Southern Cement CEO says exports could help offset high costs

Cement producers in Saudi Arabia would be able to better manage costs if a ban on cement exports from the kingdom is lifted, Southern Province Cement Co.’s (Southern Cement) chief executive Safar Zafir told Al Arabiya TV.

Exports would help firms offset additional expenses that resulted from a hike in energy prices introduced by the Saudi cabinet earlier this year, Zafir said.

Cement producers have lately been pushing the government to lift an export ban on clinker as the local market has become oversupplied and prices have fallen.

Earlier this week, the commerce ministry said there was no objection to cement exports, adding that demands of producers would be submitted to King Salman for review. A ministry spokesperson said producers would need to maintain sufficient clinker stockpiles and stable prices before supplies could be exported.

Southern Cement’s FY-2015’s net income dropped 0.77 percent to SAR 1.03 million year-on-year on higher sales costs and administrative expenses.