Protecting Your Cement and Clinker Costs Against Price Surges
A strategic approach for CFOs and Procurement Leaders to manage Cement and Clinker price risk, without disrupting contracts or operations.
19 Jun 2025
If you're responsible for cement or clinker procurement, you're likely exposed to the one thing you can’t control: future market price.
Even with fixed contracts for a portion of supply, the rest often sits in the spot market, vulnerable to sudden surges.
You’re left managing cost exposure on a contract-by-contract basis, constantly negotiating volume splits, and sometimes worrying if your counterparty will hold the line when the market shifts sharply.
When pricing and operations are tightly coupled, it's hard to move quickly, or strategically.
Here’s an alternative approach.
We work with buyers to explore financial structures that sit alongside your physical supply operations. These aren’t contracts for delivery, and they don’t replace your current agreements, they’re separate, confidential tools to help manage exposure to price movements.
This means:
You keep buying from your existing supplier, on your terms
You don’t need to renegotiate the physical contract
But you can bring greater visibility and stability to pricing by setting an agreed level for part of your forecasted volume
Where your contract already references an index (like a regional market assessment), we help align the two. And where it doesn’t, which is common, we work with you to find a benchmark and adjustment that reflect your real exposure as closely as possible.
The financial agreement then compares the agreed level with the market reference at the end of each month, and the difference is settled separately, without touching your physical supply, through trusted and regulated parties.
It’s not about speculation. It’s about planning with confidence.
Month | Index Price $/MT | Agreed Price $/MT | Volume MT | Buyer Adjustment $ |
|---|---|---|---|---|
Feb 25 | 43 | 44 | 10,000 | -10,000 |
March 25 | 43.7 | 44 | 10,000 | -3,000 |
April 25 | 46.8 | 44 | 10,000 | +28,000 |
May 25 | 45.5 | 44 | 10,000 | +15,000 |
Finance wants control. Operations want continuity.
You don’t have to choose between them. By separating how you manage price from how you manage supply, you can stabilise your numbers, without slowing down the business.
This isn’t a product we sell. It’s a structure we help you explore, using the tools and methods already trusted and in other global commodity markets.
If you'd like to see how this could apply to your business, get in touch and we’ll walk you through it.