Garadagh Cement reduces cement prices

Garadagh Cement JSC (Azerbaijan), which controls 35% of the Azerbaijani cement market, has reduced the sale prices for cement sold in bags by 5% on the average, according to the Turan Information Agency. The company had already decreased the prices of bulk cement on March 10.

The decrease mainly resulted from the shrinking demand due to the decreasing construction rates both in private housing and in the infrastructure projects financed from the state budget. The construction of new housing decreased 22% in Azerbaijan in Jan-Feb, 2009.

Due to the global financial crisis, commodities of the same kind are imported at lower prices into Azerbaijan, decreasing the competitive ability of the locally produced goods. The company’s experts have reckoned the demand will decrease 15% in 2009. According to this, the demand will be a maximum of 3.2 million tons against the 3.7 million of 2008.

The advisable retail price of Optimal is AZN 6.7 per bag, and that of Special is AZN 7.5 in Baku and the Absheron region.