Cement to cost more from Aug 1

Trinidad Cement Ltd yesterday announced an upward adjustment in the ex-factory price of cement, which will take effect from August 1, 2005. The company stated that this has become necessary owing to rising costs, which the company can no longer absorb in spite of its increased operating efficiencies. The new vat exclusive ex-factory prices will be $31.70 per 42.5 kg bag in Trinidad and $36.35 per 42.5 kg bag in Tobago. The price of Ordinary Portland Bulk cement will now be $683.98 per metric tonne. TCL has pointed out that it has been three years since the company’s last price change of 4.95 percent in June of 2002.

Before that increase, TCL kept its promise and held prices for three and a half years despite the spiralling cost of inputs. These include general inflation, increases in natural gas prices (which is a major cost component in the manufacture of cement), increased freight costs for the importation of spares and raw material, foreign exchange losses on supply contracts which are denominated in Euros and a host of other elements critical to the operation of the plant.

The company had been hopeful that recent negotiations led by the Trinidad and Tobago Manufactures Association with the National Gas Company towards increasing the competitiveness of local manufacturers would have resulted in a price reduction in natural gas for TCL. Unfortunately, TCL was not a beneficiary of a price reduction which would have mitigated the quantum of  increase in the price of cement. TCL said it was therefore left with no alternative but to implement a price adjustment in order to safeguard the organisation’s long-term viability. This is in keeping with its duty to ensure that cement is available for the buoyant construction sector at an affordable price both locally and regionally.