When Should You Fix Cement Prices, and When Should You Float?

Fix or Float? Making Smarter Cement Pricing Decisions

Price certainty is powerful, but flexibility has its place too.

In volatile markets, the decision to fix your cement price or stay linked to a floating index can impact profitability, planning, and commercial performance.

So how do you decide?

Let’s break it down.

When to Fix

You may want to fix your cement price when:

• You’re signing a long-term project or tender

• Your margin is locked in, and price movement puts it at risk

• Your internal stakeholders (finance, procurement, or the board) demand certainty

• You’re managing complex multi-party supply agreements

Fixing your price with a swap agreement allows you to set your budget, and stick to it, even when the market moves.

When to Float

You may want to stay on a floating (index-linked) contract when:

• You expect market prices to fall

• You want to stay flexible in short-term supply

• You’re in early stages of negotiation and want to stay responsive

• You’re purchasing spot or seasonal volumes

Floating with the index keeps your pricing aligned with market conditions, which can be an advantage when market movement is in your favour.

Fixing Doesn’t Mean Losing Flexibility

Many assume fixing a price means committing to a new supplier or rewriting contracts.

But with a swap agreement, you can fix the price exposure without changing the physical delivery. That means:

• You still buy and sell as usual

• Your swap runs quietly alongside the contract

• You gain certainty, without losing control

How LMX Helps You Choose

At London Mineral Exchange, we don’t just offer pricing tools — we help you decide how and when to use them.

We’ll help you understand:

• What the market is doing

• What your exposure looks like

• What impact fixing (or not fixing) might have

Then we’ll build a tailored strategy based on your priorities, not just the index.

Conclusion

Price certainty is a tool, not a rule.
Fix when it makes sense. Float when it works for you.
We’re here to help you know the difference.