Saudi cement producers have halted exports to Bahrain since mid-March, after the Saudi government raised export rates by 50 percent, said Faisal G. Shehab, chief executive officer at Bahrain’s United Cement Company (UCC), Al-Eqtisadiah newspaper reported.
This may result in a cement shortage in the kingdom of Bahrain, as Saudi exports fulfill about 40-60 percent of the cement needs in the Bahraini market, said Shehab.
He added that since Saudi and Bahraini cement companies had signed several export deals with penalty clauses, long before the Saudi government implemented the new terms, he added.
The newspaper also quoted an unnamed executive of a Saudi cement company as saying that the official Bahraini market may face a cement shortage, while Saudi cement producers may pay financial penalties due to delays in clearance of cement cargoes in port.
Saudi cabinet has set cement export rates at SAR 85-1333/ton, Argaam previously reported.
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