Egypt's cement industry is undergoing a profound strategic shift. In the first 11 months of 2025, cement exports fell to $806 million, down 4% year-on-year, continuing the downward trend of the past six months. This change is particularly noticeable because Egyptian cement exports maintained a strong monthly growth of more than 15% in the same period last year. Under the background of continuous increase in production and continuous inquiry in overseas markets, why did exports shrink instead? The answer points to a strong recovery in the domestic market. Ahmed Zeni, chairman of the Building Materials Branch of
the Builders Federation, pointed out that three factors were driving the shift. The primary reason is the explosive growth of domestic demand. In May 2025, the price of Egyptian cement once broke through the historical high of 5000 Egyptian pounds per ton, and the shortage of supply was highlighted. The government immediately stepped in and suspended the Competition Authority's decision to allow companies to cut capacity, effectively increasing market supply and pushing prices down significantly from July. The decline in both cement and steel prices has greatly stimulated real estate developers to speed up the implementation of shelved projects, and domestic orders have surged.
Secondly, the liquidity of US dollars in the banking system has improved significantly, and enterprises are no longer anxious about foreign exchange demand. This sense of security enables manufacturers to serve the local market more calmly without rushing to export for foreign exchange. The third factor is the most critical-the difference in profits. At present, the domestic cement price is about 79 US dollars per ton, which is 500 Egyptian pounds (about 10-15 US dollars) higher than export price. Such an obvious price difference naturally drives all producers, including foreign-funded enterprises, to give priority to meeting domestic orders.
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