Egypt sees signs of stablisation

Egypt sees signs of stablisation
Published: 05 November 2013


Signs of stability are beginning to emerge in the Egyptian cement market with visibility improving in several areas, a recent flash note by CM-CIC Securities highlights.

The research house believes visibility is improving on several points. Firstly, volumes have been catching up since August and were up by 15 per cent during the month followed by a three per cent increment in September.

Moreover, a better pricing scenario has been witnessed through 2013, with an increase of 15 per cent overall in the year-to-date. 

CM-CIC Securities also notes that an “elastic effect” seems to be taking place for the historic players impacted the most by the gasoline rationing and the need to ‘shed’ market share to new entrants. Therefore, Lafarge, which has lost six points of market share in the past two years has caught up sharply in 3Q13 (1.28Mt, ie, +5 per cent);

Finally, the security situation is starting to improve, which is set to benefit Vicat’s operations in the country that have been heavily impacted to-date.