Trinidad Cement Ltd (TCL), the country's sole cement supplier, is set to raise prices yet again by March 20.
TCL officials confirmed on Wednesday that the ex-factory prices will increase by five per cent for ECO cement and eight per cent for premium plus. This amounts to respective increases per 42.5kg bag of $2.08 to $43.65, and $3.54 to $47.83, before VAT.
Newsday was told that the announcement of the impending price increases was made to stakeholders in the construction industry last week.
“Cement prices are in fact set to be marginally adjusted, taking into consideration some of the rising cost factors with which TCL is faced,” said the company in response to questions from Newsday.
In December 2021, TCL raised the price of a 42.5kg bag of ECO cement by eight per cent to $43.71 VAT-inclusive, and by 15 per cent to $46.56 VAT-inclusive for premium of the same weight. At that time, the prices before VAT were $38.85 and $41.39 respectively. However, the new proposed price list showed before-tax prices of $41.57 and $44.29 respectively, suggesting there was an another adjustment since 2021.
Owned by Mexican cement giant, Cemex, TCL told Newsday that cement is locally produced and had not been affected by the same price volatility as lumber and steel throughout the covid19 pandemic.
“However, the cost of local inputs which represents 75 per cent of TCL’s total expenses continues to rise, along with key items such as refractory bricks and electronic parts for which in some cases, the prices have been doubled because of the energy crisis in Europe, triggered by the Russia/Ukraine war,” TCL said.
Checks at hardwares revealed that the average retail price for a bag of premium cement was $54. TCL noted its cement prices, despite the increases, are considerably lower than its prices seven years ago.
Contractors Association president Glen Mahabirsingh on Wednesday said this would be the third price increase for TCL cement in 16 months. He said in August 2022, prices went up by seven per cent.
[caption id="attachment_1005866" align="alignnone" width="1024"] TCL premium plus cement is set to increase by eight per cent in the ex-factory price by March 20. -[/caption]
“What the construction industry has experienced is that over the last 16 months we have experienced an overall increase in cement of 27 per cent,” he said. “We have seen increases every six to seven months. This makes it very difficult for estimating and cost planning.”
He explained that cement is one of the main inputs in constructing homes – from the manufacturing of blocks to precast concrete units to installation of blocks and finishing the block work with rendering and plastering.
“After aggregate, cement is the second most important building material in the industry. So cement is very critical for any construction. It could be an individual doing home improvement or doing a mega project.”
He said a basic 600 sq ft two-bedroom home would cost about $360,000 to construct. Cement in its various forms could take up the cost of most s
