Expect Hike In Cement Price During Dry Season – Distributors Tell Nigerians

Cement distributors in Lagos have stated that prices of the commodity might rise to levels seen earlier in the year during the next dry season when demand increases.

A review of prices across major cement distribution outlets reveals that prices have remained stable in the past four months following intervention from the federal government and the National Assembly. The price of a 50kg bag of cement ranges from N7,500 to N8,200.

Speaking on prices of the product, Ms. Halimat, a major cement distributor in Ikorodu said, “Now, we sell Elephant cement at N8,200 per bag and that’s the price for like two to three months now. No big difference between the price for Dangote and Elephant Cement for some time. I think it’s because of government intervention and the rainy season. Normally, demand is low during the rainy season as most construction work stops.”

Ms. Halimat’s views were confirmed by Mr. Idowu, who not only sells cement but also general building materials. He said that although prices are stable now, they are expected to rise when the dry season comes, and construction work picks up.

He said, “The drop in demand does not only affect cement but building materials in general but as construction works begin from maybe October or November, we’ll begin to see prices increases- that is how the market usually works but the one early this year was shocking and unexpected. I have been in this business for almost 20 years and I’ve not seen such a quick increase in cement prices. We have learnt now.”

N8,000 cement prices are not still cheap

However, another cement seller, Mr Enuwa disagreed that reduced demand for cement was due to the rainy season. According to him, reduced demand was caused by an increase in prices beyond the reach of average people to embark on large scale projects.

He said, “N8,000 for 50kg of cement is not cheap and that is not a stable price. How many people can build a house or any project at that price? We were selling cement around N5000 per bag this time last year and it increased to around N12,000 but dropping to the current price, that is not stable.”

He explained that the high prices of cement might deter developers from building at the regular full scale expected during the dry seasons.

Speaking on the cement price projection for the dry season, an official of the Dangote Group who requested anonymity said there is no reason to believe the opinions of cement distributors on the projected price increase.

According to him, prices are determined by different factors, not only demand, and it is difficult to project with certainty any increase in prices.

In his words, “What the distributors are telling you is what they think. It doesn’t mean it will happen. I cannot say for certain what will happen to cement prices when the dry season comes. It depends on different factors, and we have no control over some.”