Displaying items by tag: Egypt

Egypt: Cement production rose to 17.6Mt between January and April 2025, up from 13.4Mt in the same period of 2024, according to data from the Central Bank of Egypt. Cement sales also grew to 14.1Mt, a year-on-year increase of 17%. The Cement Producers Division reports that 19 companies are operating in Egypt, with total investments exceeding US$4.8bn.

Cement exports reportedly reached US$770m in 2023, up by 14%, and US$780m in the first 10 months of 2024, up by 12%. The Export Council for Building Materials said that Egyptian cement was exported to 95 countries, led by African markets.

Egypt: The Maritime Transport Sector has reported that Egyptian ports will receive 170,000t of coal, out of a total of 500,000t of clean dry bulk cargo being delivered on the week commencing 3 November 2025.

Shipments include 60,000t of US coal for the National Cement Company at Beni Suef via Alexandria Port, 50,000t of Turkish coal for the National Cement Company at East Port Said, and a further 60,000t of US coal for Heidelberg Materials Suez Cement.

The Deputy Prime Minister of Egypt met with representatives of the cement sector last week to discuss the local market. The key topics were prices, increased production capacity and restarting suspended production lines. Then this week it was revealed that the government was preparing to issue two new cement plant licences by the end of 2025. So, what’s been happening in the local sector?

Readers may recall that the Egyptian government tackled overcapacity issues by way of cement production quotas back in 2021. This solved the immediate problems at the time but, since then, there has been a growing problem with local producers focusing on export markets to the detriment of the domestic market. For example, there was a shortage of cement reported in mid-2024 due to a shortage of trucks. Large quantities of these were being used, it transpired, to transport cement to neighbouring Libya. For more on this read Global Cement Weekly #760.

The price of cement peaked earlier in 2025. At this point the government took action by limiting cement exports to no more than 30% of a company’s production volume and by abolishing the quota system. It later reviewed the status of eight idle production lines in an effort to get them running again. Prices subsequently eased according to local media reports. Before the changes, the Cement Division of the Federation of Egyptian Industries said that the country had a production capacity of 76Mt/yr from 46 lines. Domestic consumption was estimated at 46Mt/yr and exports at 20Mt/yr giving a utilisation rate 87%. Note that this export figure is 30% of the total production of the country as a whole. For the first half of 2025, production increased by 24% year-on-year to 30.7Mt from 24Mt in the same period in 2024. Exports rose by 11.5% to 9.7Mt from 8.7Mt. However, data from Al Arabiya Business shows that exports fell by 25% in May and June 2025 following the government action. Production grew by 16%.

Vicat’s financial report for the first half of 2025 reported that export sales volumes in Egypt represented over 50% of the local subsidiary’s total sales volumes. It also noted that the domestic price surpassed the export price during the reporting period. Titan Group said that its local business had experienced an ‘impressive turnaround’ due to a construction boom in the country. It said that its plants operated at ‘high capacity’ with an alternative fuels (AF) thermal substitution rate of around 40%. It added that it was intending to expand storage capacity to support growing export volumes. By contrast, Cementir endured a tougher trading period due, in part, to less exports following technical problems related to the restart of a local production line.

A source quoted by Al Arabiya from the Export Council for Building Materials noted that there had been a ‘significant’ decline in exports to several major markets, including Libya, Lebanon, the US, Ivory Coast and Ghana. That anonymous source also warned that, if the problem with the domestic market could not be resolved quickly, then the sector risked losing export markets where reconstruction work was taking place. These comments were mirrored by Adam Khalil, a Building Materials Sector Analyst at Al Ahly Pharos Securities, who told local media this week that the anticipated reconstruction of Gaza presented benefits for Egypt-based construction and building materials companies. In particular, he noted the proximity of Sinai Cement to the Gaza Strip. Unfortunately, at the time of writing, the latest ceasefire between Gaza and Israel appears to have been breached.

The other part of the government action has been focusing on increasing AF substitution rates. At the meeting with the Deputy Prime Minister this month the stated aim was to reduce production cuts. To this end, a report on the number of waste recycling plants was reviewed and compared to the requirements of each cement plant. The government intends to set up ‘practical implementation mechanisms’ to maximise the usage of AF. Energy sources have been a particular bugbear for the cement sector in Egypt historically as the government has encouraged producers to switch fuels from time to time.

The wider economy in Egypt continues to face headwinds. Cementir, for example, in its half year report said that the country’s economy was “...being held back by high inflation, devaluation, rising energy costs, pressure on manufacturing industries and a revision of the state budget with the suspension of infrastructure projects.” However, the International Monetary Fund (IMF) upgraded its growth forecast for Egypt in 2025 and 2026 in mid-October 2025. The decision by the government to cap exports of cement and cut the production quota marks a serious change since 2021. It is clearly watching the situation closely. The timing from roughly in the middle of the year should make the effects clear to see in the annual reports in early 2026. We will wait until then.

Egypt: The government will issue two new cement plant licences before the end of 2025 to stabilise domestic prices and boost capacity to meet growing regional demand, according to Zawya news. The plan follows a recent meeting between cement producers and industry minister Kamel El-Wazir.

An unnamed official said “The two permits are expected to be released before the end of 2025, as each licence will include its own production line.”

The two plants will reportedly add 1.5-2Mt/yr to Egypt’s cement output. National demand is projected to rise to 52Mt by the end of 2025, up from 47Mt in 2024.

Egypt: Deputy Prime Minister for Industrial Development and Minister of Industry and Transport Kamel El-Wazir met with cement producers to discuss production trends, recent price declines, and ways to increase capacity and restart idle production lines, according to a ministry statement. The meeting forms part of the Ministry of Industry’s plan to enhance efficiency in the cement sector and ensure sufficient supply to the local market. Officials reviewed recent price movements, local production levels, and reasons for the shutdown of certain production lines, with a view to their reactivation, according to Zawya news. Cement manufacturers continue to submit monthly production reports to the General Authority for Industrial Development (IDA), including data on licensed capacities, actual output and exports. The review showed that several companies have the technical ability to exceed their currently licensed production limits.

In response, the IDA will study applications from these producers to expand permitted capacities, aiming to optimise resource use, increase supply and stabilise market prices. The meeting also addressed the causes of plant shutdowns, including spare part shortages and ongoing renovation of production units. Some companies are upgrading their systems to align with production and efficiency standards. El-Wazir reaffirmed the Ministry’s commitment to supporting plants in overcoming technical or administrative obstacles and restoring full operational capacity. The meeting further discussed expanding the use of alternative fuels derived from agricultural and household waste to reduce production costs and environmental impact. Cement companies reportedly expressed interest in this transition, viewing it as a way to enhance competitiveness and sustainability.

World: Market analysis agency S&P Global has collated the latest data on the global seaborne cement trade in the first half of 2025. Citing research by shipbroking house Howe Robinson Partners, it reported total volumes of 107Mt in the six-month period, up by 7% year-on-year from 100Mt in the first half of 2024. This is the largest global first-half volume recorded since 2021. Full-year seaborne cement trade volumes were 207Mt in 2024, up by 1.5% from 204Mt in 2023.

Vietnam and Türkiye remained the leading global cement exporters, with 16.1Mt and 12.5Mt, 15% and 12% of the total, respectively. Both countries slightly increased their export volumes. Next up in the rankings, Egyptian shipments rose by 14% to 10.9Mt, overtaking Iran, with 6.5Mt (down by 10%). Other rapid growth geographies included Indonesia, with 7.2Mt (up by 22%) and Pakistan, with 4.4Mt (up by 26%).

On the import side, despatches to the US fell by 1% to 11.4Mt, while Bangladeshi imports rose by 9% to 8.7Mt. West Africa was the largest regional market in terms of volumes. It imported 11.8Mt, up by 17%.

US: Peru-based UNACEM has appointed Rafael Villalona as the CEO of its operations in North America.

Previously, Villalona was the CEO of Cemex in the UAE from 2020. He worked for the cement producer in various roles from 2007 starting in the Dominican Republic. He became the Country Manager for Jamaica in 2011, Haiti in 2015 and the group’s Vice President Commercial & Logistics based in Egypt in 2019. He was also the chair of the Mexican Business Council in the UAE in 2024 and 2025. Villalona holds an undergraduate degree in civil engineering from the Ohio State University and a master’s degree in engineering from the University of Maryland.

Egypt: The government has announced a series of measures to stabilise the cement market following a period of price increases, according to Ahram Online. Deputy Prime Minister for Industrial Development and Minister of Industry and Transport Kamel El-Wazir announced steps to boost production, limit exports and introduce transparent pricing.

At the end of August 2025, El-Wazir met with major cement producers, regulators and chambers of commerce and called for further price reductions, alongside continuous production, and said that eight idle production lines would be restarted. Local cement production reached 25.39Mt between January and July 2025, up from 23.3Mt a year earlier. With demand expected to grow both domestically and abroad, the government has signalled that it may issue new licences for cement factories. Among the government’s new measures are requiring companies to print the anticipated retail price on cement bags at least one month in advance to protect customers from sudden price fluctuations.

Egypt: Sinai Cement recorded consolidated net profit attributable to the holding company of US$15.9m in the first half of 2025, up by 18% from US$13.5m in the same period of 2024. Sales rose to US$83.2m from US$55.5m in 2024. Standalone net profit after tax grew to US$15.9m, from US$13.6m in the first half of 2024.

Tanzania: Elsawy Ahmed has resigned as the manager of Twiga Cement’s Wazo Hill plant. He had been in post at the subsidiary of Heidelberg Materials since 2017. He is now working as a technical consultant.

Elsawy started his career as a Quality Control Supervisor for Assiut Cement in Egypt. He later worked for Cemex Egypt and became a plant manager for Cemex in Bangladesh in the early 2000s. He joined Italcementi in 2006 becoming Maintenance & Project Manager for subsidiary Suez Cement in the mid-2010s. Elsawy holds a degree in chemistry from Assiut University.