A report by DSG Consultants has found that Algeria, along with Libya, is a major destination for cement exporters, due to domestic demand outstripping local supply.
In 2014, demand for cement was 27 million tonnes, while local production capacity was only 23 million tonnes, making Algeria the largest cement importer in the Mediterranean region with 5.2 million tonnes of imported cement.
In the first half of 2015, cement imports remained stable, due to the government's efforts to reduce imports.
During the first half of 2015, some 22.5% of imports came from Tunisia and Morocco, up from 16% in 2014. This is partially due to Spanish producers being less competitive.
Faced with market consolidation and unbalanced production capacities, traditional cement groups are seeking to encourage international cement trade in order to sell cement from countries with surplus cement to those with a shortage.
This challenge will raise the issue of logistics costs and encourage more efforts to be competitive in transport.
