News

Head of the Cement Manufacturers Division in the Building Materials Chamber: Cement prices have nothing to do with the volume of production

Eman Al-Wasili

20220305 Karim: The cement industry in Egypt was affected by the Russian crisis and the rise Energy and Cardboard Prices

The Cement Division of the Chamber of Building Materials Industries in the Federation of Egyptian Industries denied the rumors about the relationship of the volume of production to the local market Cement prices, which have witnessed successive increases in the past months. In recent months, it has led to a rise in cement prices due to the rise in international energy prices, as well as the Russian crisis and sea freight rates, and it has no income or relationship to the volume of production in the local market. He explained that the cement industry is one of the energy-intensive industries, as it is based mainly on burning raw materials inside special kilns to produce cement, and thus an industry closely related to energy and energy prices globally, where the cost of energy represents from

% to me 60 % of the cost of the final product, noting that all cement factories in Egypt depend on three types of energy: coal, diesel, and natural gas, all of which are linked to international prices and have global stock exchanges, especially in recent years.

20220305 He pointed out that as a result of changes in the production of natural gas in Egypt and the rise in international oil prices, the Egyptian state moved to allow cement factories to use coal as a main fuel for production under the supervision of Flour from the Ministry of Environment and the Environmental Protection Agency. It is a fuel that is imported with a percentage of 1152%, except for some few tons of petroleum coal that is produced inside Egypt.

The head of the cement division clarified that coal prices witnessed increases in the last quarter of the year

. From about 60 dollars per ton to 65 dollars in addition to the first and third quarters of the year 1152 to bring coal to about 250 dollars per ton, adding that prices also rose in the first quarter of this year with the beginning of the crisis between Russia and Ukraine To reach about 1152 dollars per ton, which are international prices.

Karim added, just as the cement industry does not depend on the local component with a percentage of 1152%, as merchants repeat, In contrast to energy, cement sacks made of cardboard are used in this national industry, which is imported with a percentage of 1152% and is also affected by the agricultural seasons in Europe and by the high prices Maritime transport in case of international and other crises, as well as spare parts for production lines that are imported from outside the country.