PETER CHRISTOPHER
The already volatile price of cement is set to rise again next week Monday.
In a notice to stakeholders and industry partners from Sales distribution segment manager Reshma Gooljar-Singh, distributors were advised of TCL impending price adjustment of approximately 15% which will take effect on December 20, 2021.
In the notice TCL said, "We have been absorbing rising input costs for a long time and are now unable to continue to maintain our prices. The main attributing cost factors are natural gas, imported spares, and other raw materials that go into manufacturing the highest quality cement brands, which you represent. "
Throughout the pandemic the cost of materials for construction have fluctuated, with cement prices at times being sold at three times it's usually price due to limited supply and high demand.
TCL acknowledged the construction industry was vulnerable, but said the adjustment was done with the sector in mind.
"We assure you that in the interest of protecting the vulnerable construction sector, our price adjustment is only a marginal increase when compared to the escalating operating expenses with which we are faced. As you would also know through our direct communication and sales force, we have been investing heavily in improving our operational efficiencies to offset some of the inflationary pressure and in so doing, buffer the impact to the consumer and the sector at large," said TCL in the notice.
According to the notice, the price of TCL's Premium Plus Cement in 42.5KG sacks, will be sold at $46.56 VAT inclusive.
Currently the average bag of Cement is sold at a retail price of $45-$50.
TCL in its notice, however suggested consideration be given to its Eco-Cement line, which will receive a price adjustment of 8 per cent, as a cheaper and more environmentally friendly alternative to the Premium Plus line.
TCL said "In 2020 we moved to manufacture ECO cement, which significantly benefits the environment as it generates less CO2 emissions during production."
The ECO-Cement 43.5kg sack will be priced at $43.71 VAT inclusive.