Cement prices showed an uptick in March compared to previous months. After staying muted for three months till February, prices in April have risen past the November peak.
A 50kg bag of cement now sells at between FCFA 6,000 and 6,600.
Cameroon’s National Institute of Statistics last month said the country was witnessing a 7.6 percent rise in commodities, but the prices of some goods have risen more than that.
Economist say it may help cement companies to partially offset the impact of higher input costs while helping them to benefit from improving demand.
According to various brokerage reports based on dealer interactions, the average cement price rose by over 10% per 50 kg bag as of March 22, 2022 on a month-on-month basis. It grew by 11% based on the year-on-year comparison.
According to sector trackers, prices have started to firm up once again in March as the sector enters a seasonally strong period for construction activities. In addition, the pace of awarding road projects by the government has increased.
Analysts believe that cement consumption will be better in the May quarter compared with the previous quarter. Given the likelihood of higher demand, the full benefit of higher cement prices is expected to reflect in the financial performance of cement companies from the June 2022 quarter.
The direct consumers says this makes project delay . “ I had budgeted just enough to complete my house which has being stagnant for years now , upon the price increase , it will be difficult for me to complete the building . In addition to the scarcity of zincs and aluminum. “ says Ngum Sah a civil servant.
Government still strive at cautioning ciment producers on the inappropriate increase in their prices.