Saudi cement firms flock to export markets: Official

Saudi cement producers showed strong interest in exporting their surplus product after the cancellation of export fees last week, an industry official told Al Eqtisadiah newspaper.

In the past two years, local cement producers saw their inventories pile up due to sluggish local demand and costly fees on exports. Last week, the government lifted the fees.

Producers are aggressively pursuing external export markets, Jehad Al-Rasheed, Chairman of the National Committee of Cement Producers, told the local newspaper.

The Bahraini market is the first priority for exports, given proximity and established contacts, he added.

"The positive impact of cancellation of export fees will help producers discharge a portion of their 70 million annual production and inventories that piled to 35 million tons."

Al-Rasheed expected no major impact on local supply if exports accelerated.

Producers who suspended production lines in the past months due to low local demand and export ban may reconsider resumption of production, he said.