Cement prices in the UAE are set to decrease by five to 10 per cent following the drop in the price of diesel and a reduction in consumption, according to some industry sources.
Steel prices have fallen to Dh3,800 per tonne and are expected to drop by a further Dh200 over the next 10 days. And industry experts believe these reductions, coupled with the drop in international oil prices, could lead to a reduction in the overall cost of construction.
A tonne of cement now costs between Dh400 and Dh435 in Dubai compared with Dh450 to Dh470 few months ago. Some factories in Ras al Khaimah were yesterday offering cement at between Dh375 and Dh380.
Shyam Kumar, General Manager of Dubai-based Quality Ready Mix Industry, told Emirates Business that the main reason for the upward movement of cement earlier this year was an acute shortage coupled with excessive demand.
"This was followed by an increase in the price of diesel but today the situation has improved, there are no more shortages. Even if prices don’t go down from now on and remain steady it is good news for the industry."
Magdi Shoukri Kestandi, Sales Manager at Bin Lahej Cement Products, was optimistic that prices would drop by at least 10 per cent.
"In fact they have already started to fall," he said. "Today cement can be imported for just Dh375."
He said prices started sliding two weeks ago at the start of Ramadan.