If cement importers are unable to compete with the Nesher Israel Cement Enterprises monopoly, the Ministry of Industry and Trade will reconsider its decision of yesterday forbidding cement importers to charge their Israeli customers less than Nesher’s minimum price. Ministry of Industry and Trade official Reuven Pessach made the announcement today.
As of May 2003, the minimum cement price will be NIS 269 per ton.
Cement importers will, however, be permitted to give bulk discounts, in accordance with the Minister of Industry and Trade cement price controls.
The Ministry of Industry and Trade also decided that if Nesher sells cement at less than the minimum price, the cement importers will also be permitted to sell cement to their customers at up to 2% less than the minimum.
Pessach said that no response had been received yet from the cement importers and Turkish manufacturers to the ministry decision, which had been approved by Antitrust Authority director general Dror Strum. “To the best of my knowledge, the cement manufacturers will abide by the decision,” he said.
Israel current imports cement only from Turkey, through Lev Baron Commodities, after cement imports from Romania and Jordan were halted.
The ministry’s decision means that cement importers will be unable to charge lower prices in order to compete with Nesher, unless Nesher decides to lower its current prices. Nesher is more likely to retain its current prices.
Industry sources claim that the ministry decision will eliminate imports.
Published by Globes [online] - www.globes.co.il - on February 12, 2003