Strategy Note /
Global

Saudi Cement Monthly: Local sales growth post Ramadan

  • Local cement sales increased 16.2% mom (-4.8% yoy) to 3.50mn tons in May 2022, compared to 3.02mn ton in April 2022.

  • Clinker exports stood at 460,000 tons in May 2022 vs 658,000 tons in May 2021 (-51.5% mom)

  • Clinker production increased 1.8% mom (+12.6% yoy) to 5.17mn tons, recording its highest level since July 2015

Iyad Khalid Ghulam
Iyad Khalid Ghulam

Head of Equity Research

SNB Capital
16 June 2022
Published by

The total quantities of cement and clinker sold by the Saudi cement sector stood at 4.19mn tons in May 2022, increasing 3.4% mom (-7.0% yoy). Local cement sales increased by 16.2% mom to 3.50mn tons (-4.8% yoy). We note that except Eastern Cement, all other cement players recorded a mom increase in local cement sales, but this was marginally offset by weaker exports which stood at 534,000 tons (-47.5% mom, -33.7% yoy). We believe the mom increase in sales came as a result of demand normalization post Ramadan break. Companies in the Eastern region had the highest decline in market share (-242bps) standing at 15.2% while companies in the Central region had the largest increase in market share, increasing by 326bps to 31.5%.

  • Local sales: Local cement sales increased 16.2% mom (-4.8% yoy) to 3.50mn tons in May 2022, compared to 3.02mn ton in April 2022.

  • Export sales: Clinker exports stood at 460,000 tons in May 2022 vs 658,000 tons in May 2021 (-51.5% mom). Cement exports stood at 74,000 tons in May 2022 vs 147,000 tons in May 2021 (+7.2% mom).

  • Production: Clinker production increased 1.8% mom (+12.6% yoy) to 5.17mn tons, recording its highest level since July 2015 (5.14mn tons). Cement production increased 1.8% mom (-2.1% yoy) to 3.40mn tons.

  • Inventory: Clinker inventory increased 4.0% mom (+8.1% yoy) to 36.05mn tons in May 2022, while cement inventory decreased 12.2% mom (-3.0% yoy to 1.30mn tons.