The company also noted a fall in retail selling prices of cement in key geographies, most notably in the Democratic Republic of the Congo. Cement prices in the DRC have fallen about 28% on the back of an influx of imports and the entry of a new producer into the market.
More generally, increased cement production capacity in Africa, combined by lower economic growth, has resulted in a fall in retail prices.
“The lower realizable retail selling prices of cement imply lower factory gate prices, which will put pressure on margins in these territories,” the company warned – although the outlook in the DRC may be more positive, the company added. “Pricing in the DRC is expected to normalize once government’s cement import ban in reinstated.”
