Egypt cement volumes hold firm

Egypt’s cement volumes demonstrated resilience over the Jan-May 2014 period with the pricing environment also positive.

During the first five months of the year, volumes totalled 21.7Mt – an increase of 1.8 per cent compared to the same period of 2013 which was impacted by interruptions in energy supplies and exceptional political events, writes CM-CIC Securities.

Lafarge posted a particularly strong performance, with volumes up by 18.9 per cent (2.5Mt) in the Jan-May period, and by 19.5 per cent in the first half of the year (3.125Mt).

Sinai Cement (part of the Vicat Group) also reported an increase of 6.2 per cent to 874,000t over the five-month period, while its closest direct rival El Arish (which posted strong growth in 2012-13) saw volumes collapsing by 50 per cent. Suez Cement trended in line with the market, with volumes up 1.7 per cent to 3.3Mt.

Cement pricing was also buoyant at close to EGP700/t (delivered), translating into an 18 per cent increase versus 2013, CM-CIC Securities highlights.