(The United Arab Emirates) -- Cement prices in the UAE are set to increase from February 1. A decision to this effect was taken following a decision by the UAE Cement Manufacturers Association.
The cement price was fixed at different rates in different emirates. In Abu Dhabi, cement will be priced at Dh250 per tonne, whereas in Dubai it will be sold at Dh240 per tonne. In the Northern Emirates, cement will be priced at Dh220 per tonne. Currently cement is priced between Dh220 and Dh225 in Dubai, while in the Northern Emirates it is being sold between Dh170 and Dh190
“The new price structure will come into effect from February 1. The decision was taken to protect the cement industry and ensure that a balance is maintained,” said an official
He added, “Factories are undergoing severe loss and companies have been selling their products really cheap in order to survive in the business. The association decided to fix the above mentioned prices keeping in mind a fair deal for both the manufacturers as well as consumers.”
“The current situation is not very pleasant. The UAE’s demand for cement is expected to drop further by 20 per cent in 2010. Last year, we witnessed sales of about 17.8 million tonnes. We are expecting the demand to drop to about 13.5 million tonnes in 2010. This being the case, the situation of cement factories is expected to become even more critical. With no new projects either in Dubai or the Northern Emirates, we have to protect the cement industry,” said the official.
The cement industry also continues to bear the brunt of high production costs and power shortages. “We have been working given these circumstances. We are expecting all factories who are part of the association to start implementing the new price structure from February 1,” the official said.
The decision cannot be imposed on the factories as it will have no legal binding.
By: Rashmi Kalia (ARI-C NEWS)
Source: www.uaecement.com