As the dry season peaks, signaling another spell of increased construction activities, the price of cement has gone up again, moving up sharply from N1750 per 50kg bag in November to N2200, which represents over 25 per cent price rise in just one month.
Industry experts say the increase is unconnected with the recent removal of fuel subsidy. According to them, haulage of cement is done by heavy duty vehicles that use diesel. They do not expect the subsidy removal to affect the pricing so much.
In Lagos and neighbouring towns in Ogun State, where building of homes has witnessed unprecedented growth in recent years, a 50kg bag of the Dangote Obajana brand sells for N2100, while the imported brand sells for N2200. Lafarge’s Elephant Cement sells for N2100 at the end-chain retail shops.
A retailer of the premium building material in Mowe, Ogun State, Hajia Rukiyat Ajibola, stated that there was high probability of the price of the product to increase further if nothing was done.
“I cannot get new supply because I sold the last supply at between N1750 and N1800, just a few weeks before Christmas. I need funds now to meet my normal supply quantity,” she told reporters.
About 123,989MT of cement was imported in December. The value dropped by 55,324MT from the 179,313MT imported into the country in November.
Cement price skyrocketed, hitting N2900 per bag in May 2011, prompting President Goodluck Jonathan to issue a presidential directive to manufacturers to slash price.
Market leader and maker of Dangote Cement, Dangote Industries Plc, announced a reduction of price of its 50kg bag of cement from N1380 to N1350 wholesale price.
Other manufacturers and importers also announced price reductions which led to a drop in the end-chain retail price making it to stabilise at N1750/N1800 per 50kg bag.
INTERCEM - The world's leading international cement industry conferences.