UAE prices continue to vary despite MoE advisory

UAE prices continue to vary despite MoE advisory
Published: 22 February 2010

Factories in the UAE are continuing to sell cement at varying prices despite a move by the government against raising the minimum price, Emirates Business reveals.

Last week, cement manufacturers in the UAE were advised by the Ministry of Economy not to increase the minimum price of loose cement.

Following the announcement, the UAE Contractors’ Association had called on cement producers in the country to withdraw their earlier decision of increasing the minimum price of loose cement to Dh220 per tonne.

In January, the UAE Cement Manufacturers’ Association had agreed to set the price at Dh250 per tonne in Abu Dhabi, Dh240 in Dubai and Dh220 in the Northern Emirates, from February 1.

Emirates Business called various factories in different emirates over the past week and found that cement was being sold for as low as Dh195.

A call to the Dubai office of the Abu Dhabi-listed Arkan Building revealed the company was buying cement at around Dh195-200 per tonne, depending on the type of cement.

Sharjah Cement Factory said it was selling cement at Dh230 per tonne, while a sales agent from Jebel Ali Cement in Dubai confirmed that they were selling cement at Dh235 per tonne, without transport.

Readymix companies confirmed that they were purchasing cement between Dh220-245 per tonne. Al Azani Ready Mix Company said it was purchasing cement at various prices, averaging Dh230 per tonne, while Ready Mix Gulf said it was buying a tonne of cement for Dh245.