UAE moves to ensure cement price stability

UAE moves to ensure cement price stability
Published: 18 June 2007

Cement manufacturers and producers have responded positively to a call by the Ministry of Economy (MoE) directing them not to increase prices and maintain price stability in the local market.

This was announced during a meeting held on June 14, and included representatives from the Ministry of Economy, UAE Contractors Association (UCA) and cement manufacturers and producers.

Cement producers will commit to the fixed price of Dh295 per tonne of cement, and Dh17 per bag of 50 kg.

The meeting discussed hurdles faced by cement factories, the recent rise in cement prices and its impact on both producers and consumers as well as on the economic and construction boom witnessed by the UAE.

The MoE agreed with cement factories and companies that cement producers would maintain the stability of prices in the local market and would not increase their prices in the next period, especially in summer, when working hours are reduced and demand for cement rises.

The meeting rejected the allegation that cement producers sought to reduce production intentionally so that prices rise, after cement manufacturers proved that their production capacity was still the same.

Production to rise
Cement production, however, is expected to rise due to huge expansions carried out by cement factories and companies, which will eventually increase production lines and cement output in the local market.

The MoE will commission a study on obstacles and difficulties faced by cement factories and submit it to relevant authorities for remedial measures.

The MoE will coordinate with the Standardisations and Measurements Authority to tighten its regulatory role with regard to cement specifications and take proper measures against violators.