Egypt cement makers back down on price rise-agency

Egypt cement makers back down on price rise-agency
Published: 22 January 2010

Two Egyptian cement makers backed down from increasing their prices after the government warned them against it, the state news agency MENA quoted a Trade Ministry legal consultant as saying on Thursday.

Egyptian media earlier said Suez Cement, one the country’s largest producers, was planning to raise the price per tonne by E£22 to E£455.

Amreyah Cimpor Cement Co, a subsidiary of Cimpor, was also reported to have planned an increase.

"Both the Suez Group and Amreyah Cimpor Cement Co., in response to a warning from the ministry, announced they had withdrawn the price increases they had announced," Hesham Ragab was quoted as saying.

Rising demand for cement has been pushing up prices in Egypt, where the construction sector has been buoyed by demand for housing and by government infrastructure spending under a stimulus package.

The price increases have triggered complaints from the public.

"Trade Minister Rachid Mohamed Rachid has assigned extra inspections in the (cement) markets," MENA reported. This was to ensure enforcement of government industrial regulations, it added.

Source: Edited Reuters report