Egypt cracks down on soaring cement prices

Egypt’s government has moved to stabilize the cement market after months of sharp price increases. Deputy Prime Minister for Industrial Development and Minister of Industry and Transport Kamel El-Wazir announced steps to boost production, limit exports, and introduce transparent pricing.

Officials say the market is now better supplied, but industry leaders disagree on the causes of the crisis. Some argue it was the result of temporary demand shifts, while others point to deliberate production cuts, reflecting the ongoing tension between protecting consumers and maximizing company profits.

In an attempt to regulate one of the country’s most sensitive markets, one that affects both state projects and citizens, Minister El-Wazir held an extensive meeting with major cement manufacturers.

The meeting, held at the end of August, was attended by officials from the investment sector, chambers of commerce, the Competition and Consumer Protection Authorities, and the Industrial Development Authority (IDA).

It carried a clear message from the state: it is time to restore balance to the market and address challenges that have led to price spikes in recent months.

During the meeting, the minister acknowledged that cement prices had recently dropped significantly but stressed that the decrease was still insufficient to achieve the required market balance.

He also called for further price reductions while ensuring continuous production and profitability for factories.

He urged factories wanting to expand output to submit formal requests to the IDA to amend their licenses for maximum efficiency.

He also announced plans to restart eight idle production lines, including some shut down for technical or environmental reasons, such as the need for a bypass landfill at a Beni Suef factory.

Disputed causes of the crisis
 

Ahmed El-Zeiny, head of the General Division for Building Materials at the Federation of Egyptian Chambers of Commerce, argued that the current situation is not a natural supply-demand issue but rather a direct outcome of what he called “monopolistic practices” that began nearly four years ago.

He told Ahram Online that several major foreign companies had applied to the Competition Authority for official approval to cut production under the pretext of balancing costs by reducing supply. This approval was initially granted for one year and later extended.

According to El-Zeiny, this move triggered an unprecedented surge in cement prices, with the price per ton jumping from around EGP 800 to over EGP 5,000 at the height of the crisis in April and May.

He argued that the deliberate market shortage was not caused by changes in costs or energy but by a clear plan to maximize profits, noting that nine production lines were shut down, including three in a single factory.

He also pointed out that foreign companies had not upgraded any of their lines despite receiving significant government incentives.