Strategy Note /
Saudi Arabia

Saudi Cement Monthly – August 2021 – Slight recovery as summer season ends

  • Local cement sales decreased 4.7% yoy (+13.6% mom) to 3.98mn tons in August 2021

  • Clinker exports stood at 469,000 tons in August 2021 vs 517,000 tons in August 2020

  • Clinker production decreased 6.2% mom (+7.8% yoy) to 4.57mn tons

Iyad Khalid Ghulam
Iyad Khalid Ghulam

Head of Equity Research

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SNB Capital
9 September 2021
Published bySNB Capital

Local cement sales for the Saudi cement sector stood at 3.98mn tons in August 2021 (-4.7% yoy, +13.6% mom). This represents a recovery after the weak sales recorded during July 2021 as the summer season is ending. However, the yoy decline is mainly attributed to 1) strong activity last year post COVID-19 lockdown and 2) a decline in mortgages over the past few months. Clinker exports fell 9.3% yoy to 469,000 but remained flat mom, resulting in total cement and clinker sales declining 5.9% yoy to 4.59mn tons (+12.5% mom).

Local sales: Local cement sales decreased 4.7% yoy (+13.6% mom) to 3.98mn tons in August 2021.

Export sales: Clinker exports stood at 469,000 tons in August 2021 vs 517,000 tons in August 2020 (+0.4% mom). Cement exports stood at 119,000 tons in August 2021 vs 144,000 tons in August 2020 (+26.6% mom).

Production: Clinker production decreased 6.2% mom (+7.8% yoy) to 4.57mn tons while cement production increased 13.4% mom (-2.9% yoy) to 4.16mn tons.

Inventory: Clinker inventory increased 0.4% mom (-16.4% yoy) to 34.0mn tons in August 2021.

Domestic market share: The market share for local cement sales of companies located in the Central region increased the most (85bps mom to 32.3%), while the market share of companies located in the Eastern region declined the most (-50bps to 14.9%).

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