Dangote Cement Plc, has explained that the recent increase in the price of the commodity is due to low production of the commodity is as a result of turnaround maintenance of some plants and gas shortage.
However, the company said it had released nine million tonnes of cement into the market in a bid to prevent the commodity’s price from soaring.
The hike in cement prices became noticeable in January this year with a bag of the commodity, which sold for between N1,700 and N1,800 previously selling at up to N2,500 by February.
The President, Dangote Group, Aliko Dangote, had said at the company’s Annual General Meeting held in Lagos recently that the firm had not increased cement prices as was being alleged in some quarters.
He was quoted as saying in the statement made available on Sunday, “The recent scarcity in cement product in Nigeria is due to low production between January and March due to the yearly turnaround maintenance of the company’s plants at Ibeshe and Obajana.
“We have released nine million tonnes of cement into the market to stem the tide of scarcity and bring down the price.”
He pledged that as part of efforts to bring the situation under control, the company would also intensify direct-to-consumer deliveries.
According to him, the move is based on the belief that adequate supply of the commodity will lead to a reduction in price.
Don’t you just wonder why the price of an important commodity such as Cement is primarily determined by one company alone? So whenever Dangote Cement is undergoing a TAM we must come to expect price increases??
Article source Thisday