Nigerian cement prices show signs of stability this week. Major manufacturers now sell their products within a narrow price range. This applies across key markets nationwide.
Mangal Cement, however, offers a slight price advantage. It largely serves northern markets. A 50kg bag of Mangal cement costs ₦9,800. This makes it ₦200 cheaper than Dangote and BUA brands.
This small price difference gains attention. Builders and distributors are interested. This is especially true in areas with high price sensitivity.
Factors Influencing Cement Prices
Cement prices appear stable, yet hidden costs persist. Industry experts highlight several influencing factors. Energy costs are a major component. Manufacturers use much fuel and power. This is due to Nigeria’s unreliable grid electricity. They rely heavily on alternative power sources.
Transportation expenses also drive up costs. Fuel prices are still rising. This impacts raw material movement to factories. It also affects finished products reaching distribution points. This is a nationwide challenge.
Exchange rate changes also impact cement prices. Imported machinery parts are affected. Production inputs face similar issues. Most cement raw materials are local. However, maintenance and spare parts need foreign exchange. This raises operational costs for producers.
Other factors also add to the final price. These include limestone mining costs. Packaging materials are another expense. Logistics expenses also play a role. Consumers ultimately pay these costs.
Market Demand and Competition
Sustained demand supports current prices. Competition among major producers also helps. This keeps prices within a tight range. Large infrastructure projects boost demand. Private real estate development adds to it. Ongoing housing needs ensure steady consumption.
Competition among manufacturers limits sharp price hikes. Companies adjust prices carefully. This helps them retain market share.
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