02 April 2009
Cement companies in the UAE yesterday continued to sell stocks at the old rate of Dh330 to Dh350 per tonne.
Earlier this week, the UAE Ministry of Economy had announced a new price cap for cement, fixing the price of a tonne of bulk cement at Dh280 and a cement bag at Dh14.
Meanwhile, senior officials from various factories along with Abdullah Mohammed Al Sayah, President of cement factories and Producers Group and General Manager of Etihad (Union) Cement yesterday concluded a meeting with officials from the Ministry of Economy.
However, Al Sayah refused to comment about the proceedings of the meeting. "Representatives from various companies met the ministry officials. At this point of time, we have nothing to say," he said. He also did not elaborate if the new price structure had come into effect from April 1.
Sources yesterday said the meeting remained inconclusive with cement companies expressing their reservations about the new prices. "Given the present situation - with so many projects delayed or cancelled, cement companies are experiencing very difficult times. You cannot expect us to further reduce prices and go on a loss," said one official.
"Moreover there are discussions in Saudi Arabia towards lifting the ban on exports. Such a decision would be a severe blow to local companies and it could even affect the survival of many companies," he added.
Saudi cement companies have been urging the government to remove the export ban, which was imposed by the government last July to keep the cement prices in the Kingdom low.
However, reports indicate that restrictions on cement export could be lifted soon in the face of increasing production capacity and falling domestic demand.
On March 31, Al Sayah had said the discussion with the Ministry of Economy would be based on various issues including the impact of the current economic situation on the construction industry and the cement factories.
"The industry is going through tough times as construction has been severely affected as a result of the liquidity crunch, " he said.
Meanwhile, a sales official from Sharjah Cement yesterday said no decision had been communicated from the higher management about the change in the price structure. "As of now, we are still selling at around Dh330 to Dh350, based on the payment option," said the official. This rate is similar to the price structure of various other factories including National Cement, RAK cement and Gulf Cement.
Cement companies in the UAE yesterday continued to sell stocks at the old rate of Dh330 to Dh350 per tonne.
Earlier this week, the UAE Ministry of Economy had announced a new price cap for cement, fixing the price of a tonne of bulk cement at Dh280 and a cement bag at Dh14.
Meanwhile, senior officials from various factories along with Abdullah Mohammed Al Sayah, President of cement factories and Producers Group and General Manager of Etihad (Union) Cement yesterday concluded a meeting with officials from the Ministry of Economy.
However, Al Sayah refused to comment about the proceedings of the meeting. "Representatives from various companies met the ministry officials. At this point of time, we have nothing to say," he said. He also did not elaborate if the new price structure had come into effect from April 1.
Sources yesterday said the meeting remained inconclusive with cement companies expressing their reservations about the new prices. "Given the present situation - with so many projects delayed or cancelled, cement companies are experiencing very difficult times. You cannot expect us to further reduce prices and go on a loss," said one official.
"Moreover there are discussions in Saudi Arabia towards lifting the ban on exports. Such a decision would be a severe blow to local companies and it could even affect the survival of many companies," he added.
Saudi cement companies have been urging the government to remove the export ban, which was imposed by the government last July to keep the cement prices in the Kingdom low.
However, reports indicate that restrictions on cement export could be lifted soon in the face of increasing production capacity and falling domestic demand.
On March 31, Al Sayah had said the discussion with the Ministry of Economy would be based on various issues including the impact of the current economic situation on the construction industry and the cement factories.
"The industry is going through tough times as construction has been severely affected as a result of the liquidity crunch, " he said.
Meanwhile, a sales official from Sharjah Cement yesterday said no decision had been communicated from the higher management about the change in the price structure. "As of now, we are still selling at around Dh330 to Dh350, based on the payment option," said the official. This rate is similar to the price structure of various other factories including National Cement, RAK cement and Gulf Cement.
By Joseph George
© Emirates Business 24/7 2009
