‘Cement Costs To Stay Excessive In 2024’

A brand new report by Cardinal Stone has revealed that cement costs in 2024 will stay excessive regardless of a slash in costs from BUA cement in October final yr.

The report titled “Nigeria Cement Rebounding from a Tumultuous Yr” famous that the yr 2023 was difficult for the nation’s cement trade occasioned by the poorly executed naira redesign, which led to money shortage, foreign money devaluation in June, and heavy rainfalls in the course of the third quarter.

For pricing, the report famous that cement costs will proceed to stay excessive in 2024 as a consequence of producers searching for to offset operational prices, volatility within the foreign exchange market, and excessive inflation.

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Nevertheless, it tasks a rebound within the sector’s efficiency in 2024 primarily based on the elevated infrastructure finances for 2024 at N1.32 trillion, the creation of the Infrastructure Help Fund( ISF) by the Presidency, lively implementation of the (AfCTA), elevated manufacturing capability, and many others.

It additional famous that the potential for a worth struggle between gamers in response to BUA’s worth discount in October 2023 is slim however not unimaginable.

It said, “Barring a possible worth struggle between gamers in response to BUACEMENT’s ex-factory worth slash, we keep that common cement costs would stay elevated in This fall’23E and FY’24E as gamers purpose to guard their margins from rising working prices occasioned by still-high inflationary pressures and powerful volatility within the overseas alternate”