Saudi Arabia’s high-profile large-scale project will be unlikely to halt a fall in cement demand in 2019, according to Al Rajhi Capital.
The third-quarter of 2018 saw sales volumes decrease by 13 per cent YoY with average sales prices remaining week despite the price hike in the fourth quarter experienced by some cement producers.
In 2019 this decline in demand is expected to continue as the government’s capital spending remains limited and construction costs rise. The research house forecasts domestic cement consumption to fall of five per cent YoY to around 39Mt with the central region being impacted particularly. City Cement, Riyadh Cement and Qassim Cement have seen sales decreased by double digits.