Saudi Cement Sales.
The Saudi Arabian cement market is facing stiff competition among cement companies with the excess production capacity leading to record level clinker stock of 23.1 million tons by the end of October 2015. Nevertheless, Saudi Cement was able to maintain its total cement sales during the first 10 months of the year 2015 at 6,383 thousand tons compared to 6,474 thousand tons during the same period of previous year 2014 i.e. a decrease of 1.4% tons. This was mainly driven by growth in export sales of 14.9% to reach 402 thousand tons raising from 350 thousand tons for the same period of previous year 2014.
Furthermore, with the continuation of construction projects across the kingdom, demand for cement in the local market has improved significantly during the first 10 months of year 2015, with an increase of 8% compared to the same period of previous year 2014 i.e. to reach 49.7 million tons. Saudi Cement was able to maintain a local market share of 12% out of 15 national cement companies during this period despite the intense competition. It is projected that the annual demand for the local market in the year 2015 will reach nearly 60 million tons i.e. an increase of 6% compared to last year.