate is only known 2-3 days before the shipping date.
- The cost is paid directly to the shipping company.
Cement Price + Insurance + Freight Cost (CIF)
- We do not quote CIF cement prices at all.
- This is because the cost of insurance changes according to the price of the cargo and the age of the vessel and, therefore, is time consuming to produce a quote for every enquiry.
- Also there are too many insurance companies and their quotes do vary.
Cement Payment Terms
- Normally LC is acceptable for CFR sales.
- For FOB sales we work with 30% advance and 70% before shipment (either transfer or LC). The reason for advance payment is based on experience when a client opens the L/C, but does not send a vessel to pick up the goods and we end up with already bagged cement that have to be stored which is a big problem. 30% advance guarantees the pick up.
- For white labeling 50% advance and 50% before shipment since the bags have to be produced specifically for the client.
- L/C can be once transferable.
- L/C from any banks in Africa can be accepted only if they are confirmed by a bank in Turkey or Europe.