WITH prices of goods rising across the board, CMS Cement Industries Sdn Bhd (CMSCI) announced that it would hike up its cement prices by an average of 10%, subject to product types and location.
The price hike, effective Feb 17, is being done due significant and sustained rising cost of raw and packaging materials, in addition to freight charges.
“Over the years, cement production cost has increased by an average of 9% and, in view of the current macro-environment, CMSCI expects its production costs to continue on an upward trend,” it said, in a statement.
CMSCI is a wholly-owned subsidiary of Cahya Mata Sarawak Bhd (CMSB).
On that note, CMSCI said that it had to raise prices after absorbing cost increases in the last six years due to a steep rise in global dry bulk freight rates, by up to 64% last year.
It added that based on benchmark Baltic Dry Index, sack kraft paper costs have risen by 33% during the same period, which in turn, has increased packaging costs for the cement industry.
“Despite the price adjustments, the average unit price of cement in Sarawak remains competitive compared with other regions in Malaysia, especially now as prices of cement in both Sabah and Peninsula Malaysia have been increasing over the last several months.
“Just for everyone to know, the prices of other building materials such as steel have also surged across the board since January last year. The Building Materials Cost Index (BCI) has increased by 2.3% in Peninsula Malaysia, while the BCI saw increases of 2.1% and 1.5% in Sabah and Sarawak, respectively, during the same period.,” it remarked. – Feb 12, 2022
