Construction Material Prices Plunge

ABU DHABI - The prices of construction material led by steel have plummeted 38 per cent in December due to slow activity in the construction sector, a report said on Saturday.

By Haseeb Haider

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Published: Sun 25 Jan 2009, 10:59 PM

Last updated: Sun 5 Apr 2015, 10:26 PM

According to the Abu Dhabi Statistics Centre, the prices recorded 10 to 38 per cent decline in five out of seven steel products that are integral part of the Abu Dhabi Construction Material Price Index.

The UAE-made steel bar 10-32mm, fell 38 per cent to Dh2,050 per metric tonne in December compared to Dh3,300 in November. The report further said 62 per cent of the building materials in the index had stable prices in December.

The Turkish steel bar dropped by 10 per cent while the price of Chinese binding wires fell by 20 per cent.

The report also said the UAE produced portland and white cement products recorded no change in prices.

Several domestic and international reasons were attributed to the falling raw material prices including increased use of the Chinese steel in the country, since the beginning of the fourth quarter of 2008.

The fall is also linked to the weakness in domestic demand with project slowing down and increase in the supplies of steel, prompting traders to respond to market conditions by reducing prices.

One more reason that triggered the fall was large inventories piled up by large contractors who bought huge quantities of steel in the third quarter of 2008, anticipating a price hike.


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