Cement prices surge above ¢80 as cedi depreciation bites manufacturers
The price of cement surge above ¢80 per a 50 kilogramme bag as inputs costs of the manufacturers rise.
This is about 10% increase over the last price adjustment in almost two months ago.
Checks by Joy Business at some retail dealers indicate that the price of cement vary from ¢77 to ¢85 per a 50 kilogramme bag.
Similarly, it varies among the various dealers including GHACEM, Diamond and Dangote. However, the price of Dzata cement is lower
The increase in the price of cement indicates that the cost of construction, particularly building will go up.
This will trigger increase in the price of real estate as well as housing rent across the country; but depends on the location of the building.
Why the increase?
The increase has become possible because of the rising input costs as a result of the depreciation of the cedi to the US dollar.
Some of the materials used in producing the cement are imported, hence the increasing cost of operations.
When the factory price (wholesale price) of a 50 kilogramme of a bag of cement was about ¢59.00, it was based on an exchange rate of about ¢7.60 in June 2022.
Some of the manufacturers also told Joy Business that it has been very difficult to absorb all the rising costs of operations, and therefore there is the need to share some of the burden with consumers.
They also claimed taxes or levies imposed on the raw materials at the ports is too high.
Cement price increases to ¢73 as manufacturers blame cedi depreciation
The price for a 50 kilogramme bag of cement shot up to ¢73 per bag on August 30.
The manufacturers blamed the increment on the free fall of the cedi which has not ceased since then.