Brief on Cement Prices
Brief on Cement Prices – 10th April 2018
Recently cement prices have been rising due to the scarcity of cement on the market
Factory Price: 25,000 – 27,000
Wholesalers: 28,000 – 29,000
Retail Price: 30,000 – 31,000
Factory price: 29,000 – 31,000
Wholesalers: 34,000 – 35,000
Retail price: 36,000 – 40,000
Meeting with cement manufacturers and wholesalers
On Tuesday 10th April 2018 I met the 3 cement manufacturers (Hima cement, Tororo cement & Kampala cement) and the wholesalers to establish the exact cause of the increased prices and to devise solutions.
Causes of increased prices raised by the Manufacturers
- Continued power outages affecting Hima cement and Tororo cement causing a reduction in production. Hima has lost 10,000 MT since January 2018
- Increased local demand of cement caused by the growth of the construction sector from 23% to 30% and the major construction projects like Karuma dam & Isimba dam and also some constructions in the oil and gas industry.
- High demand of cement exports from neigbouring countries especially Rwanda and DRC
- Delays in clearance of trucks of clinker at the border by URA
- 10% import duty on clinker that increases the production costs
- The annual closure of cement factories for routine maintenance
- High fuel prices which have also affected transport and distribution
- Government to immediately regulate the export of cement to address the scarcity until the market has stabilized.
- Government to recommend a cap on wholesale and retail prices.
- Fast track the clearance of clinker that belongs to Hima that is held at the border by URA.
- UMEME to sort out the problem of power outages that are affecting production at Hima cement and Tororo cement.
- MTIC to support the call for duty remission on clinker. MTIC to work with the Ministry of Finance to lift 10% of import duty on clinker.
- MTIC to work with Ministry of Energy to fast track securing a mining license for limestone for Hima cement
- New cement factory – Simba cement to open up in June 2018.
- All manufacturers made a commitment which they are to put in writing to double their supply in the next 3 weeks to address the scarcity problem.
- If by Mid May there is scarcity of cement, Government will be compelled to open up the market and allow in imported cement on special duty rate.