{"id":646920,"date":"2024-10-03T00:00:00","date_gmt":"2024-10-03T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2024\/10\/03\/cement-production-cut-extended-again\/"},"modified":"2024-10-03T00:00:00","modified_gmt":"2024-10-03T00:00:00","slug":"cement-production-cut-extended-again","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2024\/10\/03\/cement-production-cut-extended-again\/","title":{"rendered":"Cement production cut extended again"},"content":{"rendered":"

Cement production cuts extended another year: <\/strong>The Egyptian Competition Authority (ECA) extended the cement supply cut for a fourth year, head of the cement division of the Federation of Egyptian Industries Ahmed Shireen Korayem told Enterprise. <\/p>\n

Remember:<\/strong> The ECA last year extended the cement supply cut<\/a> until July 2024 at the request of<\/a>cement producers<\/a> who were struggling with low prices, dampened demand, and supply gut. The ECA had initially introduced a one-year 10% supply cut in 2021 after an overflowing supply of cement left many cement makers on the brink of collapse. The cut has been renewed annually since then in response to requests<\/a> from cement factories.<\/p>\n

Can we see demand for cement rise? <\/strong>President Abdel Fattah El Sisi directed the government<\/a> to scrap the construction licensing requirements put forward in 2021 and reinstating the full provisions of the 2008 Building Law is expected to boost demand for cement, Korayem said. <\/p>\n

How big of a surge should we expect? <\/strong>Korayem was hesitant to predict a specific percentage of growth in demand, given inflation and the rising costs of building materials. While there is clearly demand for construction, it isn\u2019t obvious whether it will \u201cturn into real demand or remain latent amid continued economic pressure on individuals.\u201d<\/p>\n

Where things stand:<\/strong> Cement production remained stable throughout the year, despite declining domestic demand, Korayem told us. He predicted that total production would reach some 45 mn tons this year, down from just under 47 mn tons in 2023. The drop in demand may be offset by a 2-3 mn ton increase in exports, but \u201cexports are being sold at cost price to provide foreign currency for producers to cover their imports of coal and spare parts,\u201d he said. <\/p>\n

By the numbers:<\/strong> Local cement production increased by 6.5% y-o-y to 34.9 mn tons during the first eight months of 2024,according to market data seen by Enterprise. Some 13% of locally produced cement was exported during the first eight months of the year, compared to 7% during the same period last year.<\/p>\n","protected":false},"excerpt":{"rendered":"

The cut was initially introduced for a one-year period in 2021<\/p>\n","protected":false},"author":1,"featured_media":646921,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7255],"tags":[7195,317,72,7111,180,131,83],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-646920","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-manufacturing","tag-building-code","tag-commodities","tag-enterpriseam","tag-infrastructure","tag-legislation","tag-manufacturing","tag-real-estate","wpautop","entry"],"acf":{"mongo_id":"5d3d14d1-c9eb-476b-8d15-4f6d16a9f344","order":"10","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2024\/10\/261.jpg","photo_position":"above","homepage_title":"","full_issue_title":"Egypt\u2019s 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Ahmed El Zeini, head of the building materials division at\u2026","rel":"","context":"In "Basic materials"","block_context":{"text":"Basic materials","link":"https:\/\/enterpriseam.com\/egypt\/category\/industries\/basic-materials\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2021\/9\/310.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":548306,"url":"https:\/\/enterpriseam.com\/egypt\/2022\/08\/03\/cement-producers-welcome-another-year-of-production-quotas-and-a-slow-ramp-up-of-market-supply\/","url_meta":{"origin":646920,"position":3},"title":"Cement producers welcome another year of production quotas \u2014 and a slow ramp up of market supply","author":"enterpriseam admin","date":"3 August 2022","format":false,"excerpt":"Cement production quotas are sticking around for another year: The Egyptian Competition Authority (ECA) has heeded cement companies\u2019 calls to leave cement production curbs in place for another year \u2014 but will allow output to rise as demand picks up, Ahmed Shireen Korayem, head of the cement division at the\u2026","rel":"","context":"In "Industry"","block_context":{"text":"Industry","link":"https:\/\/enterpriseam.com\/egypt\/category\/industry\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2022\/8\/124.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":631548,"url":"https:\/\/enterpriseam.com\/egypt\/2018\/03\/21\/eca-denies-targeting-steel-manufacturers-with-price-fixing-probe\/","url_meta":{"origin":646920,"position":4},"title":"ECA denies targeting steel manufacturers with price-fixing probe","author":"enterpriseam admin","date":"21 March 2018","format":false,"excerpt":"ECA denies targeting steel manufacturers in price-fixing probe: The Egyptian Competition Authority (ECA) denied on Tuesday reports published in Al Borsa that it is investigating steel manufacturers on antitrust allegations. \u201cThe authority has received no complaints against the sector, but has conducted a standard periodical review of the steel and\u2026","rel":"","context":"In "Speed Round"","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":566665,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/07\/06\/cement-industry-is-finally-getting-a-lifeline\/","url_meta":{"origin":646920,"position":5},"title":"Cement industry is finally getting a lifeline","author":"enterpriseam admin","date":"6 July 2021","format":false,"excerpt":"Is the government finally stepping in to rescue the cement industry? 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