Dugongo cement goes up again in Maputo

Login

Register

http://www.clubofmozambique.com/

Dugongo cement goes up again in Maputo

11:21 CAT | 26 Jan 2022

Photo: O País

The price of Dugongo cement has risen yet again. A 50 kg bag which cost 250 meticais in September last year today costs 325 meticais, and some builder’s yards in Maputo city are already seeing a fall in the number of customers.

After increasing by 25 meticais in September and 70 meticais in October, since Monday (24-01), a 50 kg bag of Dugong cement now costs between 375 and 380 meticais.

Since the opening of Dugongo Cimentos, the price of the product at many other producers has fallen, to the joy of Maputo residents.

However, since the Dugongo company started operating in May of last year, the price of cement has increased three times.

In September 2021, the price of a bag of 32.5 cement rose from 230 to 255 meticais, while that of 42.5 cement went from 250 to 275 meticais. Almost two months later, on 25 October, the price of the 50 kg bag of 32.5 cement increased from 255 to 325 meticais (a 70 meticais hike), while 42.5 cement rose from 275 to 340 meticais (up 65 meticais).

Since Monday 24 January, the price of a bag of 32.5 cement has increased from 325 to 360 meticais (up 35 meticais). The 42.5 cement, which used to cost 340 meticais, now costs between 375 and 380 meticais, an increase also of 35 meticais.

These constant rises are already starting to deter clientele at many building material yards in the country’s capital.

“These last two days, sales have been shaky. Customers do actually show up, but either leave without buying or buy a smaller amount than they had intended. That’s why we’re having a bad time with these prices,” said Nelson Mucambe, a Maputo builder’s yard manager.

Mucambe says that it is difficult to understand what is really happening, because “we buy cement from some Chinese and we don’t know the real price that the factory charges to resellers”.

As a result, plans are being postponed pending better financial circumstances.

Builder Elísio David was shocked by the new price. “We couldn’t buy as much as we wanted. Unfortunately, we cannot stop the work, but at this price, building will be much more expensive,” he said.

The current price of cement also constrains makers of cement blocks, whose hands are tied because, whenever they think of increasing the price of their product, customers stop buying. Given the lack of alternatives, they end up maintaining or even lowering prices, in response to customer complaints, which causes them to suffer losses.

“It’s not just the [price of] cement that has gone up. The cost of stone dust, sand and several other raw materials has worsened. Meanwhile, we’re the only ones who haven’t managed to raise the price,” says Gabriel Francisco.

Many of the yards visited by ‘O País’ are committed to selling Dugongo cement because of high demand for the product and its comparatively low wholesale price.

B y Inalcídio Uamusse

Source: O país