Fiji cement prices decreases
The prices of bagged and bulked cement has decreased to $233.91/t and $212.65 per tonne, respectively, effective yesterday.
The Commerce Commission confirmed the new price determination that showed a decrease of $21.73/t for bagged cement and $19.75 for bulk cement.
The commission released an interim determination in October for Portland cements sold by Fiji Industries Limited (FIL) allowing nine per cent increases in the prices of bagged and bulked cement.
Since then, the commission conducted a detailed research based on scientific methodology to examine the pricing structure of cement products sold by FIL.
Commission chairman Dr Mahendra Reddy said upon completion of the research, it was noted that the cost of imported raw material had increased since FIL no longer produced clinker, rather it imported it from its parent company based in Singapore.
He said FIL was making substantial savings in its operational costs because it was now importing clinker thus saving on wages used to pay workers for clinker exploration costs.
"FIL has had a net profit of around $3 million to $4 million each year since 2005. The closure of its clinker plants and restructure of the company has allowed FIL to achieve this," Dr Reddy said.
Published under Cement News
