Tuesday, August 8, 2017

Cement prices escalate on rising production costs


By Hellen Nachilongo @musanachi60 hnachilongo@tz.nationmedia.com

Dar es Salaam. Cement prices have risen by up to Sh1,500.

Manufacturers attribute high production costs as a reason to price increases

A 50-kilo cement bag is sold at Sh11,500-12, 000, up from Sh9,500-10,500 before July 1.

Twiga Cement commercial director Yves Mataigne told The Citizen recently that costs of raw materials had climbed, necessitating product price increases.

“Since last year, prices of raw materials have risen, prompting us to increase cement prices. “

According to him, the cement business is tough as demand has stagnated in the past five years.

However, the demand is expected to rise by 5 per cent by the end of this December as construction projects are expected to increase.

Some cement wholesalers at Buguruni in Dar es Salaam, prices rose on July 1, when the 2017/18 fiscal year began.

One of them told The Citizen prices for a 50kilo bag ranged from Sh9,500 to Sh10,000, depending on type, in the 2016/17.