Yanbu Cement targets exports

Yanbu Cement is targeting a rise in exports, having exported 997,000t of cement and clinker in 1Q19, approximately 40 per cent of Saudi Arabia's cement and clinker exports.

Speaking on domestic demand, Ahmed Zugail, Yanbu Cement's CEO, said: "Demand has not improved in 1Q19. The sector sales dropped nine per cent YoY in the first quarter."

Mr Zugail added that the government's mega projects like NEOM, the Red Sea, and Qiddiya are still in the planning and design phase.

"On the other hand, a rise in average selling prices is mainly attributed to two reasons. Firstly, higher exports in 1Q19, which led to better cash flows, and competition for the western region that accounted for 60 per cent of those exports," Mr Zugail continued.
 
"Secondly, the companies' ability to control clinker inventories, which led to reconsideration of their selling policies. Therefore, Yanbu Cement’s average selling prices in the Saudi market jumped nearly 20 per cent," he said.