UPDATE 1-Cemex to raise Mexico cement prices by 5 pct-source
July 5th, 2008 | by admin |(Updates with details, quote, background)
MONTERREY, Mexico, July 4 (Reuters) - Mexico’s Cemex(CX.N: Quote, Profile, Research, Stock Buzz) (CMXCPO.MX: Quote, Profile, Research, Stock Buzz), the world’s No. 3 cement producer, plans toincrease its local cement prices by an average of 5 percentstarting on Monday, a source close to the company said onFriday.
“This increase is due to higher world energy costs and thebig impact on the company’s costs,” the source told Reuters.
Building material distributors consulted by Reuters in thenorthern Mexican city of Monterrey, where Cemex is based, saidthe price of a 110-pound (50-kg) bag of cement will rise toabout 105 pesos ($10.19) from the current 100-peso averageprice.
Cemex, which has operations in more than 50 countries,faces a housing slowdown in its key European and U.S. marketsand is also trying to reduce costs following its takeover lastyear of Australia-based building materials company Rinker.
Mexico represents 16 percent of Cemex’s total annualsales.
Cemex last increased Mexican cement prices in December 2007with an average 10 percent hike. ($1 = 10.3 pesos) (Reporting by Gabriela Lopez; Editing by Jonathan Oatis)
