Azernews.Az

Cement prices may rise again in 2009 in Azerbaijan. Garadagh Cement, the country`s only cement producer, has decided to increase domestic prices to match the level of inflation, the company said.
Given that inflation is anticipated to rise to 20% in 2008, the same increase is expected in cement prices. Thus, the price per sack of cement is expected to rise to 11-12 manats (as high as $15).
Considering the 16-17% increase in domestic prices last year, the price for cement was raised, accordingly, beginning in May 2008.
Reports from construction companies speculate that the 20% rise in cement prices may drive up prices by 5% for housing under construction.
Overall, the demand for cement in Azerbaijan is predicted to increase 22% this year to reach 4 million tons due to, among other things, large-scale construction and upgrade operations.
In light of rising demand for cement in Azerbaijan, companies operating in the field plan to build new plants. It has been confirmed that Garadagh Cement will build a second plant, while the local AKKORD company will construct a facility, jointly with a Chinese company, in the Tovuz district.
About two-thirds of Azerbaijan`s demand for cement is met domestically, while the rest is imported from Russia, Georgia and Ukraine.