Raysut Cement Company (RCC), the Sultanate’s biggest cement producer, has reduced its cement selling prices, mainly due to severe competition from neighbouring UAE-based companies. The price reduction will vary according to the quantity of cement purchased by a customer.
RCC’s announcement follows a similar move this month by its domestic competitor, Oman Cement, and in response to intensifying competition from UAE-based producers.
“In the domestic market, the company lost some of its market share as cement sales plummeted by 43 per cent year on year and 4.1 per cent on quarter on quarter basis. The market share loss occurred despite the company selling cement at a discount in the first half,” a research note from EFG Hermes said in a statement.
The price reduction, EFG said, will have an impact on second half revenue and earnings.