Cement price to rise from February 1
Cement prices in the UAE are set to increase from February 1 following a decision by the UAE Cement Manufacturers Association.
A senior industry official yesterday told Emirates Business that the association recently decided to fix the price of cement in different emirates.
In Abu Dhabi, which is less affected by the slowdown in the construction sector, cement will be priced at Dh250 per tonne, whereas in Dubai, it will be sold at Dh240 per tonne.
In the Northern Emirates, where most of the factories are located, cement will be priced at Dh220 per tonne.
In April 2009, cement factories in the UAE were reluctant to reduce the price after the Ministry of Economy had fixed rates across the UAE at Dh280 per tonne and Dh14 for a bag.
The decision to revise the price was taken with the conditions prevailing at that time, when factories were selling cement between Dh300 and Dh310 per tonne and bags at Dh15.
“Starting from February 1, the new price structure will come into effect. The decision was taken to protect the cement industry and ensure a balance is maintained,” said the official.
Currently cement is priced around Dh220 to Dh225 in Dubai while in the Northern Emirates, it is being sold at Dh170 to Dh190. “Factories are undergoing severe loss and companies have been selling their products really cheap in order to survive in the business,” said the official. “The association decided to fix the prices keeping in mind a fair deal for both the manufacturers as well as consumers.”
Another official said the demand for cement has been going down and has slid further this year compared to 2009.
Keep up with the latest business news from the region with the Emirates Business 24|7 daily newsletter. To subscribe to the newsletter, please click here.
Follow Emirates 24|7 on Google News.