Cement Prices Increase by 20% in Ethiopia

(HornTrade) – The price of cement on the retail market in Ethiopia has seen a 20% increase following months of persistent decline. The price of cement ,with the exception of the products of Derba Midroc Cement,  rose from 225 birr per quintal to 280 birr retail. The reason behind the increase in the price is unknown according industry operators.

The increase could be related with Mugher Cement, one of the largest cement producers, closing its factory for maintenance according to sources. With the factory being closed for maintenance retailers are taking advantage of the decrease in supply claimed Mugher officials. 

It is to be remembered that Derba MIDROC, Ethiopia further lowered its wholesale price for cement to 153 a quintal according to sources.
The entrance of Derba into the cement market early this year has been accompanied by an aggressive marketing strategy which has intensified the competition in the sector.

Two of the largest cement factories, Messebo and Mugher, have began exporting cement following the decline of demand on the domestic market

Messebo Building Materials Manufacturing SC initiated export efforts following the drastic fall of cement prices to 230 birr from 500 birr following the entrance of new producer Derba selling for 170 birr last month.

Messebo acquired the permit to export cement some months ago due to the fall in prices and the sudden drops in domestic demands for cement.

State operated Mugher Cement Factory which was unable to meet 43% of target sales in the past two quarters has also resorted to exports to Kenya, South Sudan and Djibouti according to sources.

Source: Capital

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