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Although some Saudi cement companies are obtaining export licenses from the ministry of commerce and investment, export fees are affecting their competitiveness in the international market, Okaz newspaper reported, citing Jehad Al-Rasheed, chairman of the National Cement Committee.
The export fees on Saudi cement companies, which reach up to $35 (from SAR 85 to SAR 133) is higher than the cement export price in other countries, he said.
Meanwhile, continuing to stall new projects would double the current decline in sales, Al-Rasheed said, adding that he expects a 25 percent drop in cement sales in the upcoming period, while local consumption will surpass 50 million tons during 2017.
The Saudi government recently approved a new mechanism to calculate the fuel price differentials for steel and cement producers who export their products.
Cement’s average export fees are from SAR 85 to SAR 133 per ton while the export fees of Iron ranges between SAR 58 and SAR 390 per ton.
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