Cement prices go down in Azerbaijan

Cement prices go down in Azerbaijan
06 November 2006

Cement prices have recently began to go down in the retail market in Azerbaijan. The price per bag cement has fallen to AZN 6.4 from AZN 9, APA reports.

Economic Development Ministry press service told APA that Antimonopoly Department has monitored artificial price increase in the domestic market and the results will be publicized soon. The Ministry claims that the prices will fall to the level of the price set by the cement producer.

Kamran Abbasov, marketing manager of Garadagh Cement, the only clinker and cement producer in Azerbaijan, told APA that the Company has taken all necessary measures for price control and the prices will fall to the desired level shortly.

“We increased awareness through media. The sale price has been stuck on the cement bags and local sale stations were warned not to increase the price,” he said.

Mr. Abbasov said Antimonopoly Department’s monitoring has also played a part to prevent price rising. He said the price is also expected to fall because of winter and Garadagh Cement provides 110-115,000t of cement for the domestic market and the prices of Garadagh Cement products, including VAT, at the plant, are the following:

Garadagh Special bags: AZN 85.55 / ton (AZN 4.28 / bag)
Garadagh Optimal bags: AZN 69.45 / ton (AZN 3.47 / bag)

Transportation tariff from Garadagh to Baku area (just for example, as transportation tariffs are different to various destinations, function of distance) is, for both above bag products, AZN 5.93 / ton (AZN 0.3 / bag), including VAT.

PHM experts attribute the price fall to increase of imports and Government’s monitoring spate. PHM executive director Nusrat Ibrahimov told APA that besides cement, the prices of wood, chipboard, glass and asbestos sheeting also went up in the past month. The reason for price rise is high cement demand because of intensive construction in autumn and repair in the cement producing plant.

Mr. Ibrahimov said that as of November 1 the prices of cement rose by 50% (M300-73.1%, M400-31.3%), wood by 64%, glass by 35%, clipboard by 9.6% and asbestos sheeting 9.1% as against the previous month. (Azerbaijan Press Report)
Published under Cement News