Cement consumption in Qatar will grow at a compound annual growth rate (CAGR) of 12% up to 2015, according to a report by Commercialbank Capital.
Qatar’s current production capacity stands at 6.2Mta, Commercialbank Capital said in its first report on Qatar’s construction sector. The existing demand can be met by the current production.
However, Commercialbank Capital expects consumption will be “at the peak” in 2013 and 2014 as majority of the projects that are planned or under construction will be completed by 2015.
Qatari companies are “unlikely to match this demand”, which means excess requirement for cement will have to be met through imports from Saudi Arabia and the UAE.
Cement producers in Qatar are planning to further expand their capacity in preparation for the “massive investment” in the country’s construction sector. Majority of construction activities will be in relation to infrastructure upgrade and real estate developments, the report said.
Qatar National Cement Company (QNCC) is the country’s largest cement producer with a production capacity of 4.4Mta and a market share of around 70%, the report said. QNCC has announced that it is going to increase its cement capacity by 0.93Mta to 5.36Mta in the coming years.
"Cement price in Qatar has been stable as it is controlled by the government,” the report said. On the other hand, prices have been volatile in the GCC (Gulf Cooperation Council) region, especially in the UAE.
“Going forward, we do not expect any volatility in the cement price and believe that it will continue to remain stable at current levels,” Commercialbank Capital said. (Abstracted from The Gulf Times)