Special report - Amazon:
The darker the night, the more evidence that the dawn is approaching, a global rule that seems to be time with the Saudi cement sector.
Cement companies operating in Saudi Arabia are struggling to survive, in light of weak domestic demand, and export difficulties, on the one hand, and competition and higher costs, on the other hand.
And the matter reached its extent during the last period, as sales and production of companies declined remarkably during the past three years, which prompted some companies to reduce production lines.
Not long ago, there is talk about the possibility of rebuilding some countries in the region, which were affected by some unrest, which is the lifeline of Saudi cement companies in the event of its actual start, as these are Countries need millions of tons, and existing companies may not be able to cover them with current production capacities.
Namazin reviews the situation of the cement market in Saudi Arabia, its impact on companies operating in the sector, and expectations for the coming period, in light of the increase in export opportunities, and the emergence of some major projects.
Cement companies are looking for serious, fast measures to overcome export difficulties, after accumulating stockpiles to some extent, pushing each other to reduce its production lines, even temporarily.
Some cement companies are heading to discover external markets that may be far, somewhat, after the saturation of some neighboring markets, and the difficulty of exporting to others.
The Saudi Export Development Authority said earlier that it seeks to overcome the obstacles facing cement companies in foreign markets and work to open new markets.
The Saudi Ministry of Trade and Investment allowed the export door to open again to cement companies, which allowed some companies to export part of their production, but the opportunities for export are still limited.
Cement sales in 2018
The decline in sales dominated Saudi cement companies during 2018, and sales declined in all months of the year, except for June, which witnessed a slight rise.
A statistic revealed to Namazon, based on the monthly reports of Yamamah Cement Company, the total sales of Saudi cement companies decreased by 13% during 2018 compared to 2017, and total sales fell to 41.3 million tons Last year, compared to about 47.2 million tons for the previous year.
Production
The decline in sales cast a negative impact on the volume of production, as the total production of 17 cement companies decreased by about 11% in 2018, compared to 2017.
The total production of cement companies operating in Saudi Arabia decreased to about 42 million tons in 2018, ...
