Displaying items by tag: Price
Saudi Arabia bans exports to stem cement crisis
22 February 2012Saudi Arabia: The Ministry of Commerce and the department of customs has tightened its surveillance on Saudi cement outlets to ensure a strict implementation of the ban on exporting cement, which came into effect on 18 February 2012.Industry sources said that no cement or clinker bricks had been exported since the ban was imposed. Only Bahrain is exempt from the ban, receiving about 25,000 bags of cement per week.
Some cement companies took advantage of a grace period that preceded the start of the ban to export large quantities of cement. Keen not to confuse or disturb the companies, the ministry warned producers beforehand, enabling factories to coordinate with distributors. A meeting was held in January 2012 warning that such a move was becoming likely.
Following the ban on exports Al Jouf cement announced an immediate 30% price increase. The company justified its move by saying that it was done to reduce the losses it might incur as a result of the ban.
The ministry said that it had stopped exports in order to put an end to the cement crisis, which has seen cement become very scarce in certain regions of the country. It asked factories to produce at full capacity to provide enough cement for local consumers. A cement shortage in Makkah is expected to end with the ban on exports and an extra 10,000t/day, produced for the Makkah region.
Earlier, more than 70 people were arrested and are to be investigated in connection with a cement crisis in Jeddah, which had seen cement become expensive and scarce since the start of 2012. Trucks owned by the accused were captured while selling cement at inflated black market prices in various parts of the city.
Saudi authorities sweep up black-market dealers
06 February 2012Saudi Arabia: More than 70 people are to be investigated in connection with the current cement crisis in Jeddah, which has seen cement become expensive and scarce since the start of 2012. Trucks owned by the accused were captured while selling cement at inflated black market prices in various parts of the city.
A special committee, formed by Jeddah Govenor Prince Mishaal bin Majed, raided about 15 warehouses where cement was being sold by foreign dealers. It is claimed that the dealers had signed agreements with contractors that were executing a number of government projects to sell them cement at high prices. "This has created an acute shortage in the quantities of cement available in the market," he added.
Prior to the commencement of the investigation, local press had reported angry crowds at points of sale and said that security forces had to intervene in some instances. Market sources believe the crisis was created by the inability of the factories to work at full capacity because they were not given enough fuel.
Abdullah Al-Ammar, a contractor, did not see any justification for the shortage. "This is an artificial crisis created by some traders who want to monopolise the cement market and stack it away in their stores, only selling it when the price goes up," he said. Al-Ammar asked the Commerce Ministry to impose harsher punitive measures against traders who were caught selling cement on the black market or hiding it. He hoped that the problem would be alleviated when two new cement factories are commissioned later in 2012.
Pakistani export price to Afghanistan rises by 25%
27 January 2012Afghanistan/Pakistan: Exporters from Pakistan have raised cement prices in the Afghan market by 25%.
Cement exports to Afghanistan currently represent 50% of the total exports from Pakistan where major quantities are shipped by the companies close to the north-west border between the neighbouring countries. According to Shagufta Irshad, a senior analyst of KASB Securities, Pakistan exported 4.7Mt to Afghanistan during the year 2010-2011 and 2.5Mt during the first half of 2011-2012. This increase will have a positive impact on the earnings of exporting companies in the current financial year, as well as to the country as a whole.
Currently Pakistani cement dominates in the central and north regions of Afghanistan where major reconstruction activities are underway. The Pakistani companies with the most exposure to the Afghan market include Lucky Cement, Bestway, Cherat, Lafarge Cement, Fauji Cement and DG Khan Cement. DG Khan Cement has a higher exposure to the Afghan market than Lucky Cement because both its plants are located in the northern region.
Pakistan's exports to Afghanistan currently contribute 30% of DG Khan Cement's total exports, compared to 20-25% for Lucky Cement. Shagufta noted that this increase will bring a rise of 16% and 3% in the earnings for DG Khan Cement and Lucky Cement respectively in the year 2011-2012.
Nigerian cement prices rise by 25%
05 January 2012Nigeria: The price of cement in Nigeria has risen by 25% since November 2011. This coincides with the peak of the nation's dry season, traditionally a period of increased construction. This has been exacerbated by the removal of Nigeria's fuel subsidy on 1 January 2012.
In Lagos and neighbouring towns in Ogun State the construction industry has witnessed unprecedented growth in recent years. Hajia Rukiyat Ajibola, a retailer in Mowe, Ogun State, stated that there was a high probability of the price of cement increasing even further if nothing was done.
Nigeria imported 124,000t of cement in December 2011. This figure represented a drop of 31% from November 2011 when 179,000t was imported into the country. Previously prices skyrocketed in May 2011 prompting President Goodluck Jonathan to issue a presidential directive to manufacturers to slash prices. At the time market leader Dangote and other manufacturers and importers announced price reductions.