Cement prices in the country has been projected to remain high in 2024 on renewed government focus on infrastructure and construction projects, a Cardinal Stone report has said.
The report titled ‘Nigeria cement rebounding from a tumultuous year,’ noted that with increased budget allocations to critical sectors and ambitious infrastructure initiatives of N1.32 trillion to infrastructure, accounting for 5 percent of total 2024 budget, demand is likely to be stimulated with the industry experiencing a resurgence.
According to the report, cement manufacturers, in response, are
beginning to recalibrate their production strategies in the form of capacity
expansion and improved efficiency to meet the anticipated rise in demand.
The report stated that challenges may persist for cement makers, the outlook for the industry is one of various optimism, with potential growth opportunities emerging amidst the recovery phase.
On the potential price war among cement manufacturers, the report stated that the average cement price would remain high in 2024.
“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,” said the report
Adding that “as players aim to protect their margins from rising operating costs occasioned by still-high
inflationary pressures and strong volatility in the foreign exchange” prices would remain high in the year.
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