Cement prices to slow

Cement prices in the UAE are expected to slow from their “excessively exaggerated” levels as more capacity comes on stream through 2009.

Capacity is expected to touch almost 41 million tonnes which could result in an oversupply of the building material as new Greenfield plants are added, UAE daily Khaleej Times reported on Sunday, citing Dubai Chamber of Commerce statistics.

In 2007, UAE’s total cement production was estimated at 13.2 million tonnes while consumption reached 18.2 million tonnes, the newspaper said.

This gap in the market had been covered through imports which grew by more than 47% in 2007 to reach about $202.3 million in 2007, Khaleej Times said.

Despite the government's attempts in July 2007 to cap cement prices at $80.3 per tonne, the average price in Dubai increased by more than 50% by March 2008.

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