Displaying items by tag: Price

Iraq: The Cement Producers Association in Iraq (CPAI) has complained about a government decision to reduce subsidises on fuel for the industry. It has warned that the cut could risk plants closing and cement prices rising, according to the Agence France Presse. The Ministry of Oil raised the price of fuel sold to cement manufactures to US$0.17/l in September 2021 from US$0.10/l litre previously. This followed a rise earlier in 2021. CPAI has warned of ‘enormous losses’ in the sector and has lobbied the government to reverse the decision. It added that producers would have to decide whether to stop production and lay off workers or raises cement prices by at least US$10/t. The subsidised fuel price for cement manufacturers was originally approved in exchange for an agreement to cap the price of cement.

Cameroon: A delegation of LafargeHolcim Maroc Afrique representatives has met Minister of Commerce Luc-Magloire Mbarga Atangana to ask him to raise the legally enacted price of cement. The company says that its subsidiary Cimencam’s costs have risen by US$3.58 – 5.37m due to increased clinker prices. This has reportedly resulted in increased costs per bag of US$2.15.

Mbarga Atanga told the World Trade Organisation that clinker prices doubled and gypsum prices rose by 60%year-on-year in the first half of 2021. The Ministry of Commerce previously raised cement prices in 2011.

India: Cement companies produced 82Mt of cement in the three-month period ending on 30 June 2021, the first quarter of the 2022 financial year, corresponding to growth of 54% year-on-year. Production in the quarter declined by 12% quarter-on-quarter, due to the proliferation of new state Covid-19 lockdowns from April 2021 onwards. The Hitavada newspaper has reported that ratings agency ICRA forecast that full-year production will rise by 12% in the 2022 financial year, on account of pent-up demand, growing rural housing demand and a pick-up in infrastructure activity. It nonetheless estimated that production will remain 2% below pre-Covid-19 outbreak 2020 financial year levels, with continuing high costs due to rising fuel prices. In the first quarter of the 2022 financial year, coal prices more than doubled and petcoke prices rose by 98% year-on-year.

Turkey: 120,000 members of the Construction Contractors Confederation (IMKON) downed tools on 9 September 2021 in protest against high cement prices. Emerging Market Watch News has reported that the strike will last until 21 September 2021 or until ‘satisfactory developments.’

The Ministry of Trade has tightened procedural restrictions on exporting clinker. Trade Minister Mehmet Mus is in talks with construction and cement industry representatives.

India: The state government of Tamil Nadu has announced the launch of a new cement, called Valimai, by one of its subsidiary cement producers. The United News of India agency has reported that the government anticipates a drop in cement prices as a result of the launch. It is currently targeting a total cement capacity of 19Mt/yr with the establishment of a planned 10Mt/yr plant.

On mid-June 2021, the state government asked cement producers operating locally to lower their prices.

Turkey: Builders have declared a one-day ‘strike’ on 2 September 2021 to protest against high cement prices. The Turkish Builders Confederation (IMKON) told the government that, though the prices of all commodities rose following the onset of the Covid-19 pandemic, the cement price rise is disproportionate, according to the Dünya newspaper. Producers responded that they have recorded sharp increases in input prices. Electricity costs rose by 64% year-on-year in July 2021, while coal costs more than doubled over the same period.

Pakistan: The Association of Builders and Developers (ABAD) has asked the government to appoint a commission to investigate rises in cement prices. The Pakistan Observer newspaper has reported that ABAD chair Fayyaz Ilyas alleged that producers had colluded as a cartel. He said that price rises have prevented the construction sector from being able to realise the aims of the Naya Pakistan housing scheme.

Pakistan: The All Pakistan Cement Manufacturers Association (APCMA) has received a request from the Pakistan government to lower cement prices. The International News newspaper has reported that Finance and Revenue Minister Shaukat Tarin spoke with APCMA representatives about trends in cement pricing in the three years prior to August 2021 and the importance of cement in stimulating economic growth. Tarin encouraged the establishment of a consultative session between the association and relevant stakeholders, with the task of proposing a sustainable pricing mechanism.

Vietnam: SSI Securities says that the local cement sector faces a ‘huge’ risk due to its over-dependence on export markets, particularly its reliance on China. The securities company reports that cement shipments have risen due to China’s current investment policies on limiting the output of its own cement plants and increasing imports from foreign countries, according to the Viet Nam News newspaper. China was the largest buyer of Vietnamese cement from 2017 to 2019. In 2020 China scooped up 57% of Vietnam’s combined cement and clinker exports. This represented 22% of the country’s total sales.

However, SSI Securities has warned that exports to China are unlikely to grow as demand stabilises. It expects a fall of 20 – 25% in the short to medium term as China stops its infrastructure stimulus packages. The brokerage company also noted that the sector’s second biggest export destination, the Philippines, has accused Vietnam of dumping cement.

Ghana: George Dawson-Amoah, the executive secretary of the Chamber of Cement Manufacturers Ghana, has warned that mounting clinker costs are negatively affecting the cement industry. He said that the cost of clinker grew by 55% in the first half of 2021 and it is expected to nearly double, according to GhanaWeb. Cement prices have risen subsequently. Dawson-Amoah added that congestion at local ports is also adding to clinker import costs as importers potentially face demurrage fines.