TRINIDAD: Cement price to go up by $5 from today

The price increase was disclosed by Trinidad Cement Ltd (TCL) whose customers can expect to pay around $5 more per bag.

The company stated: “TCL Premium Plus, which accounts for 95 per cent of local market share, will be adjusted by nine per cent, which is equal to a five cent increase per pound from $.53 to $.58 VAT inclusive. Ordinary Portland Cement (OPC), which is used by approximately five per cent of the market, will move by 15 per cent.”

This means the average price ($60 for a bag of cement) will go up at least $5. Hardware owners and contractors have already been informed of the increase by TCL.

TCL stated: “These price movements have resulted from continual increases in major cost components over the past 18 months, but more so, over the past six months, when there has been a steady rise in the price of equipment spares, raw materials, freight rates and supplier services.”

It said the entire local construction industry was facing increased costing in building materials and the last time the company’s cement price was adjusted was on January 2, 2013. A commitment was made then to not make any changes for 12 months.

The company stated: “In recognition of the fact that cement is a major element of local and regional economic growth, TCL has kept the adjustments to a minimum and is pleased to state, that its prices still remain close to the lower end of the tier when compared in a global context. Independent studies by Quantity Surveyors have confirmed the total cost of cement in a standard dwelling house is just five per cent of overall construction material cost.”

TCL stated that as is customary, all contractors registered with the Trinidad and Tobago Contractors’ Association (TTCA) will be offered a three-month waiver of the new price for fixed price contracts with their clients.

n An official with a major construction company in Chaguanas said the increase in prices of cement may result in less work being done privately, and some contracts may be fixed so contractors would be operating at a loss. He also said since cement was used to make concrete blocks, increased prices in those were also expected.

The official said: “With the construction sector and with people building their own houses, it is going to be a bit hard with the cement prices going up. It will be a bigger expense to the contractor and the people who have houses to build.”

However he added: “People would spend their money if they have a project going on. It may slow down the private sector but as for contractors, the job has to be completed no matter what.”