UAE cement demand booming

UAE cement demand booming
06 May 2004

The UAE industry is trying hard to fight the upsurge in demand with the production capacity working  at the optimum level. Demand for the cement in next few years is expected to surpass 10Mt.

Shyam A. Bhatia, Managing Director, Alam Traders, said: "Current  production capacity in UAE is approximately 8Mt, out of which 5Mtis used in domestic and approximately 3Mt  was earmarked for exports, this was the situation till 2002. However the scenario has now changed drastically and it can be estimated that domestic demand itself will  surpass 10Mt in  a couple of years. The situation could also easily lead to cement shortage in market which could give gateway to cement imports in the country."

Further Bhatia, said: "The upsurge in demand for cement  will create room for plenty in the market, hence the domestic manufacturers would remain unaffected with  imports of cement.  However the market  will swing  with high demand trends with growing activities in construction sector."

K.K. Badruddin, marketing manager, Fuijarah Cement Industries, said: "It is a fact that the demand for cement in the local market has drastically increased in the recent past due to many prestigious projects being undertaken in Dubai and other emirates.

In fact, most of the factories have cut short their exports in order to meet the full requirement of local market. While it is true that cement prices have increased by about 25% over the last year, the factories, however, are not making hefty profits like other sectors in the UAE.

Published under Cement News