Saudi cement companies saw profits rise 8.2 per cent as cement demand in the kingdom continued to expand on the back of large projects, said Global Research in its June 2013 report.
Cement demand in the 1Q13 stood at 15.5Mt compared to 14Mt in the same period last year. Saudi Cement and Southern Province Cement lead the sales volume rankings, resulting in market shares of 15.7 and 13 per cent, respectively.
Cement output rose 16.3 per cent to 13.1Mt while clinker production increased 9.3 per cent to 15.6Mt. At company level, Yanbu’s clinker production witnessed the largest expansion at 61.4 per cent while Saudi Cement recorded a 30.3 per cent rise. In terms of cement output, Yanbu’s production grew by 51 per cent, followed by Al-Jouf, which saw cement output rise by 12.5 per cent.
While average realisation prices fell 2.5 per cent to SAR254.10/t in the quarter, increasing cement demand compensated for the drop. Arabian Cement and Eastern Cement prices were hightes at SAR306/t and SAR276/t respectively. Lowest realisation price was that of Al Jouf Cement and Southern Province Cement at SAR224/t and SAR247/t, respectively.
