15 October 2009
Prices of Portland cement in Abu Dhabi have dropped by almost six per cent even as prices of white cement and gypsum increased significantly compared with the previous week.
According to the Statistics Centre Abu Dhabi (Scad) building material index, the cost of Portland cement dropped from Dh330 per tonne on October 6 to Dh310. However, cement factories and traders in the rest of the emirates told Emirates Business yesterday that materials are being sold at much lower rates.
"Today the price for bulk Portland Cement is in the range of Dh200-210," said Mustafa Gorgunel, General Manager at the Ras Al Khamah based Union Cement Norcem.
"It is the same with Sulphate Resisting Cement. It ranges between Dh210 to Dh220," he said.
The demand for cement and concrete has been declining and has failed to pick up after Ramadan as expected. "Demand is going down since April this year and continues to remain so," he added.
Another official from a cement manufacturing unit, who wished to remain unnamed, added that the situation would remain so unless work resumes on several stalled projects.
"We are expecting some new projects to be announced and hoping that the demand will pick up next year," said the official.
According to recent reports, cement consumption in the UAE would be down by almost 20 per cent in 2009. Readymix units in Dubai, however, said their sales have been affected by more than 50 per cent so far this year compared to 2008.
Additionally, cement factories, especially, in Sharjah and the Northern Emirates, have been affected by power shortages. "Power shortage is still a constraint," said Gorgunel.
Emirates Business had earlier reported that many production companies had to cut production for several hours during the day because of the suspension of electricity supply.
Meanwhile, cost of Al Ethad white cement in Abu Dhabi increased by 35 per cent and went up to Dh600 per tonne from Dh565 last week.
An official from RAK White Cement said the demand for the product has increased compared to previous year.
"Although demand for most products have fallen, we have witnessed an increase for white cement compared to last year.
The reason being that several projects using the product are up and running and nearing completion," said the official. "The exfactory price of white cement per tonne today [Wednesday] is Dh520."
According to Scad, the price of gypsum from Oman has shot up by 17 per cent from Dh425 per tonne to Dh442. However, prices of aggregates and sand have remained the same.
Aggregates in the UAE are priced between Dh57 to Dh70 per cubic metre while white sand is priced at Dh30 per cubic metre.
One official of Abu Dhabi based Gypsemna, told Emirates Business yesterday that an increase in transportation costs could be the only factor for the price rise of gypsum from Oman.
"Otherwise the prices here remain the same. Of late, we have even witnessed a drop in prices, mainly caused by lack of demand. Compared to the previous year, it has been a significant change," said the Gypsemma official.
Earlier this year, Gypsemna started production of gypsum board in its facility in Abu Dhabi.
With a current capacity of 54 million sq m of gypsum board per annum, it is one of Asia's largest producers of gypsum boards. "We import most of the raw materials used in the production and prices have not increased," he added.
Meanwhile, bitumen prices have increased by almost 18 per cent. The price of Bitumen 60/70 increased by Dh350 (18.91 per cent) to Dh2,200 from Dh1850 last week. Saudi Arabian bitumen (waterproofing and terraproofing) increased marginally by 4.5 per cent.
Scad index also witnessed a marginal drop in wood prices. The cost of Romanian white wood dropped by Dh42 per cubic metre going down to Dh1057 from Dh1100 last week.
White plywood from East Asia, especially Indonesia, dropped marginally by an average of around 1.5 per cent. The price of a sheet of 12mm moisture resistant marine plywood from Indonesia dropped by at least six per cent falling to Dh103 from Dh110.
Prices of Portland cement in Abu Dhabi have dropped by almost six per cent even as prices of white cement and gypsum increased significantly compared with the previous week.
According to the Statistics Centre Abu Dhabi (Scad) building material index, the cost of Portland cement dropped from Dh330 per tonne on October 6 to Dh310. However, cement factories and traders in the rest of the emirates told Emirates Business yesterday that materials are being sold at much lower rates.
"Today the price for bulk Portland Cement is in the range of Dh200-210," said Mustafa Gorgunel, General Manager at the Ras Al Khamah based Union Cement Norcem.
"It is the same with Sulphate Resisting Cement. It ranges between Dh210 to Dh220," he said.
The demand for cement and concrete has been declining and has failed to pick up after Ramadan as expected. "Demand is going down since April this year and continues to remain so," he added.
Another official from a cement manufacturing unit, who wished to remain unnamed, added that the situation would remain so unless work resumes on several stalled projects.
"We are expecting some new projects to be announced and hoping that the demand will pick up next year," said the official.
According to recent reports, cement consumption in the UAE would be down by almost 20 per cent in 2009. Readymix units in Dubai, however, said their sales have been affected by more than 50 per cent so far this year compared to 2008.
Additionally, cement factories, especially, in Sharjah and the Northern Emirates, have been affected by power shortages. "Power shortage is still a constraint," said Gorgunel.
Emirates Business had earlier reported that many production companies had to cut production for several hours during the day because of the suspension of electricity supply.
Meanwhile, cost of Al Ethad white cement in Abu Dhabi increased by 35 per cent and went up to Dh600 per tonne from Dh565 last week.
An official from RAK White Cement said the demand for the product has increased compared to previous year.
"Although demand for most products have fallen, we have witnessed an increase for white cement compared to last year.
The reason being that several projects using the product are up and running and nearing completion," said the official. "The exfactory price of white cement per tonne today [Wednesday] is Dh520."
According to Scad, the price of gypsum from Oman has shot up by 17 per cent from Dh425 per tonne to Dh442. However, prices of aggregates and sand have remained the same.
Aggregates in the UAE are priced between Dh57 to Dh70 per cubic metre while white sand is priced at Dh30 per cubic metre.
One official of Abu Dhabi based Gypsemna, told Emirates Business yesterday that an increase in transportation costs could be the only factor for the price rise of gypsum from Oman.
"Otherwise the prices here remain the same. Of late, we have even witnessed a drop in prices, mainly caused by lack of demand. Compared to the previous year, it has been a significant change," said the Gypsemma official.
Earlier this year, Gypsemna started production of gypsum board in its facility in Abu Dhabi.
With a current capacity of 54 million sq m of gypsum board per annum, it is one of Asia's largest producers of gypsum boards. "We import most of the raw materials used in the production and prices have not increased," he added.
Meanwhile, bitumen prices have increased by almost 18 per cent. The price of Bitumen 60/70 increased by Dh350 (18.91 per cent) to Dh2,200 from Dh1850 last week. Saudi Arabian bitumen (waterproofing and terraproofing) increased marginally by 4.5 per cent.
Scad index also witnessed a marginal drop in wood prices. The cost of Romanian white wood dropped by Dh42 per cubic metre going down to Dh1057 from Dh1100 last week.
White plywood from East Asia, especially Indonesia, dropped marginally by an average of around 1.5 per cent. The price of a sheet of 12mm moisture resistant marine plywood from Indonesia dropped by at least six per cent falling to Dh103 from Dh110.
By Joseph George
© Emirates Business 24/7 2009
