DOHA: The prices of two basic building materials, cement and steel which have been among the major drivers of higher inflation in the country have begun stabilising, signaling that the price rise may now remain under check.
The demand for cement remains a bit higher as compared to local production, but the prices have become stable at QR14 for a 50-kg bag.
The Qatar National Cement Company (QNCC), the larger of the two cement producers in the country is currently releasing as estimated 15,000 tonnes of cement in the local market per day.
The demand, according to market sources, remains marginally higher at around 18,000 to 19,000 tonnes daily.
The QNCC is importing the extra 3,000 to 4,000 tons mainly from India and Pakistan since cement-carrying ships are now easily available due to a sluggish freight market.
"There are no shortages of either cement or steel in the country now," a source from the building industry said.
Qatar Steel, the lone steel producer in the country which commands respect for its quality products regionally, has already brought the prices of its products down from a higher QR3,800 per ton to QR2,460 per ton.
Qatar Steel produces steel bars which find widespread use in the construction industry. It has stopped exports. The company has also stopped exporting pellets and is now using them to produce more steel to meet the local demand.
© The Peninsula 2008
