Cement Price Increases From 1 August

Monday, 1 August 2011, Kuching – Effective 1 August 2011, the price of Portland Cement across Sarawak has increased in line with a RM15 per metric tonne (MT) price increase to cement dealers announced Sarawak’s sole cement manufacturer, CMS Cement. The RM15 per MT price increase, equivalent to a 5% rise from the previous rates to dealers, was unavoidable in view of the continuously increasing costs of raw materials and bunker fuel which had affected CMS Cement.

The price rise by CMS Cement is its first since three years ago when prices were increased in August 2008. Since then, CMS Cement lowered its price of Portland Cement twice, in November 2008 and February 2009, despite continued rising costs of raw materials and a general uptrend in the price of other construction materials such as aggregate stones, sand and steel bars.

According to CMS Cement’s Executive Director, Haji Othman Abdul Rani, “In the production of cement, clinker, coal, gypsum and freight account for the bulk of our cost. With coal increasing 30% since 2008, clinker up 20% since 2008 and bunker fuel costs doubling since 2009 resulting in higher freight charges, CMS Cement is no longer able to absorb these increases.”

“We have tried very hard not to increase the price of Portland Cement to the market for a long time. With inflation rising and more costly raw materials, we looked first to improve our production efficiency and continue to do so today. But still, the increases in raw materials is beyond CMS Cement’s control and we have little choice but to build in this 5% or RM15 increase to the price of Portland Cement”, added Haji Othman.

CMS Cement, which began operations in 1974, manufactures Portland Cement and Cemplast masonry cement for the entire Sarawak market through grinding plants in Kuching and Bintulu, storage facilities in Sibu and Miri and a wide distribution network across the State.