Regional Focus: Saudi Arabia's cement trade conflicts

Following a complete ban on exports, Saudi Arabia's Ministry of Commerce and Industry has cleared the path for renewed imports. Although fuel supplies have now been guaranteed, disagreements persist over pricing, production capacity and competition under tight controls. Meanwhile, the government asserts a cement deficit nearing 12 million tons, but some numbers hint an oversupply should government plans fail to materialize and sustain over the medium term.

Ever since 2005, when King Fahd intensified efforts to diversify the Saudi economy and promote private enterprise and investment, the cement sector has known a remarkable increase in demand, from values lower than 20 million tons in 2005 to the 49 million tons registered in 2011. Today, demand growth expectations have settled around ten to 12 percent for 2012 and a further eight percent in 2013.

Read the rest of the article in the CemWeek Magazine issue 8.