Oman continues to feel a pinch of the crisis by registering a huge 13 per cent fall in cement prices in the nine months of 2011, compared to the previous year and declined 19 per cent since the year ended 2010, the largest decline among other Gulf Cooperation Council (GCC) peers, according to a report prepared by Global Investment House.
Omani companies are pressured by UAE cement companies which supply cement at a lower cost to the Sultanate, thus hurting margins of Omani companies and igniting price wars among them. Also, margins have diluted due to high cost of raw materials.
Among the Gulf Cooperation Council (GCC) states, the Sultanate marked the largest decline of cement prices by per cent at US$64.4/t in the first nine months of 2011, compared to US$74/t in the same period a year ago.
The study further pointed out that Oman Cement has increased its clinker capacity which will compete with Pioneer plant in the North and debt of the sector has increased because of recent fully debt funded acquisition.