Middle East’s cement industry is booming, following the rise in infrastructural activities in the region. Just this April, Saudi Arabia ordered a 10 million t cement import to end the country’s cement shortage. To further support the country’s multi-billion dollar infrastructure and housing development plans, new cement capacities are also expected to be built. Orders have been passed down for three to four new cement plants to be built with a budget of USD 800 million. These new capacities are expected to come on stream in three years.
Further down in Oman, cement demand growth is expected to spike as the government increases spending on roads and infrastructure projects. Demand growth will also be observed in Turkey as the nation moves out of stagnation towards large construction projects such as highways and power plants. Amidst optimistic demand growth, Turkey, however, may be struck with lower exports in the face of expanding cement capacities in the region’s importing countries.
One country that is enjoying increasing cement production is Iran. According to reports, Iran’s cement capacity will “reach 75 million t by the end of the current Iranian calendar year”, with an estimated 12 million t for export. Iran’s capacity is also likely to hit 110 million t in 2015, as stated by Iran’s Mines and Trade Minister.
The production growth comes timely as its neighbor, Iraq, is facing cement insufficiency due to increased reconstruction work and foreign investment in the country. At its current 12 million t cement capacity from the 21 local plants, Iraq is facing an estimated 6 million t shortage. Following the announcement that cement trading between Iran and Iraq is to resume with a $5 increase in price, the cement shortage in Iraq may well see an end.
More cement trade movements will be expected from Iran and Iraq as the former invests $245 million in a 2 million t annual capacity cement factory in Iraq. The factory is expected to come on stream in two years and will feature the complete use of Iranian expertise and technology. On top of this, Iran has also expressed interest in investing in its neighbor’s infrastructure projects and help Iraq meet the demands across several sectors.
More updates on Middle East’s upcoming projects, trade trends and market opportunities will be elaborated at the 8th Middle East CemenTrade in Istanbul this October 22-23. Visit the Event Page for more details.
Date: 22-13 Oct 2013
Venue : Istanbul/TURKEY
Contact:Ms Grace Oh