INTERVIEW: Egypt's cement industry eyes export growth amid strong regional demand

Egypt remains a key player in the cement industry, not only in the Europe, Middle East and Africa region but also globally. Its export policies significantly impact global trade, as demonstrated earlier this year when the removal of subsidies on clinker exports to West Africa triggered a domino effect of supply shortages and price increases worldwide.

Platts, part of S&P Global Energy, talked to Amr Reda, CEO of Titan Egypt, to discuss current and future market trends in Egypt and the government's export policies, including an increase in production to meet strong local and export demand.

The interview has been edited for length and clarity.

Platts: What are your expectations for supply and demand trends and prices for both exports and domestic markets next year?

Amr Reda: The Egyptian cement industry is experiencing a remarkable year, characterized by strong regional export demand from countries such as Libya, the East Mediterranean, Syria, and potential demand from Sudan and Gaza once the conflict subsides. This surge in demand has prompted the government to revitalize the sector and restore production capacity. Several production lines that were mothballed in 2021 are now under consideration for reactivation.

As the industry shifts towards green cement and reduced CO2 emissions, production is now utilizing a lower clinker-to-cement ratio. This adjustment allows factories to increase their output, leading the government to raise licensed capacity based on clinker factor optimization. Additionally, the government has announced two new licenses, which will add another 4 million metric tons, bringing nominal capacity back to 82 million-83 million mt.

We anticipate gradual increases in capacity over the next two years. Some immediate production lines are expected to come online in the next few months, and with new permits, we anticipate additional volumes from existing capacity. Mothballed units are expected to be operational by mid-to-late 2026, and new licenses are anticipated to contribute to increased capacity within two years, enabling us to return to nominal capacity.

We anticipate price increases next year, aiming for a $2-$5/mt rise. Clinker prices have already rallied this year and are expected to maintain similar levels, indicating a positive outlook for clinker pricing as well.

Some plants have recently faced production challenges, resulting in the import of clinker to support local cement production capacity. This trend is likely to persist until mid-next year, when affected lines are back in sustainable operation.

Platts: There has been a gradual decline in the availability of clinker from Egypt, and we are hearing that companies will be more interested in exporting cement than clinker from next year onward. What trends are you seeing?

Reda: Domestic market growth is robust, averaging around 12% year over year, fueled by Emirati investments in the North and new projects in the North Coast and Red Sea areas, totaling approximately $22 billion. This growth is further supported by ongoing infrastructure improvements across the country, resulting in an unexpected surge in local demand that led to government intervention in June, following a spike in domestic prices.

The shift from clinker to cement, driven by sustainability commitments from multinational corporations to meet CO2 targets, has resulted in increased cement exports and decreased clinker exports. Last year, Egypt exported 11 million mt of clinker, with projections of around 6 million-8 million mt this year. In contrast, cement exports rose from 8 million mt last year to an anticipated 12 million mt this year, indicating a significant shift in the balance between cement and clinker exports -- a trend expected to continue.

Clinker exports are expected to remain below 8 million mt, potentially decreasing to 6 million mt as the focus continues to shift.

There are numerous potential investments aimed at increasing our export capacity. Currently, Egypt lacks adequate export facilities at ports, which hampers our ability to load larger ships efficiently. Investments are being considered to enable loading Panamax-sized vessels, enhancing our capacity to serve West Africa and the US. With these new investments, we will establish at least four fully equipped terminals for faster cement loading, improving our market responsiveness.

Platts: How has the year been so far, both in the domestic and export markets, and what are the expectations for next year?

Reda: We experienced a better-than-expected 2025, with the cement sector showing improvement over 2024, marking the first correction towards profitability. We aim to maintain this momentum while balancing local supply, government priorities, and export support. The government's mandate is clear: as long as producers meet local demand at reasonable prices, they can export freely. Although there is a cap on exports, it is a total market cap, meaning different plants have varying capacities for export. Overall dynamics are positive, allowing for a diverse market presence.

Demand for reconstruction in Gaza, Syria, Libya and Sudan also presents future opportunities but the availability of supply will be crucial.

Egypt's market share in the US is growing, with several Egyptian companies holding positions both locally and internationally, particularly in the US market. This trend suggests that the US will account for a larger share of exports moving forward. At Titan, our primary markets include the East Mediterranean and Libya, with potential opportunities in the US, as well as exports to Sudan, Syria and Gaza in the future, focusing primarily on cement rather than clinker.

Platts: With CBAM implementation in Europe, what other steps are you taking in your decarbonization journey? How important is the European market for you?

Reda: The government has expressed a strong interest in promoting the use of alternative fuels, leading to numerous discussions on utilizing refuse-derived fuel instead of fossil fuels to reduce CO2 emissions and maximize cost-effective alternatives. Discussions are also underway regarding the regulatory changes needed to access available waste and optimize its value. At Titan, we have invested in a solar power project as part of Egypt's first peer-to-peer renewable scheme, which could significantly benefit the industry by maximizing the use of alternative energy sources.

Although not historically a significant market for Egyptian producers, we are part of a European group and closely monitor trends. Egypt is taking the Carbon Border Adjustment Mechanism (CBAM) seriously, as all other industries exporting to Europe are actively working on their roadmap to compliance. While cement may not be a direct focus today, we are preparing for future guidance as Europe leads the way in decarbonizing the sector.