Taiwan Cement Corp expects its plant in southeast China’s Guangdong province to continue to raise prices in 2008, following several increases this year, as demand keeps growing and supply remains relatively stagnant.
After an anticipated seasonal correction in the first quarter "our delivery price at the Guangdong site may reach 420-450 yuan per metric ton in the second half of 2008", senior vice president Edward Huang said in an interview with XFN-Asia.
"Driving forces include increasing demand, flat supply and hikes in manufacturing costs such as coal," he said. The company’s Guangdong production lines will raise their cement price by another 20 yuan to 400 yuan per ton tomorrow. Since the end of last year the price has risen in several increments from 260 yuan per ton. "The price may fall to 370-380 yuan after the Lunar New Year (in February) due to seasonal factors but it should then recover to 400 yuan in April," Huang said.