Cement demand has declined by 5%, as production surplus hit 22 million tons, which cover consumption of five months, Al-Eqtisadiah newspaper reported citing an expert. The total production of the national firms amounted to 57 million tons, said Jihad Al-Rashid, head of the National Committee of Cement Producers.
He ascribed the existence of big surpluses of cement to waiting of people to the decisions of the Ministry of Housing and subsequent decline in the construction pace.
However, the decline in cement demand came when factory owners have expected that demand would climb up by 5%, but the demand fell by 5%; thus keeping an imbalance of 10% from the normal situation and sending the price of one bag of cement from SAR 13 to SAR12, Al-Rashid said.
Cement prices cannot be decreased more than this figure, as prices are set by the Ministry of Commerce unless cement manufacturers desire to compete with one another.
Photo Credit: Arabianeye-Reuters
He ascribed the existence of big surpluses of cement to waiting of people to the decisions of the Ministry of Housing and subsequent decline in the construction pace.
However, the decline in cement demand came when factory owners have expected that demand would climb up by 5%, but the demand fell by 5%; thus keeping an imbalance of 10% from the normal situation and sending the price of one bag of cement from SAR 13 to SAR12, Al-Rashid said.
Cement prices cannot be decreased more than this figure, as prices are set by the Ministry of Commerce unless cement manufacturers desire to compete with one another.
Photo Credit: Arabianeye-Reuters
Source:
Mubasher
