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RE: Cement Pricing for January, 2006?

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Ken,
I follow the market to a degree. Attached is a link to an interesting article about the Colorado cement supplies.
http://www.bizjournals.com/bizspace/denver/local_column/?story_id=1164662

With 3 major kilns in Colorado and another in southern Wyoming, Colorado has not been adversly effected as much as some other states. It is intersting that all of the kilns in Colorado are owned either by a Mexican (Cemex) company or a Swiss (Holcim) company. But that is a national trend with cement and concrete. The US has a very high tariff on imported cements. I belive the imported Mexican cement has a 50 to 80% tarriff.

The Florence Holcim cement plant was the one that was off line in September. The September shutdown was not scheduled and came after they expanded the capacity of the plant.

New kilns are being constructed in Missouri and in Nevada. I am sure that there are others with such a high national demand. One of the issues is that the heat required for the kilns has the potential to cause air polution.

National projections that I have read show an increase in cement demand from 2005 to 2006 of 15-18%. I am not sure what the Colorado projections indicate, but they can't be too far from the National trend.

Regards,
Harold Sprague


From: "Auge, Ken" <Ken.Auge(--nospam--at)dot.state.co.us>
Reply-To: <seaint(--nospam--at)seaint.org>
To: <seaint(--nospam--at)seaint.org>,<spraguehope(--nospam--at)hotmail.com>
CC: "Bieber, Gustaf" <Gustaf.Bieber(--nospam--at)dot.state.co.us>
Subject: Cement Pricing for January, 2006?
Date: Tue, 27 Dec 2005 13:49:12 -0700

Please update me as to the latest price trends for Cement.  Any more
changes for the Colorado market?
Thanks,

Ken Auge
Contracts & Market Analysis Branch
Engineering Estimates and Market Analysis Unit
Engineer-In-Training III
Colorado Dept of Transportation
4201 E Arkansas
Denver, CO 80222
Tel: 303-757-9860




-----Original Message-----
From: Harold Sprague [mailto:spraguehope(--nospam--at)hotmail.com]
Sent: Monday, September 26, 2005 4:26 PM
To: seaint(--nospam--at)seaint.org
Subject: RE: Concrete pricing

Cement is the ingrediant driving price.  Most concrete in the US is
batched
from local cement kilns.

The demand on the Front Range has been particularly high recently.
Holcim (
a major cement kiln) shut down recently due to some problems with their
main
kiln.  This cut cement production (already strained) in half for about a

week.  Holcim was rationing cement to ready mix plants.

Cements on the world market are being consumed by China.

Low supply of cement and high demand of concrete have jacked prices up.

Regards,
Harold Sprague





>From: "Paul Feather" <pfeather(--nospam--at)SE-Solutions.net>
>Reply-To: <seaint(--nospam--at)seaint.org>
>To: "SEAOC List" <seaint(--nospam--at)seaint.org>
>Subject: Concrete pricing
>Date: Mon, 26 Sep 2005 14:23:22 -0700
>
>Anyone have any insight on concrete pricing and / or the reason for
high
>pricing in Colorado?
>
>
>Paul Feather PE, SE
>www.SE-Solutions.net
>pfeather(--nospam--at)SE-Solutions.net

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