Fuel Costs Force CEMEX Concrete Price Increase

HOUSTON — Construction costs throughout the United States will continue to spiral upward after concrete supplier CEMEX Inc. announced that escalating fuel costs will force an increase in the price of the company’s concrete products.

Houston-based Cemex, which is one of the largest cement producers in the U.S. market, announced an increase in its concrete prices by $25 per cubic yard in October.

Fuel costs have increased more than 100 percent since December 2006, according to the company. The escalation in fuel costs has placed significant upward pressure on raw materials and transport costs — two of the fundamental cost-structure components for concrete operations.

“Mounting fuel prices have created the need for a ready-mix price increase,” says CEMEX USA President Gilberto Perez.

In a climate of increasing energy costs, other staples across the construction materials market, from steel to asphalt, have undergone significant price increases since 2006.

Steel prices increased almost 40 percent, asphalt prices increased almost 20 percent and aggregate prices increased more than 10 percent, according to industry figures. Lumber is the exception, with prices decreasing during the last several years.

“We have put forth this new, transparent pricing structure that will allow our customers to count on a firm price through January 2010,” Perez says.

Written product pricing quotes prior to October 1st will not be affected by the $25 price increase, according to the company.