Cement has always been a cyclical business. However, recently the natural cyclicality of the sector has been exacerbated by significant new capacity additions and the emergence of fresh players in many markets. This has created significant overcapacity in many regions/markets resulting in an urgent need of many industries to export.
CBA has helped cement businesses to develop and define a long term sustainable international trading strategy. To make an important distinction, CBA is not involved in opportunistic trading of cement or clinker. CBA works with cement producers and cement consumers to identify opportunities for long term trading relationships. In many instances, exporters have recognised that they need to consider their trading strategy beyond the opportunistic spot trading. CBA has assisted such clients to identify investment opportunities in downstream assets in destination markets.
This service is based on accurate and up to date data and insights on many destination markets and the understanding of the trading economics. Invariably, this service leads to exporters investing in assets in destination markets such as: Terminals, Grinding Plants, Concrete related business and others.