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Cement shortage hits construction sector
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.
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