More Articles from
Cement prices in Jordan to rise on tax and demand surge- newspaper
26 February 2017
Cement prices in Jordan are expected to rise by around three dinars ($4.2) per tonne following a government decision to raise the sales tax and an expected surge in demand, a Jordanian newspaper reported on Sunday.
With the government last month reinstating 16 per cent sales tax on cement after cancelling a previous decision to reduce it to eight per cent, customers have increased purchases to build stock in anticipation of a price rise, Arabic daily Addustour said, quoting Mansour Al Banna, Chairman of Jordan’s Cement Traders’ Association.
“Cement stock drawdown has swelled to around 8,000 tonnes a day in February from nearly 6,000 tonnes a day in January,” Al Banna said.
“Because of the government decision, we expect cement prices to increase by around three dinars per tonne,” he said, adding that prices are expected to rise further on projected surge in domestic demand after March when the government and investors will announce new projects.
Jordan has six cement plants, including three owned by Saudi investors, with a combined output capacity of around 7.5 million tonnes per year against an average annual demand of nearly 4.5 million tonnes.
© Zawya Projects News 2017