Cement Industry reported Gas Prices Rise to $8 per million BTUs
Published By : 08 Jul 2014 | Published By : QYRESEARCH
According to an official source from a cement company, the government has increased the gas prices for the cement factories. The gas prices have been increased to $8 per million British Thermal Units (BTUs) as compared to the previous figure $6. On the other hand, the fuel oil prices have increased from EGP 1,500 to EGP 2,250 per tonne.
The company sources have anticipated the cement prices to rise in the future because of the higher production costs.
Energy prices cause a direct impact on the final prices. Energy represents around 60% of the cement production costs, said the company source. However, the exact reason for the impact of increased energy prices on consumers is not known yet. There is a possibility for the cement prices to get affected by demand and supply too.
There is a huge and persistent deficit in gas supply because it is not easily available in the market. This has reduced the production capabilities as well. The problems faced by the cement factories is not worth the price of its availability, added the source.
There are many cement companies functioning in Egypt that plan to use an alternative source of energy to coal this year. However, the source precluded the names of all these companies reoccurring to importing gas because of high prices for the process. The total value rises up to $ 14m BTUs.