| Cement firms raise prices |
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| Thursday, 28 September 2006 | |
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Cement Contractors face a price rise for cement next month after manufacturers said they could no longer shoulder energy costs.
Lafarge Cement said it will raise prices for bulk and packed cements by up to 15%. The company blamed rising energy costs, and said it is at the mercy of “the carbon tax regime”. B&E has previously reported that specifiers are unlikely to see any overall respite in the costs of materials. The Energy Intensive Users Group predicted a bleak winter ahead with energy bills again hitting manufacturers and their customers. The media has subsequently reported that there could be some respite in gas prices, but it looks like it will be some time before lower bills benefit materials buyers. A Lafarge spokesman told B&E: “Energy is one of the cost pressures that’s impacting us. It’s going up pretty fast and it accounts for about one-third of production costs. Everyone can see it in their domestic bills, and manufacturers perhaps feel it a little more.” Castle Cement also plans to put up its prices. A spokesman said the company is susceptible to energy costs, despite its attempts to use alternative fuels, such as solvent, paper, tyres and animal waste. He said: “In terms of packed cement, we will be increasing the price from 1 October by approximately 10%. This is despite the fact that we’re increasing our use of alternative raw materials. For bulk prices, we will be issuing a statement as soon as we have made a decision.” A spokeswoman for Cemex said the company’s prices are “under discussion”, although there were no immediate plans to increase them. |