Displaying items by tag: National Committee of Cement Producers

Bahrain: The local construction sector is expected to grow following the lifting of export duties on cement by Saudi Arabia. Saudi National Committee of Cement Producers chairman Jehad Al Rasheed told said that cement export duties were cancelled at the end of January 2018, according to the Gulf Daily News newspaper. Export tariffs were originally set at US$23 – 35/t but were then halved in July 2017 to encourage the market.

Bahrain had been the only country allowed to import cement from Saudi Arabia since 2009. However, the price rose significantly in March 2017 after the Saudi government introduced new tariffs and permitted cement exports globally.

Saudi Arabia: Demand for cement has dropped by 5% as production surpluses reached 22Mt, an amount that can cover cement consumption for five months. Jihad Al-Rashid, head of the National Committee of Cement Producers, said that total production of the national companies reached 57Mt/yr, according to local media. The committee is working with the Ministry of Commerce to allow companies to export cement as a solution. Al-Rashid attributed the existence of big surpluses of cement to a delay by the Ministry of Housing and a subsequent decline in the construction pace.

The fall in demand has occurred when cement producers predicted that demand would rise by 5%. Cement prices cannot be reduced as prices are fixed by the Ministry of Commerce. As a temporary solution some of the producers may extend maintenance periods. Abdulrahman Al-Qarni deputy president of Abawain Holding Company said that cement demand normally drops towards the end of each year, when the majority of construction companies have finalised their projects and begun to explore orders for the new year.