Andrea Perez-Sobers
Senior Reporter
andrea.perez-sobers@guardian.co.tt
Local cement manufacturer Trinidad Cement Ltd (TCL) yesterday announced that the price of the commodity will increase on February 19, 13 days from today.
The cement price increases are between 6.63 per cent and 7.69 per cent, according to Guardian Media calculations.
The new price of the 42.5 kilogram (kg) bag of Premium Plus cement VAT inclusive is $57.38. The current cement price is $53.81, which is an increase of 6.63 per cent.
Eco Cement in 42.5kg sacks will now be $52.88 VAT inclusive, while the current price stood at $49.10. That is an increase of 7.69 per cent
Sulphate Resistant in 42.5kg sacks will now increase to $148.50 VAT inclusive from $139.08, an increase of 6.77 per cent.
The notice of the increase, which takes effect on February 19, was sent to hardware stores and large customers yesterday afternoon.
In the message to its “valued clients,” TCL said: “As discussed at our virtual meeting held on Monday January 22, 2024, Cemex TCL continues to face increasing manufacturing costs. Despite our investments and efficiencies implementation, we have been unable to mitigate increases fully.
“Cemex TCL continues to give priority to our valued customers by providing excellent quality cement and availability at the most competitive prices. Please be guided by the attached updated customer price list, effective Monday, February 19. We remain committed to making investments in creating a superior customer experience for you."
In a statement to the Guardian Media, last evening TCL said due to the continuous inflation that affects the industry and other economic sectors, it has become necessary to adjust the price of cement by $3 per sack.
“This decision is unavoidable to cope with the escalating costs of natural gas, raw materials, spare parts, and other essential inputs, which have risen significantly in the past year. We have continued to invest in enhancing our efficiencies, upgrading our technology, and optimizing our processes to minimize the environmental impact of our operations.
“However, these actions are insufficient to mitigate the negative effect of inflation on our business. Despite this price adjustment, Trinidad & Tobago still retains the most competitive price of cement in the Caricom region,” TCL further stated.
The cement company said it continues to generate foreign exchange through its exports, providing direct and indirect employment, and working towards preserving the environment.
TCL increased prices on March 20, 2023, five per cent for ECO cement and eight per cent for premium plus.
The company said then, “Cement prices are in fact set to be marginally adjusted, taking into consideration some of the rising cost factors with which TCL is faced.”
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 a premium of the same weight.
One hardware owner, who wished not to be named, said TCL continues to raise prices, because it is the monopoly supplier of cement, so the hardware has no choice but to go with the increases, which is not good.
Mexico’s Cemex group is TCL's largest shareholder with a 69.83 per cent stake in the cement producer,
Rock Hard Distributors, a company owned by the Ramhit construction family, decided to shut down its operations in September 2021.
Rock Hard had been importing cement from Turkey. In its notice in September, Rock Hard complained that it faced “continuous challenges” from the T&T Government “initially in the form of misclassification, which meant we were charged a higher rate of duty than was legally allowed for our cement."
The Government also imposed a 50 per cent duty on imported cement.
