Cement production surged since 2006

Industry resilient to downside impact of
domestic, regional developments: Blominvest

The cement industry showed resilience in 2011 despite the inevitable slowdown witnessed over that year, according to a report by Blominvest. The cement industry is driven by the real estate sector and government infrastructure projects. With public works almost nonexistent, the sector largely depends on the real estate sector to grow.

Prospects for the cement industry are strong, within a stable demand in the medium and long terms, the report said. But figures show that local demand for cement is likely to decline in the coming few years along with an expected slowdown in real estate activity.

The total square area for which construction permits have been registered, which indicates the level of future real estate supply fell by seven percent in 2011. The total square area for which permits were issued in the first half of 2012 also fell by ten percent.

Cement production was six million tons in 2011. Between 2006 and 2011, cement exports averaged one million tons annually. Exports mostly went to Syria and Iraq. Local sales of cement increased to around ten percent a year during the same period, according to Cimenterie Nationale, one of the local cement producers.

Cement deliveries rose by six percent in 2011, at a much slower pace than the previous years. The cement market is supplied by three plants, Cimenterie Nationale, Holcim (Liban), and Ciment de Sibline. The three plants accounted for 42 percent, 38 percent, and 20 percent of cement sales in 2011 respectively.

Cimenterie Nationale’s output grew by 12 percent to 2.8 million tons, while Holcim’s production was down by four percent, to 2.3 million tons. Ciment de Sibline saw a nine percent increase in production to 1.2 million tons.

The price of cement is fixed at $90 per ton, excluding VAT, for grey cement, and $181 per ton, excluding VAT, for white cement. The price of cement on the Syrian market has been declining recently due to lower demand resulting from the unrest there

Reported by Hanadi Chami