Strategy Note /
Saudi Arabia

Saudi Cement Monthly | March 2023 | Low domestic demand mitigated by exports

  • Saudi cement sector’s total sales volume decreased by 0.5% mom (-1.3% yoy) to 4.90mn tons in February 2023

  • Local cement sales decreased by 1.6% mom (+1.4% yoy) to 4.22mn tons

  • Out of the 17 companies, 7 showed a mom increase

SNB Capital
13 March 2023
Published bySNB Capital

Saudi cement sector’s total sales volume decreased by 0.5% mom (-1.3% yoy) to 4.90mn tons in February 2023. Local cement sales decreased by 1.6% mom (+1.4% yoy) to 4.22mn tons. Out of the 17 companies, 7 showed a mom increase. We believe the decline is mainly attributed to a slowdown in the residential sector. Exports stood at 682,000 tons, increasing by 6.9% mom (-8.6% yoy). Companies in the Southern region had the largest decline in market share decreasing by 127bps to 16.3%, while companies in the Northern region had the largest increase in market share, increasing by 81bps to 11.2%.

  • Local sales: Local cement sales decreased 1.6% mom (+1.4% yoy) to 4.22mn tons in February 2023, compared to 4.29mn tons in January 2023.

  • Export sales: Clinker exports stood at 508,000 tons in February 2023 vs 422,000 tons in January 2023 (+20.5% mom). Cement exports stood at 174,000 tons in February 2023 vs 119,000 tons in February 2022 (-19.4% mom).

  • Production: Clinker production increased 1.8% mom (+3.2% yoy) to 4.61mn tons, while cement production increased 0.1% mom (+3.6% yoy) to 4.37mn tons.

  • Inventory: Clinker inventory increased 0.1% on mom basis to 35.13mn tons (+1.7% yoy) in February 2023. Cement inventory decreased 1.8% mom (-25.4% yoy) to 1.07mn tons.

  • Domestic market share: Companies in the Southern region had the highest decline in market share (-127bps) standing at 16.3%. Companies in the Northern region had the largest increase in market share, increasing by 81bps to 11.2%.