Saudi 10-month demand update

Saudi Arabia consumed 50.2Mt of cement in the first 10 months of 2015, up by eight per cent, reflecting increased construction activity in the kingdom, according analysts Aljazira Capital. Cement dispatches for October 2015 reached 5.13Mt from 4.06Mt in October 2014, signalling a rise of 18.2 per cent MoM and 26.2 per cent YoY.

The research house forecasst that cement demand will maintain a modest growth in the short term due to the recovery of the local market after last year’s shortage of construction labourers and continued Government investment in infrastructure projects. Strong growth in residential buildings will also aid cement demand.

Meanwhile, profit margins are likely to fall, mainly because of the build-up of high clinker storage.