Hill: Cement shortage ends
Published:Saturday | September 28, 2024 | 12:10 AMEdmond Campbell/Senior Staff Reporter
Minister of Industry, Investment and Commerce, Senator Aubyn Hill, says the shortage of cement on the market has ended.
According to the minister, the Caribbean Cement Company Limited (CCCL), a major producer of the product, has assured him that adequate supplies are now available to consumers.
In a ministerial statement to members of the Upper House yesterday, Hill said the company told him on Thursday that enough cement was on the market for players in the construction industry.
Earlier this month, CCCL confirmed that it could not meet the demand in the local market but had committed to address the shortfall in a matter of days.
Hill also took the opportunity yesterday to sound a warning to importers who had been given import quotas to bring in the product but did not use them.
“I am making it clear to importers that when you come back to me, we are not going to be able to give you additional quotas if you have substantial unused quotas for months that were not used,” he said.
The minister pointed out that quotas were given to importers to prevent huge fluctuations in the supply of cement in the marketplace.
“If you don’t use it (quota), you might lose it,” Hill warned.
DEVELOPMENTS DRIVING DEMAND
The industry, investment and commerce minister said infrastructure projects, housing and commercial developments have driven up the demand for cement.
He indicated that repairs to infrastructure damaged by Hurricane Beryl in July have also significantly increased the demand for cement.
According to Hill, a detailed market analysis carried out by his ministry between January and August 2024 revealed a decline in cement production, averaging an eight per cent drop per month.
Total domestic sales during this period amounted to 741,052 metric tons (MT), while total production for the similar timeline was 624,701 MT, which fell below demand on the domestic market.
Hill said Caribbean Cement had a scheduled maintenance programme from August 12 to September 3, 2024, which significantly affected the supply of cement in the market.
He said the company used up its import quota issued by the ministry and imported 25,000 tons of cement into the country but this was sold quickly owing to the increased demand in the construction sector triggered by the Category 4 Hurricane Beryl’s impact on houses and the infrastructure.
Turning to food prices on the market, Hill told his senatorial colleagues that the Consumer Affairs Commission (CAC) has reported that between August and September 2024, there was a noticeable easing of price increases compared to the sharp spikes seen in previous months.
“While West Indian red pepper still saw a significant 62 per cent price increase and local thyme followed with a 33 per cent rise, overall, price movements showed a slight decline,” Hill said.
“Of the 53 local and imported agricultural produce surveyed, 16 items (30 per cent) recorded price declines, ranging from one per cent to 11 per cent, indicating some stabilisation in market conditions,” the minister added.