Lebanon Businessnews News

Cement deliveries
surge in first six months
Municipal elections fueled public works
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Cement deliveries totaled 2.5 million tons in the first half of the year, increasing by ten percent compared to the same period of 2015, according to Central Bank statistics.

Cement deliveries had dropped 18 percent in the first six months of 2015 compared to the same period in 2014.

Adib Hashem, Commercial Director of Cimenterie Nationale, said that were three reasons for the increase:

Dry weather conditions in the first six months of the year encouraged people to build, the recent municipality elections also helped to boost demand when major public spending took a front seat just before elections, and the expected surge in steel prices failed to materialize, causing a building flurry.

Hashem said: “We do not expect the same percentage increase in the second half of the year but just a minor increase instead.”

Wadih Malha, Commercial Director at Ciment de Sibline, said: “We expect up to five percent increase in the deliveries this year compared to last year.”

The price of one ton of cement was sold at $85 x-factory and at $100 delivered, including VAT.

Cimenterie Nationale was the leader in cement deliveries, acquiring a 43 percent market share in H1, 2016. Holcim held 35 percent market share, and Sibline 22 percent.

Due to ongoing turbulence, there have been no cement exports to the traditional export markets in Syria, Iraq, Egypt, and Libya.
Reported by Rania Ghanem
Date Posted: Aug 23, 2016
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