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13-Apr-2016

Government sets four conditions for allowing producers to export cement

The Saudi government has set four conditions for cement producers for gaining export licences, according to Assistant Undersecretary for Consumer Affairs at the Ministry of Commerce and Industry. The conditions needed for cement producers to export include: i) being a licenced producer; ii) the cement supply in the market to be sufficient to cover local demand, which is to be decided by the Ministry of Commerce and Industry; iii) having a minimum strategic inventory of clinker at 10% of annual production; in addition, the previously-imported clinker amount that enjoyed government subsidy cannot be used for exports, unless it had been imported for over a year. Also, the government will collect the increment between local and global energy prices, where the Ministry of  Commerce and Industry will have the final say on the allowance of exporting cement. (Al Yaum)

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