2023
Monthly Cement Dispatches Saudi Cement Sector | April 2023
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AJC Research Team
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©All rights reservedMay 2023
Monthly Cement Dispatches
Saudi Cement Sector | April 2023
Change in Cement Dispatches (Domestic Sales)
Cement Dispatches for April 2023
Seasonality affect still in action, as Eid Holiday occupied a third of the month: Domestic cement dispatches for the month of Apr-23
stood at 2.60mn, posting a decrease from April-22 level of 3.02mn tons by 13.9%Y/Y, as a result of Eid Al-Fitr holiday occupying a third of the month . Domestic dispatches also decreased M/M by 37.8%, whereas two thirds of the month were occupied by Ramadan and the remaining was occupied by Eid Holiday. Total export dispatches stood at 790k tons compared to 1.02MT tons in April -22, representing a decrease by 22.4%Y/Y. Clinker inventories stood at 36.8mn tons in April-23; showing an increase by 6.1%Y/Y and by 4.7% on a monthly basis. In 4M-2023, local dispatches decreased by 11.1%, reaching to 15.3mn tons, compared to 17.2mn tons in the 4M-2022. Meanwhile, export sales in 4M-2023 increased slightly by 1.6% reaching to 2.9mn tons, compared to 2.86mn tons in 4M-2022. Sales/clinker production ratio stood at 69.5% during April-23, where Northern cement registered the highest ratio at 135%.
Domestic cement dispatches decreased by 13.9%Y/Y, and decreased by 37.8% on monthly basis in April 2023.
Cement and clinker exports reached to 790k tons in April-23 compared to 1.02MT in April-22, recording a decrease by 22.4%Y/Y.
The total utilization rate of the cement sector in Saudi Arabia stood at 66.0%, a decrease by 75bps on monthly basis, and a decrease by 13bps compared to April-22.
Dispatches ('000) - LHS M/M Growth (%) - (RHS)
3,015 3,503 4,304 3,672 4,376 4,261 4,733 4,538 4,395 4,285 4,215 4,172 2,597
-50.0%
-30.0%
-10.0%
10.0%
30.0%
50.0%
500 1,500 2,500 3,500 4,500 5,500
Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23
Cement and Clinker Exports for April-23
Utilization Rate
Total Exports Apr-23 ('000) 313
126 121
64 54 50 39
13 10
0 50 100 150 200 250 300 350
Saudi Southern Yanbu Arabian Northern AlSafwa AlJouf Eastern Najran
Apr-22 Apr-23May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23
65.8% 65.7% 65.7% 66.1% 66.5% 67.2% 67.6% 67.8% 67.7% 66.9% 67.1% 66.7% 66.0%
64.5%
65.0%
65.5%
66.0%
66.5%
67.0%
67.5%
68.0%
Source: Yamama a Cement, AlJazira Capital Source: Yamama Cement, AlJazira Capital
Source: Yamama Cement, AlJazira Capital
At the end of April-23, clinker inventories stood at 36.8mn tons, recording an increase of 6.1%Y/Y, and an increase of 4.7% on monthly basis.
Change in Clinker Inventories
Total Invetories ('000) - (LHS) Change M/M (%) - (RHS)
36,049 35,663 35,986 35,789 35,798 35,472 34,800 35,061 35,098 35,130 35,146 36,784
-3.0%
-2.0%
-1.0%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
33,500 34,000 34,500 35,000 35,500 36,000 36,500 37,000
Apr-23
Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23
Mar-22 Mar-23
Source: Yamama Cement, AlJazira Capital
3
©All rights reservedFor 4M-23, Northern Cement and United Cement recorded the highest increase in dispatches by 88.1%Y/Y and 38.5%Y/Y, respectively. Meanwhile, Hail Cement and Umm AlQura Cement posted declines of 36.5% Y/Y and 31.5%Y/Y, respectively.
Northern Cement and Riyadh Cement recorded the highest increases in dispatches by 86.7%Y/Y and 30.3%Y/Y respectively. On the other hand, Hail Cement and AlSafwa Cement recorded the largest declines of 44.2% Y/Y and 37.5%Y/Y, respectively.
Northern Cement and AlJouf Cement showed the highest sales/clinker production ratios of 135.3% and 108.1%, respectively. On the other hand, Umm AlQura Cement and Najran Cement recorded the lowest sales/clinker production ratios of 39.5% and 47.4% respectively.
Cement Dispatches - (LHS) Y/Y Change (%) - (RHS)
12%
11%30% 87% -38% -44%-25% -34%
-2%-23%
-17%-24%
-30% -9%
-21% -12%
-13%
-60%
-40%
-20%
0%
20%
40%
60%
80%
100%
0 50 100 150 200 250 300 350
Yamama Saudi Southern Yanbu Qassim Riyadh Eastern Arabian Najran United Cement City AlJouf Northern Tabuk AlSafwa Hail Umm AlQura
Cement Dispatches - (LHS) Y/Y Change (%) - (RHS)
21% 39%5% 2% 88%
-12% -11% -8% -7% -9% -24% -19% -12%-37% -32%
-27%
-21%
-60%
-40%
-20%
0%
20%
40%
60%
80%
100%
0 500 1,000 1,500 2,000 2,500
Yamama Southern Saudi Qassim Yanbu Riyadh Arabian Najran Eastern City United Cement AlSafwa Hail Tabuk AlJouf Northern Umm AlQura
Average sales/clinker production Companies
135% 108% 95% 81% 75% 72% 71% 70% 62% 61% 60% 59% 59% 53% 51% 47% 39%
70%
0%
20%
40%
60%
80%
100%
120%
140%
160%
Northern AlJouf Saudi United Cement Yamama Southern Eastern Hail Riyadh Yanbu Arabian City Qassim Tabuk AlSafwa Najran Umm AlQura
Cement and Clinker Dispatches for 4M-2023 (Domestic Sales) Cement and Clinker Dispatches for April-23 (Domestic Sales)
Sales / Clinker Production for April-23
Source: Yamama Cement , AlJazira Capital Source: Yamama Cement , AlJazira Capital
Source: Yamama Cement , AlJazira Capital
Inventory levels of Northern Cement and Riyadh Cement declined by 41.6%Y/Y and 38.0%Y/Y, respectively. On the other hand, Najran Cement posted the highest increase of 49.6%Y/Y in its inventory levels, followed by AlSafwa Cement; which increased of 45.5%Y/Y.
Y/Y Change (%) - (RHS) Clinker Inventories (LHS)
50% 4% 7%
32% 45%
22% 14% 19% 34% 12% -6% -20% -24% -38% -42% -18%-20%
-60%
-40%
-20%
0%
20%
40%
60%
0 1,000 2,000 3,000 4,000 5,000 6,000
Yanbu Southern Eastern Umm AlQura Saudi Yamama Hail Arabian Najran Qassim United Cement Tabuk Riyadh AlJouf AlSafwa Northern City
Clinker Inventories – April-23
Source: Yamama Cement , AlJazira Capital
4
©All rights reservedMay 2023
Monthly Cement Dispatches
Saudi Cement Sector | April 2023
Yamama Cement and Saudi Cement recorded the highest market share in April-23, of 11.8% and 11.2%, respectively. Meanwhile, Umm AlQura Cement and AlSafwa Cement, both recorded the lowest market share of 2.3% and 2.8%, respectively. Riyadh Cement increased its market share by 2.4% Y/Y while Yanbu Cement market share decreased by 1.9% Y/Y.
On a TTM basis, Yamama and Southern Cement recorded the highest market share of 13.2% and 11.4%, respectively. Followed by Saudi Cement with a market share of 10.3%.
Qassim Cement recorded the highest EV/Ton of SAR 1,368 followed by AlJouf Cement with an EV/Ton of SAR 1,188. Meanwhile, Najran Cement recorded the lowest EV/Ton of SAR 422.
Market Share April-23 (LHS) Y/Y Change - (RHS)
%0.0 %0.1%1.1- %1.9- %1.1-%0.2- %0.5- %0.8-
%0.3 %0.4
%2.4 %1.4 %1.0 %1.7
%0.8- %0.2- %0.5-
-2.5%
-2.0%
-1.5%
-1.0%
-0.5%
0.0%0.5%
1.0%1.5%
2.0%2.5%
3.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
Yamama Saudi Southern Yanbu Qassim Riyadh Eastern Arabian Hail Najran United Cement City AlJouf Northern Tabuk AlSafwa Umm AlQura
Yamama Southern Saudi Yanbu Qassim Arabian Riyadh City Najran AlSafwa Eastern
Tabuk Umm AlQura AlJouf United Cement Hail
Northern
13.2%
11.4%
10.3%
8.7%
6.6% 8.1%
6.4%
5.2%
5.0%
4.2%
4.1%
4.0%
3.3%2.9%2.5%2.4% 1.8%
EV/Ton Sector's EV/Ton
AlQuraUmm 1,368
1,188 1,122 1,074
987 914
796 796 786 779 728
605 598
426 422
853
300 450 600 750 900 1,050 1,200 1,350 1,500 1,650
Qassim AlJouf Yamama Eastern Northern Saudi Southern Riyadh Yanbu City Arabian Hail Tabuk Najran
Market Share – April-23 (Domestic Sales) Market Share TTM
EV / Tonne (SAR)
Source: Yamama Cement , AlJazira Capital Source: Yamama Cement , AlJazira Capital
Source: Bloomberg, Yamama Cement , AlJazira Capital
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