12-13 Oct, 2009 - Abu Dhabi, U A E
Millennium Hotel, Abu Dhabi
Millennium Hotel, Abu Dhabi
Saudi Arabia could finally lift the ban on export of cement. The decision to lift the export ban on cement has been pending with the Saudi Government, which is demanding an assurance from manufacturers that the prices will not be increased.
A senior industry expert said the government has to remove the ban to reduce stockpiles.
"According to information available, Saudi Arabia could very soon announce its decision to lift the ban. There is no other option left. The country's current annual production capacity is 17 million to 20 million tonnes more than the domestic consumption," said the official on condition of anonymity.
However, he said, it is not clear if the removal of the ban would be applicable to all companies or only to those that agree to recommendations set by the Saudi Trade and Industry Ministry.
Saudi Arabia had last week said it would continue with the ban on export of cement until producers agree to the demands and conditions set by the Ministry of Commerce, but added that export permission could be granted only to those companies accepting its conditions. Meanwhile, according to media reports, the ministry has decided to lift its restrictions on cement exports from May 25.
Saudi Arabia could export cement at Dh15 per bag [that weighs 50kg], he said. "At present we are selling in Saudi Arabia at Dh13 per bag. This is ex-factory price. The government, however, wants to bring down the prices to Dh11 per bag," he said. "I know in the UAE too the ministry has introduced a price cap of Dh14 per bag. But it is unrealistic for companies here to sell at such low rates."
According to the official, companies would rather opt for a cut in production than produce cement at a loss and stockpile. "If the government does not lift the ban, factories would prefer to go for production cuts. Given the present economic situation, we can expect a production cut of up to 30 per cent".
According to a recent report by NCB Capital, the 12 cement companies in Saudi Arabia have an estimated annual production capacity of 48 metric tonnes.
Source:http://www.cementchina.net/news/shownews.asp?id=5540, 20 May 2009
To learn more on Saudi Arabia’s cement exports, hear from Mr. Hassan Gabry, Commercial Director of Al Jouf Cement Company as he presents his paper on;
New Road Map for Cement Industry in Saudi Arabia
Speaking Slot: 12 October 2009, 11.25am
