Jul 2011 Financial News

Cement prices going up

Jul 05, 2011

CARIB Cement has cited increasing costs at a greater rate than its sales as the reason for a five per cent price adjustment which becomes effective next Monday.

The company said it had been faced with significant increases in costs since it reduced its prices to customers last October.

“Carib Cement had been negatively affected by a 25 per cent increase in the cost of diesel, a 34 per cent increase in coal, a 40 per cent increase in heavy fuel oil, a four per cent increase in packaging and a 21 per cent increase in the cost of electricity,” the company said in a news release.

It said the ex-factory price of a bag of Carib Cement Plus will move from the current $525 to $550.

The last time that Carib Cement increased its price was in July 2010, when the price per bag was $568. The company said it actually rolled back prices by seven per cent in October 2010, and the new price, effective July 11, will be less than the price one year ago.

“The company has resisted the increase for as long as possible in the current environment of rising costs and prices,” the statement said.

“Carib Cement has estimated that the impact on the cost of home construction will be less than one per cent, as cement accounts on average, for less than 10 per cent of the total cost of a house.”


Source:
Jamaica Observer
Tuesday July 5, 2011

http://www.jamaicaobserver.com/news/Cement-prices-going-up#ixzz1RFdSXAnq