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Ali Al-Ayed, CEO of Yanbu Cement Co.
Yanbu Cement Co. (YCC) CEO Ali Al-Ayed said that the decline in cement demand in Saudi Arabia intensified competition among industry players, resulting in a drop in average selling prices.
However, the implementation of large projects will contribute to alleviating pricing pressures, he told Argaam.
Al-Ayed pointed out that price fluctuations and reductions are driven by sluggish demand and fierce competition, noting that the holy month of Ramadan usually witnesses a significant drop in cement demand.
The demand for cement in the Western Region decreased by 3.9% in 2023, compared to 2022, he added. The company’s average sales for large projects amounted to 2,100 tons per day in the fourth quarter of 2023.
He expected the company sales to remain stable in the first quarter of 2024.
Yanbu Cement’s market share reached about 8% by the end of 2023, the CEO said, adding that the clinker stock reached 5.8 million tons.
Al-Ayed said the company does not hold stockline inventory but adjusts production in line with market conditions and sells directly.
According to Argaam data, Yanbu Cement’s profit decreased by 44% to SAR 119.9 million by the end of 2023, compared to SAR 215.4 million a year ago.
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