Displaying items by tag: Price

Paraguay: Industria Nacional del Cemento (INC) says that it will not increase its cement prices despite the high cost of petcoke. The state-owned producer reports that both increasing international prices for the fuel and logistical challenges, such as varying river water levels, have raised overall prices. It added that stopping production would cause negative impacts to both the construction sector and the local economy.

Mozambique: Adil Cement, África Cement Factory, Maputo Cement, National Cement, Limak Cement Factory, Royal Cement and Suneira Cement Fonte have written a letter to the Ministry of Industry and Commerce complaining about ‘unfair’ pricing by Dugongo Cement. They allege that the pricing of their Chinese-backed rival breaks local competition law and has caused harm to their businesses, according to Moçambique Media Online. The price of cement has reportedly dropped by as much as 70% since Dugongo Cement’s new plant opened in May 2021.

Hungary: The government has imposed a 90% tax on the excess profits of some building materials producers to prevent rising prices. It applies to companies that produce cement, lime, gypsum, chalk, gravel, sand and clay that had an annual revenue over Euro8.4m in 2019, according to the MTI news agency. Producers will be liable for a 90% ‘mining allowance’ on the difference between revenue generated using their own prices and threshold prices set in the decree. The threshold price for cement has been set at Euro56/t.

The government has also ordered that companies report the export of ‘strategic’ construction materials including cement, gypsum wallboard, gravel and steel products. The related decree also gives the state pre-emption rights for the materials that have been reported at a price "in line with their current market value." Failure to comply with the reporting obligation may result in seizure of the construction materials and fines up to Euro14,000.

Nigeria: BUA Cement has increased the ex-factory price of its cement by 7%. It previously claimed that it did not intend to increase its prices, according to the Sun newspaper. In statements issued between April and June 2021 it said, “the company had no plans to increase prices of its cement now or in the near future.”

In April 2021 Dangote Cement was forced to publicly defend the price of its cement due to allegations that its prices were allegedly lower in Ghana or Zambia. Around the same time the Senate of Nigeria called for the federal government to introduce policies, such as tax breaks, to encourage local investments in cement production and to reduce prices.

At its annual general meeting in July 2021, BUA Cement issued dividends worth US$170m to its shareholders. The company reported sales of US$509m in 2020, a rise of 20% year-on-year. However, its costs increased by 22% to US$277m at the same time.

Kazakhstan: Steppe Cement sold 841,000t of cement in the first half of 2021, up by 10% year-on-year from 765,000t in the first half of 2020. Revenues in the period were US$38.8m, up by 22% to from US$31.9m. Average cement delivery prices increased by 11% in the reporting period.

India: The Kerala state government aims to establish 25% state ownership of the cement industry locally. The New Indian Express newspaper has reported that the policy aims to control rising cement prices. The government said that state-owned Malabar Cements and Travancore Cements will increase their cement production. The former has already lowered its cement prices, according to the administration.

Cameroon: Luc Magloire, the Minister of Commerce, has written to Cimenteries du Cameroun (CIMENCAM) threatening to close its production facilities if it raises its prices without approval. In the letter the minister accused the subsidiary of LafargeHolcim of increasing its wholesale prices and of preparing to do so again without consent, according to the Ecofin Agency. Prices have reportedly risen by up to 8% in some places.

Friction occurred between the government and CIMENCAM in 2020 when LafargeHolcim renewed the term of Benoît Galichet as the chief executive officer of its local subsidiary. The government, a large minority shareholder of the company, opposed the decision. The government and the cement producer have also disagreed previously over the price of cement.

Bolivia: Fábrica Nacional de Cemento (FANCESA) has agreed to open up where it sells its cement. Previously the producer mostly sold its products through authorised vendors, according to the Correo del Sur newspaper. New vendors will be subject certain conditions under the new marketing policy, including making a request to the cement producer. However, the company has not decided whether it will change its prices. Shareholders of the company have requested a market study to assess the situation. FANCESA is expecting demand for cement to drop by up to a quarter in 2021.

Jordan: The country’s industrial chambers have made a statement saying that most cement plants are charging ‘average’ prices for cement despite recent rises in energy costs due to imported coal and diesel. In a joint statement the group’s said, that although some plants have increased the price of cement, it does not reflect the increase in real cost to producers, according to the Jordan News Agency. The price of cement has reportedly risen by 12% recently.

The industrial chambers noted that the sector is, “keen to stabilise commodity prices locally and maintain their sustainability." It added that it accomplished this in the interests of citizens during the Covid-19 crisis despite the high price of raw materials. The statement also noted that the country has a cement production capacity of 10Mt/yr but the local market only uses 3Mt/yr.

Fiji: The Fijian Competition and Consumer Commission has issued a price control order for cement with effect from 22 June 2021. It applies to the ex-factory, wholesale and retail supply of cement products in all qualities, quantities, grades and classes, according to the Fiji Times newspaper.