TOKYO: Fiscal 2015 export price negotiations between major Japanese cement producers and customers in Asia have concluded with prices remaining virtually unchanged from the high level of fiscal 2014 on the back of robust demand, according to a Nikkei report.
Annual contract prices are negotiated each spring by cement producers led by Ube-Mitsubishi Cement, Taiheiyo Cement and SumitomoOsaka Cement. This year’s round of negotiations has resulted in a contract price of US$40-45/t, an increase of US$1 on the top end from fiscal 2014. Prices have been trending upward since fiscal 2010.
The report notes that the high pricing levels are being maintained due to strong consumption in Asia, where investment in infrastructure such as roads and ports is rising. It cites growing demand in Hong Kong where subways and expressways are being built, as well as Singapore where expressway construction has also notably contributed to robust demand levels.
Japanese cement export volumes increased by 10 per cent in fiscal 2014 to 9.5Mt and are projected to reach 10Mt in fiscal 2015, according to the Japan Cement Association.
