Energy costs to push up cement prices

Cement makers will raise prices in response to higher fuel bills and the costs of legislation.

A fortnight ago, CJ reported that Castle Cement plans a 10% to 15% price rise after its electricity bill rose by a half.

The three other major UK producers said this week they will follow suit. RMC commercial director for UK cement Gareth Moores said a 73% higher electricity bill will force the company to put on an extra £8.50 a tonne to break even. The average price of Ordinary Portland Cement is £100 a tonne.

He added that the Working Time Directive could mean further increases, although it is still unclear how much.

Lafarge and Buxton Lime Industries are also planning increases. Lafarge said “inflationary pressures” are forcing up prices next year, but declined to comment further. Buxton development director Steve Clare said the company will probably inform customers of rises today. “When energy costs go up as swingeingly as they have, we’ve no choice but to put prices up. The sooner we can recover some of the costs, the better.”

Cement firms are also hit by the Chromium VI Directive. Moore said: “It’s another piece of bad legislation, more so than the Working Time Directive.” Preventative measures will cost RMC more than £1 a tonne.