Cement Dispatches- grew at 7.2% YoY
According to the data released by Yamamah Cement Co, cement dispatches for the month of April-2015 stood at 5.72mn tons, as compared to 5.33mn tons in April-2014, depicting an increase of 7.2% YoY and a fall of 2.9% MoM.
The YoY increase in dispatches is primarily due to improvement in demand, backed by higher construction activity, heavy infrastructure development and diminishing impact of labor shortage in the market. The cement consumption during the first 4M-2015 stood at 22.28MT depicting an increase of 9.5%YoY. In addition, the cement consumption in 2015 is expected to benefit more from the current government initiatives and the Ministry of Housing’s new plans that helps to meet the housing shortage.
On YoY basis, Najran and City Cement companies showed the most increase in their cement dispatches as they grew by 46.1% and 30.4% respectively for the month of April-2015. In contrast, Saudi and Tabuk cement companies showed a fall of 8.6% and 4.6% respectively. On MoM basis, Hail and City cement companies showed the highest growth of 13.1%MoM and 4.2%MoM respectively among the listed companies.
Clinker inventory levels have shown a slight monthly decline by 0.9%MoM, which was due to stability in volumetric sales for the comparative period and the lower clinker production growth of 1.3%MoM. The most MoM decline was registered by Northern Cement Company, which showed a fall of 14.0% due to lower clinker production of -39%MoM. However, City Cement Company witnessed an increase of 15.4% MoM in its clinker inventory due to high utilization rates of the new production line.
Najran Cement Company showed an improvement in its market share as it improved from 5.6% in April-2014 to 7.6% in April-2015. Whereas, Saudi Cement Company market share decline to 12.2% in April-2015 as compared to 13.8% in April-2014 due to the new capacity expansions in the industry and higher capacity utilization form other players.
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