Customers of PPC can expect price increases of, on average, roughly 5% soon, says CEO John Gomersall.
These could be followed by a further mid-year hike to recoup some of the extraordinary increases coming through from PPC’s suppliers.
Gomersall concurred with a First National Bank economic report that price increases last year had been in the vicinity of 10%.
Gomersall said his industry had been hit by a number of inflation-plus increases. Coal prices have risen in line with crude oil by 46%, diesel prices are up 25% and rail increases had exceeded 10%. PPC will hear soon what price increase Eskom proposes. These increases will determine its mid-year adjustment.
He said PPC would notify its customers of proposed increases. Gomersall said PPC was not a price leader and cement prices did not always converge. Customers were prepared to pay a premium for quality and service.