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Saudi cement sales fell by 3% in February 2014

Published by
World Cement,

Data from a recent report released by online financial information company Argaam Business Info (ABI) has revealed that cement manufacturers in Saudi Arabia witnessed a 3% y/y fall in sales in February 2014. Monthly sales stood at 4.59 million t, compared to 4.74 million t in the same month a year earlier.

Ten out of 14 cement firms operating in Saudi Arabia reported a fall in sales in February 2014. Sales of Jouf Cement Company (JCC) and Najran Cement Company (NCC) decreased by 26% and 24%, respectively. However, the report additionally noted that during the period under review sales of Arabian Cement Company (ACC) and Safwa Cement Company (SCC) grew by 41% and 6%, respectively. Total clinker production of the 14 manufacturers increased by 5% y/y to 4.07 million t during the month.

The slight fall in cement sales can be partly attributed to a slowdown in the Saudi construction sector, according to a report released by the National Commercial Bank (NCB). The structural change in the labour market, due to the expiration of the government amnesty and the beginning of correction campaigns against illegal migrant workers, has affected the demand for cement in the Kingdom and construction projects in both the public and private sectors have been delayed. Despite this, Saudi cement manufacturers are investing in increasing production capacity and the government has granted around SR3 billion for the construction of up to four new plants over the next few years.

Edited from various sources by Rosalie Starling

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