Cement sales volumes across Saudi Arabia declined in December on both a YoY and MoM basis, reflecting softer demand toward the end of the year, according to a report by Al Rajhi Capital. Despite the December slowdown, full-year sales recorded solid growth, supported by strong performances from leading producers.
Total cement sales fell by 1.8 per cent YoY and 1.4 per cent MoM to 5.14Mt in December. However, for FY25 as a whole, sales rose 10 per cent compared with the previous year to reach 56.2Mt, driven mainly by significant volume gains at Yamama Cement, Saudi Cement, and Arabian Cement.
The fourth-quarter performance remained resilient, with sales increasing 4.8 per cent YoY and 10.2 per cent QoQ to 15.59Mt, indicating sustained momentum heading into year-end.
Yamama Cement reported a sharp decline in December volumes but closed FY2025 with a markedly higher market share of 15.1 per cent, up from 11.9 per cent in FY24. Saudi Cement ranked second with a 13 per cent market share, compared with 12.5 per cent a year earlier, while Riyadh Cement maintained solid sales momentum during the month.
On a regional basis, December sales weakened in the northern, eastern, and central regions, declining by 8.6 per cent, 5.7 per cent, and 1.1 per cent YoY, respectively. The western region recorded the strongest growth at 1.7 per cent, followed by the southern region at 0.5 per cent.
For the full year, the central region led growth with a 17.8 per cent increase, followed by the eastern and western regions at 11.8 and 9.8 per cent, respectively. In contrast, sales in the southern and northern regions declined by 2.5 and one per cent.
Clinker inventories edged down by 0.6 per cent MoM to 43.8Mt in December. Riyadh Cement held the lowest inventory levels, equivalent to four months of last-twelve-month average sales, compared with an industry average of 11 months. Saudi Cement and Yamama Cement followed with inventories equivalent to six months of sales, while Southern Cement recorded the highest level at around 20 months, Al Rajhi Capital said.
