Cement prices rise over high cost
Garadagh Sement, Azerbaijan's only cement producer, raised prices
for cement sold to construction companies since Saturday.
The company's spokesman Isgandar Sardarly confirmed the report but said the increase will not exceed 16%.
The price per ton of the product rose from 107 to 124 manats ($147) for the Optimal brand and from 128.5 to 149 manats ($177) for the Special brand.
Garadagh Sement explained the move by the increase in the cost-value of produced cement. The 95% increase in the price for clinker, the key raw material, has raised production costs, prompting the company to reconsider its pricing policy. At the same time, the producer has pledged that the hike had no bearing on the price for cement sold to the population and that current prices in the domestic market would remain unchanged.
Local companies engaged in building housing buy cement directly from the plant, i.e. without the use of distributors and intermediaries. The businesses said Garadagh Sement had earlier warned that it would sell cement for a new price starting on December 1.
Entrepreneurs say that since cement is one of the main materials in construction operations, the hike is likely to cause prices in the real estate market to go up by at least 3%.
The company's spokesman Isgandar Sardarly confirmed the report but said the increase will not exceed 16%.
The price per ton of the product rose from 107 to 124 manats ($147) for the Optimal brand and from 128.5 to 149 manats ($177) for the Special brand.
Garadagh Sement explained the move by the increase in the cost-value of produced cement. The 95% increase in the price for clinker, the key raw material, has raised production costs, prompting the company to reconsider its pricing policy. At the same time, the producer has pledged that the hike had no bearing on the price for cement sold to the population and that current prices in the domestic market would remain unchanged.
Local companies engaged in building housing buy cement directly from the plant, i.e. without the use of distributors and intermediaries. The businesses said Garadagh Sement had earlier warned that it would sell cement for a new price starting on December 1.
Entrepreneurs say that since cement is one of the main materials in construction operations, the hike is likely to cause prices in the real estate market to go up by at least 3%.
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