Strategy Note /
Saudi Arabia

Saudi Cement Monthly | Strong growth in exports was offset by weak local demand

  • Sales volume of the Saudi cement sector decline by 2.4% mom (+7.5% yoy) to 5.55mn tons in November 2022

  • Local cement sales decreased by 4.1% mom to 4.54mn tons (-1.8% yoy)

  • orts stood at 956,000 tons, increasing by 32.6% mom (+76.1% yoy)

SNB Capital
11 December 2022
Published bySNB Capital

Sales volume of the Saudi cement sector decline by 2.4% mom (+7.5% yoy) to 5.55mn tons in November 2022. Local cement sales decreased by 4.1% mom to 4.54mn tons (-1.8% yoy). Out of the 17 companies, only 5 companies showed a mom increase. Exports stood at 956,000 tons, increasing by 32.6% mom (+76.1% yoy). The mom decline in volume sales, came as a surprise after a 16.8% mom increase in sales during October 2022. Companies in the Central region after decline in market share by 2.1% in October 2022, showed an improvement by 30bps to 33.5%. While companies in the Northern region had the largest increase in market share, increasing by 35bps to 10.1%. 

  • Local sales: Local cement sales decreased 4.1% mom (-1.8% yoy) to 4.54mn tons in November 2022, compared to 4.73mn tons in October 2022.

  • Export sales: Clinker exports stood at 717,000 tons in November 2022 vs 453,000 tons in November 2021 (+43.4% mom). Cement exports stood at 239,000 tons in November 2022 vs 90,000 tons in November 2021 (+8.1% mom).

  • Production: Clinker production decreased 0.4% mom (-4.2% yoy) to 4.79mn tons, while cement production decreased 0.2% mom (+3.8% yoy) to 4.82mn tons.

  • Inventory: Clinker inventory decreased 1.9% on mom basis to 34.80mn tons (-0.5% yoy) in November 2022. Cement inventory increased 5.6% mom (-19.4% yoy) to 1.10mn tons.

  • Domestic market share: Companies in the Eastern region had the highest decline in market share (-36bps) standing at 14.5%. Companies in the Northern region had the largest increase in market share, increasing by 35bps to 10.1%.