Rise in cement prices due to rising raw material prices, according to CIMA
SEREMBAN (23 March): The current rise in cement prices is due to rising prices of raw materials used in the manufacturing process, especially coal, in the international market, said Sharuddin Omar Hashim, CEO of Cement Industries of Malaysia Berhad (CIMA).
He said raw materials were seeing price hikes, including coal which now accounts for 30-40% of the cost of producing cement, leaving manufacturing firms no choice but to raise prices.
He also added that the current increase in coal prices was due to Indonesia’s export ban, as well as the conflict between Russia and Ukraine.
“Coal prices used to range between US$60 (RM252) and US$70 (RM294) per tonne, but have now risen to US$200 (RM842) per tonne and could reach US$400 (RM1,685).
“Indonesia’s ban on exports to other countries, as well as the Russian-Ukrainian conflict, have caused difficulties in the supply of coal, thus driving up the prices of raw materials,” he said. told reporters at the press conference and appreciation event. here on Tuesday (March 22).
He said the prices of other raw materials in the production of cement had also risen quite sharply, following the Covid-19 pandemic, apart from congestion problems in terms of logistics and distribution.
Sharuddin said his company is doing its best to optimize production and reduce production costs through the use of other alternative materials.
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