Al Jouf raises Saudi Arabia selling prices

Al Jouf raises Saudi Arabia selling prices
Published: 20 February 2012

Tagged Under: Saudi Arabia Al Jouf Cement 

Saudi Arabian cement producer, Al Jouf Cement, says it has increased cement prices by 30 per cent to SAR260/t (US$69, however, a dispute with Saudi Aramco could mean prices will continue the upward trend.

Al Jouf Cement's move to raise prices comes on the back of the government's ban on exports announced last week. Saudi Arabia said it would halt exports of cement and clinker to prevent shortages and stabilize prices particularly in the western region around Jeddah and the holy cities of Mecca and Medina due to increased government spending.

Although domestic cement supply is expected to increase because of the export ban, the plan could be scuppered by moves by Saudi Aramco to limit fuel supplies to cement producers - a move that is expected to hurt production, The National reported.

"In the last two to three months, prices have gone up about 20 per cent year-on-year," said Farouk Miah, an analyst at NCB Capital. "Aramco is refusing to give extra fuel for cement plants, and the cement companies are concerned that a lot of supply is supposed to be coming up. If and when Aramco gives this fuel, it will ease the bottleneck."

Aramco has demanded cement makers use their current supplies more efficiently. The oil company can sell crude at a much higher price on the global market. Saudi Aramco was unavailable for comment yesterday.