Saudi Arabia: cement sales hit new record

Cement sales in March 2012 grew by 12.6% to reach 4.9Mt, a record high for monthly sales, based on a new report issued by NCB Capital on Wednesday.

According to the report, clinker production grew by 10% to reach 4Mt, another record. However, clinker stocks declined sharply by 44.4% to reach 5.02Mt, the lowest level since August 2008.

“Domestic cement sales rose 12.6% YoY and 10.2% MoM to 4.89Mt in Mar-12. Local clinker sales rose to 135,000t against 10,000t in February 2012,” the report said.

On the other hand, “cement exports dropped 64.5% YoY and 17.7% MoM to 65,000t in March 2012,” the publication added.

Cement production increased 12.6% YoY to 5.1Mt in March 2012. Clinker production also advanced by 10% YoY to 4.02Mt.

The domestic cement market share of the unlisted companies decreased by 1% MoM to 18%. Market share including exports and clinker sales also declined by 1.3% MoM to 17%.

Saudi Arabia has 13 cement companies with an estimated annual cement production capacity of 52Mt. In March 2012, total cement sales stood at 4.89Mt versus 4.35Mt in March 2011 and 4.44 Mt in February 2012.

Domestic clinker sales were 135,000t in March 2012 against no sales in March 2011. Clinker sales surged to 135,000t in March 2012 from 10,000t in February 2012. In March 2012, cement exports stood at 65,000t from 79,000t in February 2012, a drop of 17.7% MoM. No company reported clinker exports for March 2012. Two companies, Saudi Cement and Eastern Cement, exported cement during the month.

In March 2012, domestic sales of cement grew by 12.6% YoY to 4.89Mt. The four private companies saw a 3.8% YoY increase in domestic cement sales, while the listed firms reported a rise of 14.7% YoY.

On a MoM-basis, domestic cement sales increased by 10.2% compared to the 4.44Mt  in February 2012. Apart from Aljouf Cement, all companies reported an increase on a MoM basis. Among the listed companies, Yanbu Cement reported the highest MoM increase of 68.6%, followed by Tabuk Cement and Arabian Cement with 31% and 13.6 % growth respectively.

On a YoY-basis, Northern Cement reported the highest rise of 121.7%, followed by Saudi Cement and Yanbu Cement with 41.5% and 25.5% increases, respectively. Najran Cement, Aljouf Cement, Qassim Cement and Tabuk Cement reported a YoY decline of 21.3%, 6%, 5.1% and 1.3%, respectively in domestic sales.