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INVENTORY JUMPS

Cement sales down 10pc in Saudi Arabia

RIYADH, October 2, 2016

Total cement sales in Saudi Arabia fell 10.3 per cent year on year in August, but grew 41 per cent from the previous month to 4.34 million tonnes, a report quoting Yamama Cement data said.

Total inventory reached a new high of 26.35 million tonnes, representing 45 per cent of the
last 12 months sales. Inventory grew 11.7 per cent year-on-year (y-o-y) and five per cent from the previous month, said the Al Rajhi Capital report.

Cement production in the kingdom came in at 4.3 million tonnes during August, down 10 per cent compared to the same time last year.

Among the companies under the report's coverage, Saudi and Yamama Cement’s market shares improved 0.4 per cent and 0.3 per cent compared to the same period last year to reach 13.1 per cent and 9.1 per cent respectively, the report said.

For the remaining months of 2016, cement demand is expected to remain modest and achieving a positive y-o-y growth could be a challenge for companies, the report said.

Key highlights of the report:

* In the first eight months of 2016, total cement dispatches slipped four per cent y-o-y to
38.7 million tonnes.

* Umm Al-Qura Cement (UACC) commenced commercial operations at its new Portland cement production line. The plant is located in Taif governorate and has an annual production capacity of 2.22 million tonnes of cement . This capacity addition is expected to raise the competition in the
Western region. - TradeArabia News Service




Tags: cement | Saudi Arabia | Sales |

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