{"id":557534,"date":"2021-09-22T03:59:37","date_gmt":"2021-09-22T03:59:37","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2021\/09\/22\/building-materials-distributors-want-cement-supply-cuts-to-be-scrapped\/"},"modified":"2021-09-22T03:59:37","modified_gmt":"2021-09-22T03:59:37","slug":"building-materials-distributors-want-cement-supply-cuts-to-be-scrapped","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2021\/09\/22\/building-materials-distributors-want-cement-supply-cuts-to-be-scrapped\/","title":{"rendered":"Building materials distributors want cement supply cuts to be scrapped"},"content":{"rendered":"

<\/a> Some building materials companies aren\u2019t happy about the cement <\/strong>supply cuts:<\/strong> Sellers of building materials are planning to lobby Egypt\u2019s competition watchdog to scrap cement production cuts put in place earlier this year as rising prices put distributors under pressure. Ahmed El Zeini, head of the building materials division at the Chamber of Commerce, tells us his group plans to meet the Egyptian Competition Authority (ECA) with a view to convincing it to reverse the cuts, which were introduced in July<\/a> to pull cement manufacturers out of an oversupply-driven tailspin. The story was first reported by Al Mal<\/a>.<\/p>\n

Prices are on the rise:<\/strong> Local cement prices have risen 20% between January and August, reaching EGP 900 a tonne by the end of August, according to official figures (pdf)<\/a>. A tonne of cement sold for around EGP 750-850 when the cuts were introduced in mid-July, but according to El Zeini prices have risen by around EGP 200 to EGP 950-1,100 over the past two months.<\/p>\n

The system of production quotas was <\/strong>green-lit by the ECA<\/a><\/strong> to bail out manufacturers<\/strong> in an industry marked by far more production capacity than there is market demand. The supply glut had forced several companies to suspend operations and left others on the brink of exiting the market. All 23 companies operating in Egypt have agreed to cut production by more than 10% until July 2022 in a bid to ease the supply glut and lift prices.<\/p>\n

The cement industry <\/strong>isn\u2019t as convinced<\/a><\/strong> that the cuts are having enough of an impact on prices<\/strong>, with some saying that it is still too early to assess the market and others threatening to withdraw from the quotas if prices do not go higher.<\/p>\n

The reduced supply of cement is having an impact on transportation costs for distributors of building materials<\/strong>, which El Zeini tells us have risen from EGP 45-110 per tonne to EGP 60-150. This is because trucks are having to wait for 2-3 days to fill due to the production caps, he says.<\/p>\n","protected":false},"excerpt":{"rendered":"

Some building materials companies aren\u2019t happy about the cement supply cuts: Sellers of building materials are planning to lobby Egypt\u2019s competition watchdog to scrap cement production cuts put in place earlier this year as rising prices put distributors under pressure. Ahmed El Zeini, head of the building materials division at the Chamber of Commerce, tells […]<\/p>\n","protected":false},"author":1,"featured_media":557535,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7513],"tags":[9024,1002,549,72],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-557534","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-basic-materials","tag-basic-materials","tag-cement","tag-egyptian-competition-authority","tag-enterpriseam","wpautop","entry"],"acf":{"mongo_id":"0cb77b7a-0811-409a-b777-f2643715c4d2","is_powered_by":true,"story_type":"1","photo_url":"https:\/\/ent.news\/2021\/9\/310.jpg","photo_position":"above","related_issue":[557524],"teaser":"","voice_url":""},"yoast_head":"\nBuilding materials distributors want cement supply cuts to be scrapped - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2021\/09\/22\/building-materials-distributors-want-cement-supply-cuts-to-be-scrapped\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Building materials distributors want cement supply cuts to be scrapped\" \/>\n<meta property=\"og:description\" content=\"Some building materials companies aren\u2019t happy about the cement supply cuts: Sellers of building materials are planning to lobby Egypt\u2019s competition watchdog to scrap cement production cuts put in place earlier this year as rising prices put distributors under pressure. 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What\u2019s the plan? Cement producers would reduce\u2026","rel":"","context":"In "SPEED ROUND: BASIC MATERIALS"","block_context":{"text":"SPEED ROUND: BASIC MATERIALS","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round-basic-materials\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":566665,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/07\/06\/cement-industry-is-finally-getting-a-lifeline\/","url_meta":{"origin":557534,"position":1},"title":"Cement industry is finally getting a lifeline","author":"enterpriseam admin","date":"6 July 2021","format":false,"excerpt":"Is the government finally stepping in to rescue the cement industry? Cement producers were given the greenlight to cut production by at least 10% by the Egyptian Competition Authority (ECA), according to documents seen by Reuters. 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But Lafarge Egypt says there are signs market demand is starting to recover, with CEO Solomon Baumgartner-Aviles now projecting a 7% rise in sales this\u2026","rel":"","context":"In "Basic materials"","block_context":{"text":"Basic materials","link":"https:\/\/enterpriseam.com\/egypt\/category\/industries\/basic-materials\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2021\/11\/558.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":548306,"url":"https:\/\/enterpriseam.com\/egypt\/2022\/08\/03\/cement-producers-welcome-another-year-of-production-quotas-and-a-slow-ramp-up-of-market-supply\/","url_meta":{"origin":557534,"position":4},"title":"Cement producers welcome another year of production quotas \u2014 and a slow ramp up of market supply","author":"enterpriseam admin","date":"3 August 2022","format":false,"excerpt":"Cement production quotas are sticking around for another year: The Egyptian Competition Authority (ECA) has heeded cement companies\u2019 calls to leave cement production curbs in place for another year \u2014 but will allow output to rise as demand picks up, Ahmed Shireen Korayem, head of the cement division at the\u2026","rel":"","context":"In "Industry"","block_context":{"text":"Industry","link":"https:\/\/enterpriseam.com\/egypt\/category\/industry\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2022\/8\/124.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":646920,"url":"https:\/\/enterpriseam.com\/egypt\/2024\/10\/03\/cement-production-cut-extended-again\/","url_meta":{"origin":557534,"position":5},"title":"Cement production cut extended again","author":"enterpriseam admin","date":"3 October 2024","format":false,"excerpt":"The cut was initially introduced for a one-year period in 2021","rel":"","context":"In "Manufacturing"","block_context":{"text":"Manufacturing","link":"https:\/\/enterpriseam.com\/egypt\/category\/industries\/manufacturing\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2024\/10\/261.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/557534","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/comments?post=557534"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/557534\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/issue\/557524"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media\/557535"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=557534"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=557534"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=557534"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=557534"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=557534"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}