As you may have noticed, cement prices are spiking since the beginning of 2016. It’s becoming more and more common to see cement selling for upwards of $120/yard and $350/ton.
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This blog will inform you about why cement prices are rising and what we are doing to keep ready mixed concrete affordable and accessible to all of our customers.
Cement prices are spiking, and the reason isn’t very encouraging.
I’m writing this blog post in response to all the “cement price” questions I keep getting asked. I’m not an expert on cement prices, so the most I can do is give a little bit of explanation and point to some articles that might help you get a better understanding of why cement prices are going up and what’s being done about it.
Why cement prices have spiked:
In order to make cement (or concrete for that matter), you need limestone and clay. To extract these raw materials from the ground, you need to rent or purchase a quarry site (or borrow it from someone who owns one). A few years ago, renting or purchasing a quarry site wasn’t too expensive because there were plenty of them available.
Unfortunately for us, not too many people wanted to rent or purchase a quarry site when these raw materials were at a low price. So, when we needed more of them, there weren’t enough sites available for mining operations to keep up with demand (supply). This has now caused the price of both limestone and clay to go up.
To be informed of the latest cement prices and why they are rising, please visit our blog page.
White Portland Cement is a white hydraulic cement manufactured in accordance with BS EN 197-1: 2012 CEM I 52.5R or 52.5N. This is a dual-purpose product, suitable for both structural and decorative applications. It can be used to produce coloured concrete products such as paving blocks and architectural precast components; exposed aggregate finishes; terrazzo tiles, white render, coloured screeds and grouts.
View full product description
Recommended dosage rates:
**Structural applications:**
White cement inclusion rates of between 1% – 5% by mass of total cementitious content should be used depending on the degree of whiteness required.
**Concrete products/precast applications:**
As a general guide, white cement inclusion rates should be used at between 5% – 20% by mass of total cementitious content depending on the degree of whiteness required.
Cement prices have spiked in the past few months thanks to a combination of factors. We will go through each of these factors and look at what is causing this price increase.
The first factor is the increased cost of fuel which has led to a significant increase in transport costs which has had an impact on the final price. This rise in fuel prices has also led to a knock-on effect with other industry sectors such as the building trade. It is still too early to tell if this will be long term but we are monitoring the situation closely so that we can provide our customers with accurate information.
The second factor is an increase in raw material costs, particularly cement clinker and gypsum as well as steel. The cement industry is reliant on these products and as demand has increased so too have rates. There are also reports of an increase in waste disposal charges which will have an impact on final prices for consumers. These increases are expected to continue for some time yet so it’s important for you to keep up-to-date with changes in your area and plan accordingly when considering projects that require large amounts of cement.
The third factor affecting prices is related to global supply disruption caused by natural disasters and political unrest. These problems have seen a lack of availability for some
The latest figures from the Department of Commerce reveal that cement prices are actually rising across the United States. The price of a metric ton of Portland cement has risen $4.50 over the last month and $9.20 over the last year.
So what is behind the recent rise in cement prices?
There are a number of factors driving this price increase. On a macro level, we have seen an increase in demand for cement as large infrastructure projects such as bridges, roads and railroads have been approved by Congress.
In addition, housing starts have risen over the past several months, fueled by historically low interest rates and pent up demand from consumers who waited out the recession.
For more information on current cement prices, please visit our Cement Price page at www.cementprice.com/us-cement-prices.
A few years back, when the economy was still booming and construction was at a fever pitch, cement prices were at all-time lows. That has changed dramatically in the past year as cement prices have more than doubled in some markets.
In a recent article about how building material suppliers are fighting inflation, the Los Angeles Times reported that cement prices have risen more than 120 percent since late 2007.
Developments in the Chinese economy are partly to blame for the dramatic increase in global cement prices. China’s economy has been expanding rapidly over the past decade, but recently slowed somewhat due to a sharp decline in exports caused by the global economic crisis. The Chinese government has responded by pumping billions of dollars into infrastructure projects such as roads, bridges and high-speed rail networks. China consumes nearly half of the world’s cement and its demand is largely responsible for last year’s spike in prices. In fact, China alone accounted for nearly 60 percent of total global demand for cement last year according to a report released by the Cement Industry Federation of Australia earlier this month.
Cement prices typically reflect the demand for cement and the cost of producing it. When the economy is slow, construction spending falls and fewer homes are built. Cement producers cut their production and the price of cement falls.
But that is not what has happened this time because of a shortage of one key ingredient: fly ash. Because of new environmental regulations, some old coal-fired power plants have been shut down and fly ash is in short supply. So producers have raised the price of cement to reflect their increased costs.
The good news is that when old coal-fired power plants are replaced with new ones that meet today’s environmental standards, there will be more fly ash available at lower prices.