UK hit by cement shortages

UK contractors and domestic retail buyers are both facing steep prices rises and supply shortages for cement amidst a booming recovery in construction activity.

UK distributor, NYEs Building Suppliers, contacted all customers to warn that "there are now issues with cement from all manufacturers. We are working hard every day to maintain supply for our customers but it is tough and will only get worse before we see it get better."

Part of the problem has been a disruption to production activities. According to Rex Nye, NYEs Managing Director, "The shortage is due to factory breakdowns and over-ordering at the same time. One manufacturer's plant broke down in April and others need to have a shutdown in June."

As a result, the building supplier is imposing allocations on all its customers, limiting orders to 30 bags per day for trade customers and five bags per day for retail.

On pricing, the company warned: "Prices are increasing across multiple product groups and some of the increases are sudden and very sharp."

Meanwhile, the Construction Material Price Indices for ‘All Work’ increased by 7.8 per cent on a YoY basis (March 2020 to March 2021), according to the Department for Business, Energy & Industrial Strategy.

However, this aggregated construction material price index hides larger price movements for some specific products and materials, with concrete reinforcing bars prices, for example, rising 19.8 per cent over the same period.