Dealers and marketers of cement have predicted that there will be an increase in the price of the product in the coming days.
The marketers were of the view that once the rainy season is over and the dry season sets in, the price of cement would likely go up.
Giving reasons for the projection, the marketers submitted that not much construction work is ongoing due to the rains and demand is low, but this is expected to change when the dry season sets in, and construction activities pick up, which would lead to increased demand for cement.
The price of a 50kg bag of cement has so far stabilized between N7,500 and N8,200, depending on brand and location.
Speaking on prices of the product, Ms. Halimat, a major cement distributor in Ikorodu told Nairametrics that, “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.”
Another dealer, Mr. Idowu, who also sells building materials, said the price of cement is expected to go up as from October or November as construction works resume.
The dealer, who revealed that he has been in the business for about twenty years, added that that is usually how the market works every year, not only for cement, but for other building materials as well.
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.”
However, another cement seller, Mr Enuwa, was of the opinion that the reduced demand for cement was not 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.”
When contacted, an official of Dangote Group who spoke on condition of 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.
“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,” he said.