Cement prices in the UAE increased by some AED40 (US$10.9) a tonne to AED240/t at the beginning of May 2004.
The strong local demand for cement driven by the construction activity in the country and especially by Dubai’s booming construction sector is one of the main reasons for the rise in cement prices, said Salim Abdullah Salim, a local businessman and investor in the cement industry. The increase in the prices of raw materials used in the cement industry and the shipping prices also had an effect on the price of the material, Salim added.
The price of cement in the UAE was AED200 (US$54.4) a tonne in early April 2004, then fell to AED190/t and returned to the level of AED200 at the end of the month. The current increase is the third one since the beginning of 2004. The cement prices rose by some AED15/t in January 2004 and then increased further in mid-February 2004. The UAE cement industry mainly imports raw materials from East Asia and the Indian subcontinent.
