Cement shortage bites Guyana

And sporting events around the world are also said to be putting a squeeze on cement supplies, as nations construct accommodation facilities and stadiums.

Last December the retail price for one sack of cement in Guyana was $1,100 to $1,200 but this price has now doubled in some areas due to large-scale shortages.

Guyana’s Minister of Commerce Manzoor Nadir said the government was moving to finalise a letter of credit to facilitate the importation of 6,000 to 8,000 tonnes of cement monthly. China was indicated as the country where the government was hoping to source the cement from but the minister in an earlier interview had noted that seven quotations were received from possible cement sources and the offers on hand varied in terms of the prices.

Nadir said that once this supply arrangement is finalised, the government would like it to continue for as long as possible since it will ensure that aggregates are available for the construction industry. After the arrangement to import the cement is finalised, delivery is expected to take 21 days. The government had stated earlier that its retail price for cement will not exceed $1,300 per sack.

In TT, government was moving toward establishing price controls on aggregate, cement, steel and concrete to ease price pressures in the construction industry.

Nadir said that he would not like to see price controls instituted, even as cement prices continue to rise. The government in 2004 waived the Common External Tariff (CET) on cement to encourage extra-regional imports. The government first attempted to source 20,000 to 30,000 tonnes of cement from Venezuela in four to five shipments but the minister did not give details on this effort.

And closer to home, the region is currently preparing to host the Cricket World Cup in March next year and there is large-scale production of accommodation facilities and stadiums. Before the large construction boom for the Cricket World Cup, regional cement supplier Trinidad Cement Limited (TCL) was challenged to meet the cement demand and with the steep surge of construction, that inability has worsened. As a result, Guyana receives limited quantities of TCL cement, leaving the government to seek extra-regional cement.