The average selling price of local cement is now on par with cement prices in the Asia-Pacific which range from RM273 to RM277 per tonne.
On Monday, Lafarge Malayan Cement Bhd, which controls about 40% of the local cement market, said it would raise the prices of its cement products by RM20 per tonne from Aug 1.
Industry analysts said the latest price increase would translate into a new average selling price of about RM277 per tonne for cement in Malaysia.
They expect further hikes in cement price this year, given strong indications that other local players like YTL Cement Bhd, Tasek Cement Bhd and Cement Industries of Malaysia Bhd would soon emulate Lafarge’s move to offset the recent 26% rise in electricity tariff and 63% jump in diesel price.
An analyst with a foreign brokerage told StarBiz the local cement industry was an oligopoly dominated by four large players.