Trade Arabia reported that a decline in prices of building materials is likely to kick the UAE’s construction industry back into action later this year, after a 1Q marked by project delays.
Mr Riad Bsaibes COO at Amana Steel Buildings Contracting Company said that construction material costs have dropped and will now start stabilising because of the inventory in the system.
Mr Bsaibes said that the steel rebar price had reached 2003 levels.
He said that a lot of contractors have projects that have been delayed and so they will be keen to get work, even if it means cutting costs.
He added that "Now prices are hitting bottom because we’re beginning to see the inventory in the system and we’re eating through that inventory."
The reported underlined that the government recently re-instated the five per cent customs duty on cement and steel after removing it last March in an effort to support the massive boom in construction, facilitate supply and keep prices low.
Sourced from Trade Arabia