Displaying items by tag: Prices

The Gambia: The managing director of Jah Oil, Momodou Hydara, has attributed the ongoing cement shortage in the country to external constraints, including the shallow channel at the Port of Banjul and weather-related disruptions to operations. Hydara said that large vessels cannot dock at the port, and that smaller boats are facing delays due to adverse weather conditions. The shortage has disrupted construction activity and increased retail prices of cement across the country. The shortage has also been attributed to the government's April 2024 decision to increase import tariffs on bagged cement from Senegal.

Hydara said that Jah Oil has sufficient capacity to meet domestic demand. “As we speak, we have two ships at sea carrying 55,000t and 59,500t of cement each, and another carrying 55,000t en route to Banjul,” he said. The two ships contain approximately three million bags of cement, which would cover the monthly consumption of 30,000t. To ease pressure on port operations, Jah Oil has acquired two seagoing vessels, each with a 4000t capacity, to help offload cement from larger ships offshore.

Jah Oil is investing in its production capacity, with a new plant in Farafenni producing 100,000 bags per day, while another in Bafuloto, which can produce 200,000 bags per day, is nearing completion.

Pakistan: Since the closure of the Pakistan-Afghanistan border on 11 October 2025, Afghan coal imports and cement exports have been halted, raising prices and prompting northern cement producers to shift to coal imports from South Africa, Indonesia and Mozambique. The move follows rising tensions between the two countries, with the cement sector among the most affected.

A manufacturer said Afghan coal is no longer available and ruled out using Iran as an alternative route due to the lack of banking channels and the impracticality of transporting coal. It said Afghanistan accounts for about 7% of Pakistan’s cement exports. Topline Securities reported that DG Khan Cement will continue using imported coal, while some producers have begun importing RB2 grade.

Insight Research has reported that Cherat Cement, Fauji Cement and Maple Leaf Cement are among the most exposed, with Afghan exports accounting for 9.8%, 5.8% and 3.1% of their sales, respectively.

Zimbabwe: The government has relaxed regulations so that more cement can be imported into Zimbabwe. This aims to address cement shortages experienced recently due to a national construction boom, according to the Herald Zimbabwe newspaper. Minister of Skills Audit and Development, Professor Paul Mavima, said that cement prices will also decline as a result.

Historically, construction activity peaks between April and November, just ahead of the country’s rainy season, but demand in 2025, driven by both home building and commercial construction, has been described as ‘incomparable’ to previous cycles by dealers.
Zimbabwe’s cement industry has an installed production capacity of about 2.6Mt/yr, although output has been inconsistent due to ageing equipment and fuel shortages. While the country primarily imports cement from neighbouring Zambia, imports have dropped sharply, squeezing external supply just as domestic need accelerated.

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.

Bolivia: The Santa Cruz Chamber of Construction (Cadecocruz) has warned that the 65% increase in cement prices could ‘paralyse’ public and private construction projects across the country, according to Noticias Financieras. The organisation said the increase is inflating project costs, adding pressure to an industry that is reportedly already struggling with broader material price hikes. In response, the chamber has called for cement to be included among the materials covered by Supreme Decrees 5321 and 5452 on price readjustment, arguing that the measure would help to prevent work stoppages and job losses.

Myanmar: The Myanmar Cement Manufacturers Association held a coordination meeting at the Ministry of Industry in Nay Pyi Taw on 9 September 2025. Union Minister for Industry Charlie Than said that the Mandalay earthquake had damaged domestic cement plants, pushing up cement prices. However, he said that coordinated efforts between the association and relevant ministries meant that plants had quickly resumed operations and prices were returning to normal.

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: The Egyptian government has frozen the implementation of an earlier decision to reduce cement production capacities following a two-month suspension that took place during May and June 2025. The move aims to increase local supply and curb prices, which have reportedly been rising since the start of 2025 due to a decline in demand.

Shaimaa Aboulmagd, commercial director at Misr Beni Suef Cement, said the decision is expected to bring prices down further and that many cement companies have already started to reduce prices.

Ahmed El-Zeiny, head of the building materials division at the Cairo Chamber of Commerce, said the market is now anticipating price stabilisation due to increased supply, noting that the sector had recently faced reduced availability from higher exports and the closure of nine cement production lines.