Industry to be hit with 16% cement price hike

Aaron Morby 3 years ago
Share

Cement producers are planning to hike prices by £15 a tonne blaming high energy costs for the biggest single increase in decades.

The big industry-wide hike amounts to around a 16% jump and will come into force at the end of this year.

It threatens to send a shock wave through construction taking the annual rise to an unprecedented 30% over the year.

One contractor warned: “This is going to hit everybody but also major projects very hard. A jump like this will impact planned spending on Government projects.”

A precast user said: “The shocking thing is we are being told that there is no point in trying another supplier because all the key producers are putting up prices by similar amounts. We’re being told it’s basically non-negotiable.

“The industry is used to 3% and 5% increases but this is unprecedented. Taking into account rises already this year it will mean cement has soared 30% on a year.”

He added: “It seems it is going up across the board whether you take 30t, 300t or 3,000t a year”

Another firm told the Enquirer: “We have done a ring round and it seems all the producers are going for the same rise.

“Five months ago all the big producers were putting us on allocation after seemingly all shutting down kilns around the same time for maintenance.

“Now the industry is being hit with this major price rise. It mirrors what happened around 30 years ago.”

He added: “We warned the producers it was short-sighted just passing on extra costs.

“As a business, we try to absorb a proportion of cost increases, by finding savings from growth and cost efficiencies. You can’t just pass it all on down the supply chain without it having a huge impact.

“It’s going to push people away from cement to cement-free alternatives. These cost around £150 a tonne but the gap is closing now that cement is breaking through a £100 a tonne.”

Latest news

Ridge buys rival consultant Jubb

Acquisition will see 100 new staff join Ridge
1 hour ago

Enabling works to start £130m Huyton town centre regen

Phase one includes a new council HQ, hotel and 72 flats
2 hours ago

Grainger build to rent pipeline rises to £1.4bn

Rental specialist buys sites in Sheffield and Cardiff to build 600 rental homes
2 hours ago

Kier wins Cambridgeshire County council estate upkeep

Firm will provide building and M&E services to 106 buildings across the county
1 hour ago

Louvres and solar shading specialist files for administration

Hampshire based ALPS lodges court notice after 25 years in business
2 hours ago

Speedy Hire posts a loss in latest results

Hire giant confident of better performance in next six months
2 hours ago

Esh to lead next phase of Riverside Sunderland regeneration

Infrastructure work will allow further development of Sheepfolds area
1 hour ago

Green light for £1.3bn Edinburgh coastal town revamp

First phase of Granton Waterfront scheme will see Cruden Homes create a new community
19 hours ago

Vistry chief operating officer steps down

Earl Sibley exits as his COO role axed for more direct reporting to CEO
1 day ago

House builder Camstead goes into administration

Work stopped on three current sites
2 days ago

Death of piling legend Roger Bullivant

Industry innovator dies after long illness aged 85
1 day ago

ESS Modular went down owing suppliers £7m

Modular specialist owned by ISG owner Cathexis
1 day ago

Builders back farmers in inheritance tax protest

"A rethink is desperately needed" say National Federation of Builders
1 day ago

Willmott Dixon wins £36m leisure centre upgrade

Work to start on historic Westminster 1930s Grade II listed Seymour Centre
1 day ago

Graham wins £100m Cardiff Crossrail phase 1

Work on route to Cardiff Bay to start before end of next year
2 days ago

Laing O’Rourke appoints new European MD

Peter Lyons to take-up new role in February
3 days ago

Profits dip at Stepnell ahead of demerger

Turnover and secured workloads up ahead of restructure
3 days ago

HS2 green bridge deck takes shape

100m-wide wildlife bridge to carry hedgerows and country lane over HS2
2 days ago

1,000-home Wolverhampton city centre scheme in for planning

ECF and council advance City Centre West build to rent scheme
3 days ago

Sisk clinches £54m North London council HQ revamp

Haringey's iconic Grade II listed civic centre to be brought back into use
3 days ago

Ofgem approves £2.5bn Eastern Green Link 1

Work to start next Spring on cable project from Scotland to the north of England
3 days ago

Anglian Water hunts for £1bn delivery partner

Programme delivery partner wil integrate with client team over 15-year plan
3 days ago

Hadden collapse costs supply chain £6.7m

"Highly unlikely" subcontractors will receive anything for their unpaid invoices
3 days ago

Management buyout at M&E specialist

£25m turnover Kimpton in second MBO in its 60-year history
3 days ago

BAM finalises £71m deal to replace first major RAAC school

Work to start on new St Leonards Catholic School in Durham
3 days ago

Scaffolder hit by two tonne weight at nuclear plant

Court hands out £633,000 in fines after Dungeness B decommissioning incident
3 days ago

Go-ahead for 860,000 sq ft East London medical campus

Whitechapel Road scheme of six new and repurposed buildings
3 days ago

Site labour rates hit record high as cost inflation returns

Industry's biggest payroll firm says rates rose nearly 5% last month in London
6 days ago

Morris & Spottiswood acquires part of ISG fit-out division

ISG Cathedral acquisition saves 111 jobs and expands presence across England
7 days ago

New work drives Q3 construction output uplift

Third quarter activity up 0.8% despite slowdown in September
6 days ago

Contractor services