Saudi Cement Sales Dip 1.8% in December, FY2025 Still Strong

Riyadh, Saudi Arabia: Cement sales volumes across Saudi Arabia declined in December on both an annual and monthly basis, reflecting softer demand toward the end of the year, according to a report by Al Rajhi Capital. Despite the year-end slowdown, full-year sales still recorded solid growth, supported by stronger performance from several leading producers.

Total cement sales volumes fell 1.8% year on year and 1.4% month on month to 5.14 million tonnes in December. The decline came after several months of steady activity, as demand moderated across multiple regions of the Kingdom.

Full-year performance remains resilient

While December figures softened, Al Rajhi Capital noted that cement sales for FY2025 rose 10% compared with the previous year, reaching 56.2 million tonnes. The growth was driven primarily by sharp volume increases at Yamama Cement, Saudi Cement, and Arabian Cement.

Fourth-quarter performance also remained relatively strong. Sales volumes increased 4.8% year on year and 10.2% quarter on quarter to 15.59 million tonnes, indicating underlying momentum heading into the close of the year despite the December slowdown.

Market share shifts among producers

Yamama Cement recorded a sharp decline in December volumes but ended FY2025 with a significantly higher market share of 15.1%, up from 11.9% in FY2024. Saudi Cement followed with a 13% market share, compared with 12.5% a year earlier, while Riyadh Cement maintained solid sales momentum during the month.

Regional trends show mixed performance

On a regional basis, December sales weakened in the Northern, Eastern, and Central regions, declining by 8.6%, 5.7%, and 1.1% year on year, respectively. In contrast, the Western region posted the strongest growth at 1.7%, followed by the Southern region at 0.5%, according to Al Rajhi Capital.

For the full year, the Central region led growth with a 17.8% increase, followed by the Eastern and Western regions at 11.8% and 9.8%, respectively. Sales volumes declined in the Southern and Northern regions by 2.5% and 1% over the same period.

Inventory levels edge lower

Clinker inventories edged down 0.6% month on month to 43.8 million tonnes in December. Riyadh Cement held the lowest inventory levels, equivalent to four months of last-twelve-month average sales, compared with an industry average of 11 months.

Saudi Cement and Yamama Cement followed with inventory coverage of six months, while Southern Cement recorded the highest inventory levels at 20 months, highlighting continued variation in stock positions across the sector.

Overall, the Al Rajhi Capital report points to a short-term easing in cement demand at year-end, while full-year data underscores the sector’s continued expansion, supported by infrastructure activity and market share gains among leading producers.