Asia / Oceania
Taiwanese cement and steel firms shelve price hike plan
May, 07 2012
(Taiwan) -- It is reported that, with a power rate hike to be carried out in three stages, major Taiwan cement and steel firms have decided to shelve their plan to raise prices.
Taiwan Cement announced that its cement prices will remain unchanged in May 2012, as it already has sufficient time to cope with the increased cost.
The government originally planned to hike power rates in one fell swoop, posing heavy pressure on the cement industry, as power fee accounts for 11% of the production cost of cement.
The adoption of the three stage power rate hike program has greatly alleviated the pressure, prompting Taiwan Cement to abort its plan to raise cement prices in May 2012. Other domestic cement prices are expected to follow suit.
An industry insider said that with the cement firms deciding to freeze their prices, pre mixed concrete firms will not raise their prices further.
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