Displaying items by tag: Price
The India Cements (ICL) slips into red
08 November 2013India: Continued oversupply coupled with low prices pushed The India Cements Ltd (ICL) into the red in the second quarter of 2013. The South India-based cement company said that it had incurred a net loss of US$3.6m for the quarter ending 30 September 2013, compared with a net profit of US$7.8m during the same quarter in 2012. Weak demand for cement resulted in mounting pressure on cement selling prices.
Fijian commission approves cement price rise
07 November 2013Fiji: The Fiji Commerce Commission has approved a 2.7% increase in the wholesale price of bagged and bulk cement effective from 1 November 2013. Commission chairman Dr Mahendra Reddy said the prices were determined following factors raised in a detailed analysis of the submission from Fiji's sole cement producer, Fiji Industries Limited (FIL) and an independent investigation and analysis.
"Those factors included an increase in the price of raw materials (clinker and slag) from previous years because of the strong US currency, an increase in production labour rate by 4% based on union log of claim and an increase in capital expenditure to maintain the mill efficiency in the financial year 2013," said Reddy.
Commission studies hiked cement prices
06 November 2013Zambia: The Competition and Consumer Protection Commission (CCPC) of Zambia has started a study to investigate cement price rises in South Africa, Botswana, Tanzania and Zambia. The four sub-Saharan countries were chosen by the CCPC as a case study because they had similar companies producing and selling cement locally according to CCPC public relations officer Hanford Chaaba.
"We have been monitoring this situation concerning price changes for quite some time now and a study has been focused on these countries because the same producers of cement in Zambia have established factories in South Africa, Tanzania and Botswana," said Chaaba. He added that a similar study is also being conducted for the sugar and poultry industries.
Indian realtors' body claims there is a cement cartel in India
25 September 2013India: The Indian Realtors' body CREDAI has said that cement prices across India had gone up by US$0.95-1.12/bag in the week to 23 September 2013 and that it was considering an approach to the fair trade regulator Competition Commission of India (CCI) alleging a cartel between the cement producers.
CREDAI chairman Lalit Kumar Jain said that cement prices in Pune had risen by 31% in just a week. "Considering that buyer sentiment is currently low, the cement price rise defies logic," he said. "We feel that there is a cartel. We are currently taking legal advice."
Austrian cement industry hit by pressure on prices
19 June 2013Austria: Price pressure is becoming an ever-greater problem for the cement industry in Austria, according to the head of an industry group.
"In 2012 the volume of sales remained the same, but revenues dropped substantially", the chairman of the management of the Association of Austrian Cement Industry (VÖZ), Rudolf Zrost, said on Tuesday.
Cement sales in 2012 remained almost unchanged at 4.46Mt, compared to 4.43Mt in 2011. However, revenues slumped by 4.7% to Euro375m.
Turkish authority probes price setting behaviour
12 June 2013Turkey: Turkey's Competition Authority said on 11 June 2013 that it had launched a probe into the local cement producers Çimsa Çimento and Oyak Adana Çimento on allegations of price setting.
The authority said that data gathered during a preliminary inquiry was sufficient to open an investigation into whether or not the two companies had violated competition regulations by setting prices for white cement.
Philippines: The Department of Trade and Industry (DTI) has asked cement producers in the Philippines to justify recent price hikes that led prices to exceed the suggested levels set by the agency.
Trade Undersecretary Zenaida C Maglaya said the three largest cement firms in the country - Holcim Philippines, Lafarge Republic, Cemex Philippines - have started submitting documents to support adjustments in their prices. Eagle Cement is set to meet with DTI and Board of Investment (BOI) officials to explain its pricing scheme. Maglaya said one of the large cement manufacturers had made a submission but had yet to complete all requested data due to 'antitrust issues', referring to laws addressing anti-competitive behavior among corporations.
In April 2013, Maglaya said that cement companies had increased their prices due to the higher cost of coal, a raw material that accounted for about 25% of the cement industry's manufacturing costs. Holcim reportedly raised its price by 11%, Lafarge by 7%, Cemex by 15% and Eagle Cement by 5%.
In 2012, the Cement Manufacturers' Association of the Philippines (Cemap) reported record-high sales of 18.4Mt, up by 17.5% from 15.6Mt in 2011. This was due to the boom in public and private construction projects. In the fourth quarter of 2012, 4.4Mt of cement were sold compared to 4Mt in the fourth quarter of 2011.
UK: The Competition Commission has provisionally found that the UK's three major cement producers are failing to compete on price.
The UK regulator said there were serious problems in the way that the cement market operates in the UK, with customers facing higher prices because the producers know too much about each other's businesses. It estimated that this behaviour could have cost consumers around Euro212m between 2007 and 2011, adding that it was looking at a wide range of remedies to increase competition.
"Strikingly, despite low demand for cement over recent years, prices and profitability for the British producers have still increased," said Commission deputy chairman Martin Cave. He added that Lafarge Tarmac, Cemex and Hanson have concentrated on retaining their respective market shares rather than competing to the full.
The watchdog said that there was no explicit collusion between the firms. Instead there have been conditions that allow them to coordinate their behaviour, including established information channels such as price announcement letters, copy-cat behaviour and cross-sales.
"Given the extent of the problems we have found, we feel that hard-hitting measures may be necessary to open up the cement market to greater competition by transforming existing structures and behaviour," said Cave. Possible remedies could include requiring the firms to divest of cement plants as well as prohibiting generalised price announcement letters.
The UK cement industry consists of four companies: Lafarge Tarmac, Cemex and Hanson, a subsidiary of HeidelbergCement. The fourth company, Hope Construction Materials, was established in January 2013 as a result of the one of the Competition Commission's requirements for the creation of a joint-venture between Lafarge and Anglo American (Tarmac) in 2012. It led to the Euro353m sale of plants and quarries to steel tycoon Lakshmi Mittal's investment vehicle, including one of the UK's largest cement plants in Hope, Derbyshire.
South Korean cement producers retract price rise warning
24 April 2013South Korea: Leading cement producers in South Korea, including Tongyang Cement, Hanil Cement and Sungshin, have notified ready-mixed concrete companies and construction contractors that they will freeze cement prices for 2013. The move follows an investigation on suspected price collusion by the Fair Trade Commission.
The official notices from the cement producers attributed the decision to the financial difficulties experienced by most cement-consuming industries. Accordingly, the cement makers will soon cancel the invoices sent out to the consumer firms.
Since February 2013, cement producers have said they would raise cement prices by 9 – 10% in 2013 due to a rise in the prices of bituminous coal and other raw materials. The cumulative losses of Korea's six major cement producers since 2007 have been in excess of US$867m.
South Korea: The South Korean Fair Trade Commission has started an investigation into major cement companies including Ssangyong Cement Industrial and Hanil Cement for suspected price fixing. The companies had notified ready-mixed concrete operators that they would raise their cement prices by 9-10% in 2012.
On 9 April 2013 the commission sent investigators on a two day probe to seven cement producers: Ssangyong Cement Industrial, Hanil Cement, Tongyang Cement, Sungshin Cement, Lafarge Halla, Asia Cement and Hyundai Cement.
An industry source said, "Lately cement producers and ready-mixed concrete operators are at loggerheads over cement prices. It appears that the Fair Trade Commission is looking closely into the matter. In 2003, the commission had imposed penalties of US$22.5m for restricting the supply of cement to ready-mixed concrete makers in order to prevent them to use slag powder in place of cement."