17 Sep '07
Since the beginning of 2007 the wholesale cement price in the Kurgan Region has risen 1.5 times, while the retail price has grown 1.25 times, regional department of Federal Antimonopoly Service reports.
In August 2007 the wholesale cement price increased by 20%, compared with the figures of July, over the same period the retail price boosted by 40%.
Regional officials say the price advance stems from cement shortage in many Russian regions. Moreover, there are no cement manufacturers in the Kurgan Region. The consumers within the region opt directly via the Moscow Commodity Exchange, a wholesale supplier or a commercial agent.
The consumer has to bear most of the supply expenses. Besides, the consumer has to deal with the problems concerning rail car lease and motor vehicles usage. Transportation costs account the expense´s largest part which lifts the selling price from 8 to 12%.