Riyadh – Mubasher: Cost pressures and lower demand and inventory remain the main concerns for the Saudi cement sector, while Ministry of Housing initiatives and lifting exports ban are the key catalysts, Al Rajhi Capital reported.
The research firm expected that the cement companies would tend to increase clinker production in the coming few months, before any potential removal of energy subsidies.
Most of cement companies offered deep discounts, especially in the Central and Western regions, while Southern cement continues to maintain stable selling prices since the first quarter of 2013.
"Cement inventories in the Kingdom continued to rise driven by both decline in sales volumes and rise in production levels," Al Rajhi Capital said.
