Minister Reports Jamaican Cement Market Stabilisation

• Industry Minister Senator Aubyn Hill announced that complaints from the construction sector regarding cement shortages are declining as market conditions continue to stabilise. Speaking at a post-Cabinet media briefing on Wednesday, Senator Hill explained that the Cabinet analysed the compounding annual growth rate to project future cement demand and consequently approved additional importers to ensure a steady market supply and foster healthy competition.
• While Buying House Company was previously approved in April to meet immediate demands following operational disruptions at Caribbean Cement Company Limited (CCC), three or four other importers have now been approved to bring in varying quantities of cement.
• Jamaica Logistics International Limited was approved to import 100,000 tonnes, Rock Hard 100,000 tonnes, Tank-Weld Metals 60,000 tonnes, Island Concrete Company Limited 60,000 tonnes, and Gore Developments Limited was approved to import 20,000 tonnes, totalling 490,000 tonnes. This short-term, six-month import injection eclipses the entire incremental capacity of CCC's recent Rockfort kiln expansion, which was designed to add 300,000 tonnes of annual output to push total capacity to 1,300,000 tonnes.
• Senator Hill asserted that the supply and demand equilibrium is returning to normalcy, noting that the CCC has increased its imports while the newly approved importers finalise their arrangements to meet local construction needs.
• The shortage was triggered by heavy rainfall and raw material issues that impacted production at CCC’s Rockfort plant. It was further compounded by the high demand for infrastructure projects in the aftermath of Hurricane Melissa.

(Sources: CEMNET & NCBCM Research)