The current cement price in Malaysia has been hiked due to increases in the cost of raw materials, especially coal in the international market, says Sharuddin Omar Hashim, Cement Industries of Malaysia Berhad (CIMA).
Coal prices have escalated by 30-40 per cent of the cost of cement production, which has necessitated the final product price rises.
"Coal prices were previously in the range of US$60/t to US$70/t, but have now increased to US$200/t and could possibly reach up to US$400/t," Hashim added.
"The ban on exports from Indonesia to other countries, as well as the Russian-Ukraine conflict, have caused difficulties in obtaining coal supplies, thus causing the prices of raw materials to be high."
In addition, cement producers have seen the price of other raw materials for cement production rise following the pandemic, apart from congestion problems in logistics and distribution.
