Cement Prices, Which Have Doubled over the Past Four Years, Will Peak in 2008 and...

Cement Prices, Which Have Doubled over the Past Four Years, Will Peak in 2008 and Soften in Both 2009 and 2010, as a Result of the Excess Capacity

DUBLIN, Ireland--(Business Wire)--
Research and Markets
(http://www.researchandmarkets.com/research/8fa0d7/gcc_cement_market)
has announced the addition of the "GCC Cement: Market Outlook to 2010
Report" report to their offering.

Your unique insight into the challenges facing this rapidly
evolving market. Produced by MEED, this report explores the key market
drivers to 2010.

The GCC cement industry is preparing for an unprecedented build-up
in production, as a result of $6,700 million worth of new investment.
Some 29 schemes are planned or under way in the biggest wave of new
capacity ever seen in the region. As a result of the investment
programme, capacity will more than double to about 106 million tonnes
a year (t/y) in 2010 from 50 million t/y today. The biggest increases
will be witnessed in Saudi Arabia and the UAE, which in three years'
time will account for 90 per cent of the GCC market. Even though
demand will remain robust, fuelled by a regional projects market worth
$1.5 trillion, strong economic growth and growing populations, it will
not be sufficient to accommodate all the supply increase. Saudi
Arabian producers look particularly vulnerable to over-capacity with
production potentially outstripping demand by 10 million-15 million
t/y in 2010. The supply overhang will lead to a sharp reduction in
plant utilization rates, the possible decommissioning of older
capacity and a renewed focus on exports by the kingdom's producers.
Cement prices, which have doubled over the past four years, will peak
in 2008 and soften in both 2009 and 2010, as a result of the excess
capacity. The biggest falls are expected in Saudi Arabia, where a
price war could break out among producers. The UAE is also expected to
see a price softening in 2009, although at about 10 per cent, it will
be less than in Saudi Arabia. Import dependency in most other GCC
states will see prices remaining relatively stable. Although
international producers have stepped up their presence in the GCC over
the past two years, they are still only marginal players, on account
of the high cost of entry. Increasing over-capacity and price
softening should see more reasonable valuations of cement companies
which will pave the way for some consolidation in the fragmented
industry. However, given restrictions on foreign ownership,
consolidation is likely to be led by regional rather than
international producers. Environmental and feedstock issues will
become more pronounced for the GCC cement industry in the years ahead.
With tougher environmental legislation likely and a rise in gas prices
expected, cement producers are facing higher production costs.

Key Topics Covered:

Preface, Executive summary, Introduction, Cement in the GCC, The
financial windfall, Drivers of demand, Cement prices, Imports and
exports, Investment, Supply to 2010, Cement by country,

- Bahrain

- Kuwait

- Oman

- Qatar

- Saudi Arabia

- UAE

International players, Environment, Tables, GCC project totals,
Kilo per capita consumption in selected major consuming countries,
Private and publicly owned GCC cement companies, GCC clinker and
cement capacity, production and sales, Selected GCC company financial
data, Middle East nominal GDP and current account surpluses, GCC
population forecasts, GCC projects by sector, Largest GCC construction
projects, GCC cement and ready-mix concrete prices, GCC cement and
clinker imports, Cement in the www.meed.com GCC 3, Investment in GCC
cement plant projects, GCC proposed clinker and cement capacity
additions, Forecast, Saudi cement supply and demand, Saudi designed
clinker capacity, existing and new players, Saudi cement industry
data, UAE cement industry data, UAE confirmed expansions and new
capacities, Multinational involvement in GCC cement sector, Figures,
GCC cement prices, UAE average cement price per tonne, Appendices, GCC
cement plant construction data, Saudi cement production, deliveries
and exports, UAE factories: clinker and cement production, Upcoming
UAE clinker and cement grinding facilities, UAE cement prices

For more information visit
http://www.researchandmarkets.com/research/8fa0d7/gcc_cement_market

Research and Markets
Laura Wood
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