Prices of Cement, Concrete and Wood drop in July


Statistics Centre-Abu Dhabi (SCAD) issued its monthly bulletin on the prices of building materials for the month of July. The bulletin is yet another aspect of the Center’s active contribution towards the developmental vision of the emirate of Abu Dhabi to further provide reliable and accurate statistics intended mainly to enhance the awareness of the business community and the public about the movement of prices of building materials in the emirate, which considered to be one of the most critical economic indicators that reflect the progress of the urban development and the sustained growth experienced by the Emirate of Abu Dhabi.

In this connection, Statistics Center- Abu Dhabi releases the Building Materials Bulletin on a monthly basis. However, It is used primarily in computing indexes for the construction activity and in the calculation of the GDP. This bulletin covers 164 items, the prices of which are continually collected from 39 sources through field visits by SCAD’s specialized teams, using a special form, designed by an group of expert statisticians in conformity with the highest international standards in order to facilitate the work of statistical researchers in the collection, compilation and verification of statistical data according to the latest scientific methodologies, to ensure data consistency and validity.

This monthly bulletin also helps in providing monthly and annual averages of construction materials’ prices to serve decision makers as well as various statistical data users, ranging from governmental agencies into private companies as well as the overall business community at large.

The bulletin shows a 1.74% drop in the average price of cement in July, compared with last June, as a result of the decline in the price of Itihad sulphate resistant cement by a 0.71% to an average of AED 350, down from AED 352.2 in June 2009. Itihad Portland cement declined by 3.87% as well as Itihad white cement declined by 0.55%, against their average prices in June 2009. Meanwhile, the price of lime gypsum (Oman) shrank by 5.30% below its average price of AED 1320 in June to an average of AED 1250 in July 2009.

The prices of aggregates and sand were generally stable in July, compared to their levels in June and the past three months. Concrete prices fell by 5.45% during July, compared with last June prices, with the price of standard ready mix concrete falling by 6.0% to an average of AED 352.5, down from AED 375 back in June, while the price of phosphate resistant concrete dipped by 4.9% from an average of AED 382.50 to AED 363.75 over the same period of time.

According to the release, the prices of construction steel edged up by 1.72% during July compared to last June 2009. The rise reflects the combined effect of the average price increase, as for example the prices of flat steel (Turkey) rose up by 0.28%, from an average of AED 2243.75 in June to an average price of AED 2250 in July 2009, as well flat steel (Dubai) rose up by 2.51%, beam steel-large (Korea) by 5.44%, beam steel-small Korean by 7.07%, Japanese by 3.92% and 7.07% for the Ukrainian. Likewise, the average price of the various types of angled steel went up by 2.56%, while the price of 6-8 mm Turkish steel bars rose 2.63%, 10-32 mm Qatar and UAE steel bars by 1.23% and 0.69%, respectively. On the other hand, the average price of Japanese large beam steel slipped by 0.53%, Qatari high tensile steel slipped by 2.09%, and Turkish 10-32 mm steel bars by 5.67% compared to June 2009 prices. The bulletin shows a drop of 2.1% in the price of BRC mesh in July against its June 2009 level.

SCAD’s bulletin also revealed a 0.06% fall in the prices of wood during July, compared with last June 2009, due to the decline in the average price per sheet of large Malaysian Merionti red timber by 3.85% from an average of AED 75.8 in June 2009 to an average of AED 72.8 in July, while the price of the same type of wood (small) dropped by 6.86%, Indonesia red teak faced plywood 3x7x3.6 and 4x8x3.6 mm/ sheets fell by 6.41% and 1.59%, respectively. On the other hand, the average price per cubic meter of Chilean and Romanian white wood surged 4.79% and 4.71%, respectively. An upward trend was also observed in regard to the prices of various types of white plywood, which topped their June levels by (0.38-1.43) %.
The average price of concrete blocks, hollow hourdis and clay tiles have been generally stable throughout the months June and July 2009, as have the average prices of the rest of building materials.

Finally SCAD’s bulletin asserted that the building materials market is remarkably stable, attesting to the soundness of the national economy and its capacity to cope with the changes of the global financial crisis and create new investment opportunities in the various economical sectors and business activities.


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