Strategy Note /
Saudi Arabia

Saudi Cement Monthly: August 2022 – Lower sales mom due to Hajj holiday

  • Local cement sales decreased 14.7% mom (+4.8% yoy) to 3.67mn tons in July 2022

  • Clinker production increased 5.3% mom (-2.0% yoy) to 4.78mn tons

  • Clinker inventory increased 0.9% mom (+6.2% yoy) to 35.99mn tons in July 2022

SNB Capital
8 August 2022
Published bySNB Capital

The total quantities of cement and clinker sold by the Saudi cement sector stood at 4.50mn tons in July 2022, declining by 15.1% mom (+10.4% yoy). Local cement sales decreased by 14.7% mom to 3.67mn tons (+4.8% yoy), with none of the cement players recording a mom increase in local cement sales. Exports stood at 668,000 tons, decreasing by 17.2% mom (+19.1% yoy). We believe mom decline is due to Hajj Holidays. We note this is the second consecutive month that showed a yoy growth, which we believe is due to improved labor situation in the country after the ease in the travel restrictions. Companies in the Western region had the highest decline in market share (-114bps) standing at 24.5%, while companies in the Central region had the largest increase in market share, increasing by 111bps to 34.2%.

  • Local sales: Local cement sales decreased 14.7% mom (+4.8% yoy) to 3.67mn tons in July 2022, compared to 4.30mn ton in June 2022.

  • Export sales: Clinker exports stood at 482,000 tons in July 2022 vs 467,000 tons in July 2021 (-32.5% mom). Cement exports stood at 186,000 tons in July 2022vs 94,000 tons in July 2021 (+100% mom). This is the highest level since December 2020.

  • Production: Clinker production increased 5.3% mom (-2.0% yoy) to 4.78mn tons, while cement production decreased 7.8% mom (+8.7% yoy) to 3.96mn tons.

  • Inventory: Clinker inventory increased 0.9% mom (+6.2% yoy) to 35.99mn tons in July 2022. Cement inventory increased 8.3% mom (-7.6% yoy) to 1.29mn tons.

  • Domestic market share: Companies in the Western region had the highest decline in market share (-114bps) standing at 24.5%. Companies in the Central region had the largest increase in market share, increasing by 111bps to 34.2%.