Cement sales for last October rose by 26.2% compared to the same month last year; observers attributed this to increased construction activity, which is driving up demand for cement, Conversely, total cement consumption during the first ten months of this year reached 50.24 million metric tons, an increase of 8% compared to the same period last year. According to Al Jazeera Capital, demand for cement is expected to continue growing slightly in the short term as a result of the recovery in domestic demand following the correction of the labor market situation last year, despite the current decline in oil prices.

Despite the rise in sales volume, the sector’s companies are likely to see their profit margins decline due to rising clinker inventories, which have led to increased competition for market share, in addition to falling sales prices.

According to the data, the domestic market has been affected by falling oil prices, which has impacted the implementation of construction projects, and the increase in demand for cement has not been as significant as cement companies had anticipated, which will contribute to inventory levels rising to more than 30 million metric tons in the coming period, all of which is currently held in the companies’ warehouses. Meanwhile, the increase in demand is currently slight compared to previous years, when it reached nearly 14%

Companies are awaiting the opening of export channels in the coming period, especially given that domestic inventory has risen to more than 23 million metric tons, while growth has been weak recently. The National Committee for Cement Companies at the Council of Saudi Chambers recently received government assurances that export opportunities would be opened following coordination with relevant government agencies and the preparation of the necessary regulations on this matter.