CAIRO, Feb 18 (Reuters) - The trial of 20 Egyptian cement company executives on price-fixing charges began in Cairo on Monday but after a brief procedural session the court adjourned until March 10.
The 20 executives, who did not appear in court, face charges of conspiring to fix prices in the local market in the first case of its kind under a three-year-old anti-monopoly law.
The firms include Suez Cement SUCE.CA, Misr Beni Suef MBSC.CA, Misr Qena MCQE.CA and Torah Cement TORA.CA.
The government filed accusations of anti-competitive practices against them in October after a 14-month probe by its own investigators, saying they agreed on prices and how to share out the market for Portland cement in 2005 and 2006.
Rising local cement prices drove the Ministry of Trade and Industry to introduce an export duty on cement at 65 Egyptian pounds ($11.84) a tonne in February 2007. It raised the duty again to 85 pounds a tonne in August.
The new anti-monopolies commission is now investigating the Egyptian steel sector, which is dominated by the Ezz Group ESRS.CA IRAX.CA of senior ruling party official Ahmed Ezz.
On Monday shares in Suez Cement were 2.2 percent up at 59 pounds, while Misr Beni Suef inched 0.2 up to 116 pounds and Misr Qena rose 0.8 percent by 1128 GMT. ($1 = 5.49 Egyptian pounds) (Writing by Wael Gamal)
Source from http://www.reuters.com/
Quoting from [smelly cat]:CAIRO, Feb 18 (Reuters) - The trial of 20 Egyptian cement company executives on price-fixing charges began in Cairo on Monday but after a brief procedural session the court adjourned until March 10.
The 20 executives, who did not appear in court, face charges of conspiring to fix prices in the local market in the first case of its kind under a three-year-old anti-monopoly law.
The firms include Suez Cement SUCE.CA, Misr Beni Suef MBSC.CA, Misr Qena MCQE.CA and Torah Cement TORA.CA.
The government filed accusations of anti-competitive practices against them in October after a 14-month probe by its own investigators, saying they agreed on prices and how to share out the market for Portland cement in 2005 and 2006.
Rising local cement prices drove the Ministry of Trade and Industry to introduce an export duty on cement at 65 Egyptian pounds ($11.84) a tonne in February 2007. It raised the duty again to 85 pounds a tonne in August.
The new anti-monopolies commission is now investigating the Egyptian steel sector, which is dominated by the Ezz Group ESRS.CA IRAX.CA of senior ruling party official Ahmed Ezz.
On Monday shares in Suez Cement were 2.2 percent up at 59 pounds, while Misr Beni Suef inched 0.2 up to 116 pounds and Misr Qena rose 0.8 percent by 1128 GMT. ($1 = 5.49 Egyptian pounds) (Writing by Wael Gamal)
Source from http://www.reuters.com/
When there is a huge demand, these cement companies form a cartel . They usually match the price with the import price though the local production cost is less. It happens in India, Russia also.
Really The price of production is much less than many other countries.also,these factories get cheap electricity and many other cheap services from the government and we shouldnt link the price of exporting with the price in the local market as the standards of living differs ,so the comparison will be very unfair.I advise all countries that turns to capitalism to provide cheap services for their peoples .For example,if they were going to sell a factory,part of the production should be suitable for the standard of living whether this factory is going to export or not otherwise the country raise the standard of living of people.