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CEMEX USA Announces Nationwide Ready-mix Concrete Price Increase
CEMEX Inc., the nation's largest cement and ready-mix company, announced today that due to escalating fuel prices the company will raise concrete prices $25 per cubic yard nationwide effective October 1, 2008.
"Mounting fuel prices have created the need for a ready-mix price increase," said 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."
Fuel prices have increased 107 percent since December 2006. Producing ready-mix concrete is an energy intensive business and the continued increase in fuel cost has affected the two most important components of the operation's cost structure: raw materials and delivery costs.
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 October 1st. All written quotes prior to October 1st 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.
CEMEX is a growing global building materials company that provides high quality products and reliable service to customers and communities in more than 50 countries throughout the world. CEMEX has a rich history of improving the well-being of those it serves through its efforts to pursue innovative industry solutions and efficiency advancements and to promote a sustainable future. For more information, visit www.cemexusa.com.
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