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‘Cement Prices To Remain High In 2024’

January 10, 2024
in Business
‘Cement Prices To Remain High In 2024’
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http://economicconfidential.com/Bags of Cement

FIRS

‘Cement Prices To Remain High In 2024’

A new report by Cardinal Stone has revealed that cement prices in 2024 will remain high despite a slash in prices from BUA cement in October last year.

The report titled “Nigeria Cement Rebounding from a Tumultuous Year” noted that the year 2023 was challenging for the nation’s cement industry occasioned by the poorly executed naira redesign, which led to cash scarcity, currency devaluation in June, and heavy rainfalls during the third quarter.

For pricing, the report noted that cement prices will continue to remain high in 2024 due to producers seeking to offset operational costs, volatility in the forex market, and high inflation.

However, it projects a rebound in the sector’s performance in 2024 based on the increased infrastructure budget for 2024 at N1.32 trillion, the creation of the Infrastructure Support Fund( ISF) by the Presidency, active implementation of the (AfCTA), increased production capacity, etc.

It further noted that the possibility of a price war between players in reaction to BUA’s price reduction in October 2023 is slim but not impossible.

It stated, “Barring a potential price war between players in response to BUACEMENT’s ex-factory price slash, we maintain that average cement prices would remain elevated in Q4’23E and FY’24E as players aim to protect their margins from rising operating costs occasioned by still-high inflationary pressures and strong volatility in the foreign exchange”

>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : EconomicConfidential – https://economicconfidential.com/2024/01/cement-prices-high/

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