Cement market sees 18 mn tons surplus in supply during 2016

The cement market produced 18 mn tons more than the local market wanted to buy last year, with total production reaching 72 mn tons, Al Tameer Cement’s Managing Director Samir Sabry said at the Egypt Builders Conference yesterday, according to an emailed statement. Sabry said that the surplus can be used in state construction projects currently being implemented, or can be exported. Industry players had previously said the market is saturated, but Sabry says there are six new production lines currently being added to the industry. The Industrial Development Authority (IDA) had tendered 14 cement licenses at the end of 2016, but only awarded three (to Egyptian Cement, South Valley Cement, and El Sewedy Cement). The IDA then opened tenders for the remaining 11 licenses in January, with seven companies filing papers to acquire the licenses as of early March.