Yanbu Cement expects price drop amid stiff competition

Yanbu Cement Company director general, Ahmed Zugail, expects cement prices in the kingdom to drop due to stiff competition between producers.

Speaking to CNBC Arabia, Zugail said the sector was performing very well, which led to higher sales at his company compared to the same period year ago. However, he said cement consumption was lower this quarter due to Ramadan.

Yanbu Cement on Sunday posted H1-2015 net profit of SAR 453 million, a two percent increase compared to a year earlier.

Zugail said Yanbu’s clinker inventory, one of the largest in the kingdom, was at 2.8 million ton, equal to six months of sales.

He added that his company will hold a meeting after Eid to discuss profit distribution to shareholders.