Can the rapid growth in Mideast cement industry be sustained?

“The Gulf countries alone account for more than 2,100 existing and planned projects (construction) currently valued at US$1.2 trillion…continues with its enormous infrastructure and expansion plans…”
– May 21, 2007, www.ameinfo.com

Driven by petrodollar investments and a building boom mainly in Saudi Arabia, UAE, Qatar and Bahrain, the Middle East cement industry has seen a massive wave of capacity expansions.  Clinker supply has tightened and hence created upward pressure on cement prices.  Coupling high demand with higher cement prices means even better margins for the producers.  Seemingly the Gulf region is in for a prosperous time.

However, of late, the prospects of a supply glut have surfaced.  By 2010, the Gulf region is expected to produce around 200 million tons of cement.  UAE will emerge to be one of the largest producers with a yearly production of about 50 million tons and there are fears that the production boost in Saudi Arabia will outstrip demand.  There are also doubts if the announced construction projects will actually be realized.

“…big new low-cost producers from the Middle East are planning a new offensive in the East Africa market very soon…Saudi Arabia …in the advanced stages of completing 18 cement factories currently under construction.”
– Aug 7, 2007, www.allafrica.com

Demand developments in Africa is taking huge stride with the region embarking on large infrastructure program. Producers in India, China and even Middle East are
looking for export opportunities.  In East Africa, Lafarge’s Kenyan affiliate, Bamburi Cement has announced an expansion plan to increase its market share.  What are also the developments in South Africa?  Can the port and logistical facilities handle the imports?

CMT’s 2nd CemenTrade Mideast/Africa Conference aims to provide an update of the market dynamics in the Middle East and Africa.  Besides cement and construction markets updates including Saudi Arabia, UAE, Qatar, Iraq, Iran, Bahrain, South Africa, East Africa, Egypt and South Asia, the conference will also examine climate change & environmental issues, cementitious materials utilization and freight rates analysis for cement/dry bulk cargo carriers. 

A constructive platform for fruitful discussion, clinching business deals and networking, this is the forum for the international cement industry.  Register now to secure your seat!  Please go to www.cmtevents.com or send in your details to sasha@cmtsp.com.sg

You will network with:
• CEOs • Managing Directors • Presidents/Vice-Presidents • General Managers
• Marketing & Sales Directors • Procurement Directors • Production Managers
• Planning & Business Development Managers • Finance Directors
• Trading Managers • Operations Managers.
from International/Regional Cement, Ready-Mixed Concrete (RMC),
Precast and Building Materials & Raw Materials (Coal, Slag, Fly Ash, Steel) companies,
Construction/Infrastructure/Building/Equity/Research analysts,
project financiers and banks, engineering & technology and
equipment providers and Logistics and Shipping organisations
(Dry Bulk/Cement Carriers).