Cement prices in the United Arab Emirates (UAE) are expected to drop from over US$6.8 per bag to as low as US$4.6-3 dollars following a settlement made by the UAE Contractors Association with local cement producers, English newspaper Gulf News reported.
According to the settlement, the cement factories have to supply contractors with their needs of cement and save them from having to resort to the black market or middlemen to procure supplies.
The expected drop is an outcome of three-month negotiations between the association and the major local cement producing companies, the paper said.
Humaid Salem, manager of the association, stated that the association will hold a meeting with the producers of readymade concrete and cement this month in a bid to bring down prices of these building materials to their previous levels.
The meeting will also discuss unifying cement producers with the association to prevent similar increases in cement prices in the future.
Cement prices recently reached excessive levels, causing project managers to seek a quick redressal of the grievances.