Cement Prices, Which Have Doubled over the Past Four Years, Will Peak in 2008 and Soften in Both 2009 and 2010, as a Result of the Excess Capacity.

DUBLIN, Ireland -- Research and Markets (http://www.researchandmarkets.com/research/8fa0d7/gcc_cement_market) has announced the addition of the "GCC Cement: Market Outlook to 2010 Report" report to their offering.

Your unique insight into the challenges facing this rapidly evolving market. Produced by MEED, this report explores the key market drivers to 2010.

The GCC cement industry is preparing for an unprecedented build-up in production, as a result of $6,700 million worth of new investment. Some 29 schemes are planned or under way in the biggest wave of new capacity ever seen in the region. As a result of the investment programme, capacity will more than double to about 106 million tonnes a year (t/y) in 2010 from 50 million t/y today. The biggest increases will be witnessed in Saudi Arabia and the UAE, which in three years' time will account for 90 per cent of the GCC market. Even though demand will remain robust, fuelled by a regional projects market worth $1.5 trillion, strong economic growth and growing populations, it will not be sufficient to accommodate all the supply increase. Saudi Arabian producers look particularly vulnerable to over-capacity with production potentially outstripping demand by 10 million-15 million t/y in 2010. The supply overhang will lead to a sharp reduction in plant utilization rates, the possible decommissioning of older capacity and a renewed focus on exports by the kingdom's producers. Cement prices, which have doubled over the past four years, will peak in 2008 and soften in both 2009 and 2010, as a result of the excess capacity. The biggest falls are expected in Saudi Arabia, where a price war could break out among producers. The UAE is also expected to see a price softening in 2009, although at about 10 per cent, it will be less than in Saudi Arabia. Import dependency in most other GCC states will see prices remaining relatively stable. Although international producers have stepped up their presence in the GCC over the past two years, they are still only marginal players, on account of the high cost of entry. Increasing over-capacity and price softening should see more reasonable valuations of cement companies which will pave the way for some consolidation in the fragmented industry. However, given restrictions on foreign ownership, consolidation is likely to be led by regional rather than international producers. Environmental and feedstock issues will become more pronounced for the GCC cement industry in the years ahead. With tougher environmental legislation likely and a rise in gas prices expected, cement producers are facing higher production costs.

Key Topics Covered:

Preface, Executive summary, Introduction, Cement in the GCC, The financial windfall, Drivers of demand, Cement prices, Imports and exports, Investment, Supply to 2010, Cement by country,

- Bahrain

- Kuwait

- Oman

- Qatar

- Saudi Arabia

- UAE

International players, Environment, Tables, GCC project totals, Kilo per capita consumption in selected major consuming countries, Private and publicly owned GCC cement companies, GCC clinker and cement capacity, production and sales, Selected GCC company financial data, Middle East nominal GDP and current account surpluses, GCC population forecasts, GCC projects by sector, Largest GCC construction projects, GCC cement and ready-mix concrete prices, GCC cement and clinker imports, Cement in the www.meed.com GCC 3, Investment in GCC cement plant projects, GCC proposed clinker and cement capacity additions, Forecast, Saudi cement supply and demand, Saudi designed clinker capacity, existing and new players, Saudi cement industry data, UAE cement industry data, UAE confirmed expansions and new capacities, Multinational involvement in GCC cement sector, Figures, GCC cement prices, UAE average cement price per tonne, Appendices, GCC cement plant construction data, Saudi cement production, deliveries and exports, UAE factories: clinker and cement production, Upcoming UAE clinker and cement grinding facilities, UAE cement prices

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