Sulja Bros. Building Supplies, Ltd (SLJB)

[CaesarStone]

Cement shortage hits construction sector
Posted: Monday, October 09, 2006

Dubai

The Middle East construction industry is facing severe shortage of cement, according to a report released by the Dubai Chamber of Commerce and Industry (DCCI).

Cement production totalled 122 million tonnes in 2005, while consumption was estimated at 128 million tones, said a report in the Gulf News quoting from the DCCI statement.

The region is facing a deficit of six million tonnes and this has resulted in an increase in the price by 10 per cent.

Apart from cement, steel prices, especially those for hot rolled plates, jumped by 45.2 per cent in August, according to the report.

'Dubai is affected by the situation in the Middle East and the world. Due to high consumption in the local market, steel prices increased even more sharply,' the report noted.

'Steel production in the region increased by 12 per cent in 2005, from 14.2 million metric tonnes in 2004, while on the other hand consumption increased by 37 per cent in 2005 from, 25.3 million tonnes in 2004.'

World steel production was affected by high prices for iron ore, which increased by 71.5 per cent in 2005. The product on the world market had an excess supply of 119 million metric tonnes in 2005, and from the supply-demand point of view this should stabilise prices.

In contrast prices have increased. For example, the price of hot rolled plates increased by 13.6 per cent from December 2005 to August 2006, the report added.