Qatar’s total cement production is expected to more than double to 6.52Mta this year but will still not be enough to satisfy the local demand, thus making imports imperative, according to Credit Suisse.
Although the supply-demand balance is expected to remain stable, Credit Suisse assumed a 5% drop in selling prices in 2009 and 2010.
“We expect the total capacity to increase to 6.52Mta by the end of 2009 with the start-up of Gulf Holding Company (GHC) and additional capacity by Qatar National Cement Company (QNCC),” said Credit Suisse in a report.
QNCC’s production capacity is expected to jump about 60% to 4.87Mta while GHC, which is slated to start production later this year, is estimated to add 1.65Mta.
According to the report, the total cement production capacity is expected to be stable at 6.5Mta in 2010 and 2011.
“The total installed capacity for 2009 (6.52Mta) is still not enough to satisfy local demand (we estimate 6.8Mta) and imports are still necessary,” the report said, adding QNCC is currently importing cement from India and Pakistan.