CEMEX Announces Ready-Mix Concrete Price Increase

CEMEX Inc., Houston, has announced that because of escalating fuel prices, the company will increase concrete prices $25 per cubic yard effective Oct. 1.

Fuel prices have increased 107 percent since December 2006, according to a press release from CEMEX. The cost of fuel has affected two key components of CEMEX’s operations cost—the cost of raw materials and delivery.

“Mounting fuel prices have created the need for a ready-mix price increase,” says Gilberto Perez, president of CEMEX USA. “We have put forth this new, transparent pricing structure that will allow our customers to count on a firm price through January 2010. We are effectively removing all fuel surcharges and taking on fuel price risk through this time.”

While ready-mix concrete prices have dropped, rising energy costs have significantly driven up other building materials since December 2006: steel prices are up 39 percent, aggregate prices are up 13 percent, and asphalt prices are up 17 percent and rising steadily as the price of liquid asphalt has nearly doubled in the last few months.

To give time for customers to prepare for the increase, CEMEX will begin quoting the new prices on Oct. 1. All written quotes prior to that date will not include the $25 increase and will continue to be subject to fuel surcharges for the duration of the project. CEMEX will honor previous written contracts.

More information is available at www.cemex.com.