Dangote reverses price cut

Just over a month after initiating a dramatic price cut, Dangote Cement has raised prices again in Nigeria.

The price of 42.5 grade cement has reportedly increased from NGN1150 (US$6.10) to NGN1567 (US$8.37, excluding VAT). This translates to a 35 per cent rise and taking the price higher than the level before the November cut.

Analysts at Morgan Stanley comment that the original decision to drop prices appears to have been prompted by a build-up of stocks that Dangote was unable to sell, citing statements made by Dangote during their 3Q conference call. Today’s new price adjustment could indicate that the near-term problem has been resolved, the research house suggests.