Cement production in the UAE is seen to increase by some 2.5 million tonnes by end-2004, industry sources have said.
The increase is expected to result from the addition of new mills to some cement plants and the reopening of one of the local plants which were closed for maintenance and renovation. The increased production capacity will meet part of the high local demand and will help stabilise the prices. Imports, however, are still necessary, the sources added.
Cement prices in the UAE are expected to stabilise following the agreement between the UAE Contractors’ Association and some local cement manufacturers to lower cement prices. The agreement provides for a decrease in the prices from some AED25 (US$6.8) a bag to between AED11 (US$2.99) and AED17 (US$4.62) a bag.
The strong local demand for cement in the UAE is driven by the construction activity in the country and is stated as one of the main reasons for the rise in cement prices.