Dangote Explains Why Prices of Cement are Rising
The Group Chief Commercial Officer, Dangote Industries Limited, Rabiu Umar, Monday attributed the rising prices of cement to market forces.
Umar told newsmen that demand has in recent times outstripped supplies, but added that measures have been taken to address the development.
He denied that producers of cement have contributed in the rising prices, insisting that only demand pushes the prices up.
According to him, “We have invested in a new line that has been completed in our Obajana plant. That line is waiting for the power plant for us to start to bring out the cement
“We have a new line now in our plant at Opela in Edo state, that is also going to start operation soon. For the last couple of years, one of our plants in Gboko, former Benue cement, has not worked for almost four years. We have now started that plant, all in a bid to make sure that there is enough production.
“As we all know with every other items, what drives the price is actually demand and supply. Now, as a business, Dangote has not increased price up till this point. Therefore, what has happened is that the forces of demand and supply have been the main driver of what people are talking about, the prices of cement going to extra amounts of money.
“The only way to deal with that is to make sure that you have adequate supply capacity because if you do not produce enough no matter what you do, there will be break in the supply chain and that will always create some opportunity for arbitraging.
“What we are trying to do is to make sure that we increase the supply of the product in the market.”
Umar told newsmen that demand has in recent times outstripped supplies, but added that measures have been taken to address the development.
He denied that producers of cement have contributed in the rising prices, insisting that only demand pushes the prices up.
According to him, “We have invested in a new line that has been completed in our Obajana plant. That line is waiting for the power plant for us to start to bring out the cement
“We have a new line now in our plant at Opela in Edo state, that is also going to start operation soon. For the last couple of years, one of our plants in Gboko, former Benue cement, has not worked for almost four years. We have now started that plant, all in a bid to make sure that there is enough production.
“As we all know with every other items, what drives the price is actually demand and supply. Now, as a business, Dangote has not increased price up till this point. Therefore, what has happened is that the forces of demand and supply have been the main driver of what people are talking about, the prices of cement going to extra amounts of money.
“The only way to deal with that is to make sure that you have adequate supply capacity because if you do not produce enough no matter what you do, there will be break in the supply chain and that will always create some opportunity for arbitraging.
“What we are trying to do is to make sure that we increase the supply of the product in the market.”
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