Saudi producers prepare for discussions over export ban

Saudi producers prepare for discussions over export ban
Published: 19 February 2016

Tagged Under: Saudi Arabia Exports Middle East 

Saudi cement producers will meet government officials soon to discuss lifting the ban on their exports by around 20 per cent, a Saudi daily reported.

In turn cement producers will ensure a two-month supply for the local market, the Arabic-language Alyaum newspaper said, quoting Abdullah Ridwan, chairman of the construction and property committee at the Jeddah chamber of commerce and industry.

“The cement companies in the Kingdom are preparing to meet representatives from the commerce and industry ministry to discuss allowing them to export 20 per cent of their production...if the export is approved, the companies will be committed to supplying the local market with production for two months,” he said without specifying a date for the talks.

Mr Ridwan said cement supply in the Saudi market is currently higher than demand, warning that some cement firms could suspend production if they are not allowed to export their surplus output.

“This is because demand is currently weak…if the companies are allowed to export that quantity, this will positively affect the market and their business,” he said.

Earlier this month, Saudi Cement Co said it has decided to temporarily stop kiln 6 until domestic market conditions improve, including the lifting of the export ban.

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