Released on: September 26, 2008, 7:01 am
Press Release Author: KJE Trading Group
Press Release Summary: Cement Central announced today that in an aggressive move to combat the ever increasing cost of cement to Dubai, it has partnered with its current suppliers to offer cement starting as low as US$60MT, a major offset from the current price of US$90MT which seems to have become the norm.
Press Release Body: Cement Central announced today that in an aggressive move to combat the ever increasing cost of cement to Dubai, it has partnered with its current suppliers to offer cement starting as low as US$60MT, a major offset from the current price of US$90MT which seems to have become the norm.
From the Middle East to Russia, the cement industry is witnessing global robust growth amid a massive international construction boom. Cement & concrete companies are facing bigger challenges and higher demand by the day with companies continuing to invest in increasing capacity and sustainable technology.
With countries like Egypt & India suspending their cement exports the increasing demand is outpacing the supply from the UAE to Qatar to East Africa. In a region where $1.7 trillion worth of real estate is being constructed or being planned, price trends in the cement industry take on heightened significance.
The bad news for local property developers and contractors is that the price of cement in Dubai is constantly increasing according to figures published by Emirates Industrial Bank. This year alone, bills for bulk cement shot up by around 20 per cent - reaching more than Dh330 per tonne earlier this month, say cement buyers. While cement factories enjoy profitable times - some say they are taking advantage of high demand - the trend is putting strain on the construction industry.
Carlos Perez said “Even government projects are being affected” and quoted, Ebrahim Al Shehhi, director, UAE Ministry of Public Works as saying "As a ministry we are tendering two or three times for a project. Contractors are not coming forward because they don't know what the price of steel, cement and electrical cable will be the next day."
"A number of mega projects in infrastructure, tourism and real estate are currently in various stages -- from designing, tendering to construction -- and the same trend is likely to continue in the coming years and it will create regular demand for cement in the country," said Carlos Perez, Managing Director of Cement Central. The massive scope of these projects and the fast pace of expansion is giving rise to high demand for various building and construction materials, especially cement. As local cement producers are unable to keep up with demand, more and more cement is being imported from other countries. This is where companies like Cement Central can aid with cement importing needs.
Cement imports have soared during the past three years as a result of the unprecedented construction activities here that accompanied the overall economic boom in the UAE and the region. The sharp increase in oil prices is a major reason for this boom.
A Cement Central client was quoted as saying “the shortage in cement had already caused an increase in operating costs, which had forced most companies to increase prices of concrete by an extra Dh40 per cubic metre and it was difficult to increase prices where contracts with clients exist, and that in such situations, ready-mix companies are taking on all the losses.” Being aware of the crisis facing contractors and builders in Dubai, Cement Central and its suppliers felt the need to step in and offer cement at competitive prices that wouldn’t break their budgets.
though we distribute globally, our immediate focus is on emerging Middle Eastern
and European markets” says Carlos Perez. We currently
have a 60 million MT allocation geared towards helping the ever growing expansion
in Dubai. Cement Central provides up to date pricing and procedures
on its website www.CementCentral.com
and welcomes broker inquiries. Our supplier’s contract will reflect their
firm intent and ability to do business. We deal directly with large allocation
holders and as a result, we pass along our competitive advantage and savings
to you! Our clients and suppliers span the globe from the Americas to Europe
and Asia and our extensive product and marketing knowledge make us the obvious
Web Site: http://www.cementcentral.com
Details: Carlos Perez
U.K. +44 20-3286-7252