Firms urged not to hike cement prices
The UAE Contractors’ Association has called on cement producers in the country to withdraw their decision of increasing the minimum price of loose cement to AED 220 (US $60) per ton.
The UAE Contractors’ Association has called on cement producers in the country to withdraw their decision of increasing the minimum price of loose cement to AED 220 (US $60) per ton.
“We are against any increase in cement prices at present,” UAE Contractors’ Association vice-chairman Ahmed Al Mazroui told Emirates Business. “This increase is useless and local factories will not succeed in implementing it.”
He added that any increase in the prices of locallyproduced cement will lead to an increase in the demand for imported cement, which is sold at lower prices, reported Emirates Business.
Countering claims of domestic manufacturers that this increase was necessary to limit their losses, he said: “This is totally untrue. Increased prices are not a solution; it might, in fact, create further problems for local factories, because the prices of imported cement are logical and acceptable to contracting companies. Any increase in the demand for imported cement might lead to the market moving away from locally-produced cement, and then the problem will worsen for domestic producers.”
He added that the association was currently coordinating with the Ministry of Economy (MoE) to urgently find solutions to the problem.
