Displaying items by tag: Price

Russia: The Federal Technical Regulation and Metrology Agency (Rosstandart) has relaxed import rules for cement originating from outside the Eurasian Economic Union (EAEU). Under the new regulations the 28 day inspection period has been cut, according to InterFax. The Industry and Trade Ministry has taken the action to cope with a rise in cement consumption created by both government-backed infrastructure projects and domestic housing. It added that the Central Federal District experienced a shortage in the autumn of 2021 with associated price rises.

"We expect that the reduction of the procedure's duration may encourage importers of cement to increase the volume of its import into the country. And this, in turn, should in fact increase competition in the market and stabilise prices. This, I repeat, is the most important thing that needs to be achieved in the domestic building materials market for its balanced operation," said Deputy Industry and Trade Minister Viktor Yevtukhov.

Mexico: The net sales of Grupo Cementos Chihuahua (GCC) increased by 10.8% year-on-year in 2021 compared to 2020, according to its fourth quarter financial report. Its net sales for the year came to US$1.04bn, while operating profit rose by 14.2% to US$214.3m from US$211.3m a year earlier.

GCC said that its stronger result was due to both volumes increases and higher selling prices in the US and Mexico. In the US market, the company’s cement volumes increased by 5.6% in 2021, with a 5.1% rise in concrete sales. Prices in the US rose by 8.9% and 5.1% respectively. In Mexico, cement and ready-mix concrete volumes rose by 6.9% and 19.1% respectively. Overall sales increased by 17.9%.

Mexico: The average price of bagged grey cement has soared by an average of 14.5% so far in January 2022. Bulk cement prices have increased by 20% month-on-month since mid December 2021.

Locally-owned multinational producer Cemex said that, to maintain margins, it increased the price of its bagged cement by 14.4% nationwide and its bulk cement by 17 - 20%. "The increases applied to our products seek to recover part of the inflation that the company has had in its costs," the company explained in a press release.

Javier Fernández, director of the materials distributor Grupo Mecasa, which has a presence in Nuevo León, Coahuila, Tamaulipas and Veracruz, said that the rest of the country's cement companies also raised prices in a similar proportion to Cemex.

Japan: Sumitomo Osaka Cement says it plans to raise the price of its cement-related products by 20% in April 2022. It has blamed this on rising raw material, energy and logistics costs.

Burundi: The Ministry of Commerce, Industry and Tourism has asked the Burundi Cement Company (BUCECO) to hold a consultation with the government about price rises the company announced at the end of December 2021. It also requested that the cement producer suspend the change in prices, according to the Le Renouveau newspaper. In correspondence the ministry reminded the company that it had benefited from tax and customs breaks previously agreed with the government under the Burundian Investment Code.

Mexico: 200 police officers in 80 police cars arrived outside the gates of Cooperativa La Cruz Azul’s Cruz Azul cement plant in Tula, Hidalgo, on 15 December 2021, but failed to enter the plant. The El Financiero newspaper has reported that the police were following a court order to remove the company from the plant. Supervisory board president Alberto Lopez reasserted the company’s right to occupy the property in line with federal government ordinances. Lopez suggested an alleged collusion between cooperativists and Omar Fayad’s Institutional Revolutionary Party (PRI) Hidalgo state government to decieve the courts.

Authorities have frozen Cooperativa La Cruz Azul’s accounts with outstanding bills of US$800,000 in electricity, gas, equipment and services bills, as well as the payroll of its 1100 workers.

Coopertiva La Cruz Azul chair Federico Sarabia said that the developments threaten the existence of the Cruz Azul plant. He said "In terms of quality, Cruz Azul’s cement exceeds the standard. At the time that Cruz Azul disappears as a cement producer, prices will increase.”

Trinidad & Tobago: The government has reacted to a 15% rise in the price of cement by increasing imports and delaying an increase in taxes on the commodity. The country’s sole producer, Trinidad Cement (TCL), says that its price rise is set to start on 20 December 2021, according to the Trinidad Express newspaper. It has blamed this on mounting input costs such as gas, spare parts and other materials.

However, the Ministry of Trade and Industry (MTI) told the cement producer that it viewed any price rise as ‘unacceptable’ given that 90% of inputs to production were local. In response the government has doubled the quota for cement imports to 150,000t in 2022 with each individual importer receiving a 50% boost to their own quotas. It has also agreed with the Council for Trade and Economic Development (COTED) of the Caribbean Community (CARICOM) to suspend the Common External Tariff (CET) on hydraulic cement and a planned rise in the duty to 20% for one year to the end of 2022.

TCL’s competitor Rock Hard Cement, a cement importer, ended local operations in August 2021 after losing a court case against the country’s Ministry of Trade and Industry in July 2021.

India: Ratings agency Crisil has forecast 11 – 13% year-on-year growth of cement sales volumes in the 2021 financial year. The Press Trust of India has reported that the agency predicted that high demand and increased fuel costs would precipitate a rise in cement prices to record levels before April 2022.

In December 2021, petcoke prices rose by 80% year-on-year, while the price of imported coal had more than doubled. This has increased cement producers’ costs by 40%.

US: Australia-based Boral has agreed to sell its US fly ash business to Eco Material Technologies for US$755m. The parties expect to conclude the transaction by the start of 2023. The proceeds of the sale will add to Boral’s surplus capital.

Boral’s chief executive officer Zlatko Todorcevski said “Together with the sale of our North American building products business and our stake in Meridian Brick, we will have divested the North American businesses for more than US$3bn.” He added “This is a significant milestone that supports our strategy to refocus on our construction materials business in Australia.”

Philippines: The Philippines Department of Trade and Industry has enacted a temporary duty on some imports of cement from Vietnam. The Manila Times newspaper has reported that the measure will be in force until April 2022 and only apply to ‘dumped’ cement. Importers will pay a duty of between US$1.02/t and US$10.50/t on ordinary Portland cement and between US$1.16/t and US$12.80/t on blended cement.

The measure follows a probe carried out on the basis of a petition by domestic cement producers APO Cement, Holcim Philippines, Republic Cement and Solid Cement. The probe found that the domestic cement industry had suffered a loss of market share and declining domestic sales between July 2019 and December 2020.

Trade Secretary Ramon Lopez said "We do not anticipate that these duties will result in an increase in the retail price of cement, because its effect on landed cost is minimal.” He added “Any price increases in imported cement will be discouraged by competition from domestic cement producers. The provisional anti-dumping duties will be imposed only on specific Vietnamese exporters found to be dumping cement to the Philippines. Vietnamese exporters who are not dumping can continue to export cement without having to post the provisional anti-dumping cash bond.”