Saudi Cement sector takes stock

NCB Capital, Saudi Arabia’s largest asset manager, expects the Saudi cement sector to continue witnessing strong demand in 2012, led mainly by government projects.

The new NCB Capital report analysing the Saudi cement sector noted that there are concerns on supply due to an apparent inability by Yanbu and Southern Cement to receive increased quantities of subsidised fuel from Aramco for their new lines, leading to potential delays in the start of their operations.

“There have been ongoing concerns that Yanbu and Southern Cement have been unable to receive assurance from Aramco that they will receive the subsidised fuel to run their new lines. This puts into doubt whether or not these new lines, and the additional 4.5Mt of capacity will be able to commence commercial production on time in 2012,” stated the report.