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Saudi government committees and private sector officials are revisiting the terms regulating cement exports, Al-Eqtisadiah newspaper reported on Wednesday, citing Jehad Al-Rasheed, general manager at Yamama Cement and chairman of the National Cement Committee.
The National Committee of Cement had submitted requests to the authorities-- including the Saudi commerce ministry--to review export terms. The requests mainly relate to lifting the fuel price differentials for cement exporters.
Al-Rasheed said that other terms under which every producer is required to have a strategic clinker stock at no less than 10 percent of annual output were agreeable.
Meanwhile, Al-Rasheed added that he expects weaker cement sales over the next few months, due to slow demand.
The Saudi government had earlier approved a new mechanism to calculate fuel price differentials for steel and cement exporters.
The average export fees on cement’s range from SAR 85 to SAR 133 per ton while the export fees on iron ranges between SAR 58 and SAR 390 per ton.
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