17/05/2004 13:39
There are two significant changes in the Cyprus cement market for the past few days. On Friday, the Commerce Ministry officially announced the liberalization in the price of cement, while the increased domestic demand will be boosted by the interest expressed by the T/C businessmen. Sources told StockWatch that the additional demand by the occupied territories will be covered with the Cyprus’ cement destined for export.
The delivery of cement in the northern part of the island, where cement is more expensive than in south, is therefore a matter of time. Head of the Commerce Ministry Competition Service and Consumers’ Protection Department, Leontios Pericleous told StockWatch that any goods produced or imported legally by the legal ports of Cyprus may be freely exchanged between the two communities, provided that the EU Regulations are applied. Vasiliko Cements has already requested by the Commerce Ministry to cancel the licenses for the export of cement so as to satisfy the domestic demand.
It is noted that Vasiliko Cement General Manager, Giorgos Sideris had told StockWatch that the Company had requested by the Commerce Ministry to investigate the issue after the recent EU decision to promote the free movement of goods to and from the occupied areas. There are still reservations, however, on whether the cement will be used for military purposes.
Galatariotis: “No lack of cement”
The liberalization in the price of cement will not affect the adequacy of the product in the Cyprus market, CCC officer, Giorgos Galatariotis said. The needs in the occupied territories may be covered by the production of cement in the free areas, which stood at 1.64 tones in 2003. It is noted that in 2003, Cyprus exported 362 thousand tones. According to Mr. Galatariotis, the production capacity of the Cyprus Cement Company amounts to 475 thousand tones.
The consumption of cement in the occupied territories reached 200 thousand tones in 2002 and 225 thousand tones in 2003, while consumption is expected to reach 360 thousand in 2004, due to the increased T/C building activity. A large part of the total cement consumption is covered by a cement unit in Bogazi (Famagusta municipality), while the rest is imported from Turkey. It is noted that the cement unit offers its production in higher prices than that of the free areas.
Building activity continues
In anticipation of the increased T/C demand, the Cyprus cement industry showed a new increase of 1.5% in production for the first quarter of 2004, which reflects the increased building activity. Vasiliko Cement announced recently that its profits showed an improvement in the first quarter of the year.
Mr. Galatariotis, however, anticipates that despite the increase in construction materials, demand will remain stable in the future. In Paphos, the construction of 3 thousand residences is still pending. On the question whether there will be an increase in the production capacity of the Cyprus cement industry, Mr. Galatariotis said that this could be justifiable only if there are developments on the Cyprus issue.
The delivery of cement in the northern part of the island, where cement is more expensive than in south, is therefore a matter of time. Head of the Commerce Ministry Competition Service and Consumers’ Protection Department, Leontios Pericleous told StockWatch that any goods produced or imported legally by the legal ports of Cyprus may be freely exchanged between the two communities, provided that the EU Regulations are applied. Vasiliko Cements has already requested by the Commerce Ministry to cancel the licenses for the export of cement so as to satisfy the domestic demand.
It is noted that Vasiliko Cement General Manager, Giorgos Sideris had told StockWatch that the Company had requested by the Commerce Ministry to investigate the issue after the recent EU decision to promote the free movement of goods to and from the occupied areas. There are still reservations, however, on whether the cement will be used for military purposes.
Galatariotis: “No lack of cement”
The liberalization in the price of cement will not affect the adequacy of the product in the Cyprus market, CCC officer, Giorgos Galatariotis said. The needs in the occupied territories may be covered by the production of cement in the free areas, which stood at 1.64 tones in 2003. It is noted that in 2003, Cyprus exported 362 thousand tones. According to Mr. Galatariotis, the production capacity of the Cyprus Cement Company amounts to 475 thousand tones.
The consumption of cement in the occupied territories reached 200 thousand tones in 2002 and 225 thousand tones in 2003, while consumption is expected to reach 360 thousand in 2004, due to the increased T/C building activity. A large part of the total cement consumption is covered by a cement unit in Bogazi (Famagusta municipality), while the rest is imported from Turkey. It is noted that the cement unit offers its production in higher prices than that of the free areas.
Building activity continues
In anticipation of the increased T/C demand, the Cyprus cement industry showed a new increase of 1.5% in production for the first quarter of 2004, which reflects the increased building activity. Vasiliko Cement announced recently that its profits showed an improvement in the first quarter of the year.
Mr. Galatariotis, however, anticipates that despite the increase in construction materials, demand will remain stable in the future. In Paphos, the construction of 3 thousand residences is still pending. On the question whether there will be an increase in the production capacity of the Cyprus cement industry, Mr. Galatariotis said that this could be justifiable only if there are developments on the Cyprus issue.
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