Posted February 15, 2018 10:24:00 The cost of cement is increasing by around a quarter of a pound a year.
The average cost of a kilo of cement in Australia is $3.28 a kilogram.
The cost of 1 tonne of cement at the major cement producer in Australia, MSC, is around $6.65 a tonne.MSC chief executive David Lister said the cost of using cement in the industry has been “staggering” over the last decade.
“We’ve got a major market that has been growing in Australia for 20 years and cement’s been a major part of that growth,” he said.
“There’s a lot of cement being made and cement being used in Australia that’s being made cheaply overseas and I think that’s going to continue.”
Mr Lister was speaking to reporters after a briefing on the cement industry at the ANU Research School of Geography.”MSC is going to be using a lot more cement in its construction work because we’re going to have a greater capacity to produce cement in our market,” he told reporters.
“The cost is going up quite a bit and we think that will keep happening.”
He said the Australian economy was seeing a surge in cement use in the construction industry.
“It’s a pretty exciting time,” Mr Lister told reporters, noting cement use had been on the rise for a number of years.
“But we’ve seen this in recent years.
There’s been some great activity around cement in construction in the last year.”
Mr Bong is also concerned the increase in cement prices could put jobs at risk.
“Cement companies are in the business of building a factory, but if we see that they’re having to increase their prices to meet a demand that’s been increasing in the country, that’s not good for the jobs,” he explained.
“That’s not a good thing for the country.”
He added the government should provide more funding to cement producers to help them survive.
“I think they need to have some funding, but they need the ability to grow their business in a way that makes them sustainable,” he concluded.