GHACEM to reduce price of cement if freight costs fall – M.D

Local cement producers, GHACEM has vowed to adjust the price of its cement products if the cost of raw materials and freight costs witness a reduction in the coming weeks.

According to the company, it is committed to the development of the country, despite several interventions made already in the past years.

Speaking to Joy Business, Managing Director of GHACEM, Stefano Galini hinted that the recent hike in the price of cement is as a result of the high cost it incurred during production.

The cost of cement went up marginally in February this year in the retail market as a result of external factors and rising cost of raw materials.

Mr. Galini said the situation has affected its profitability due to the many interventions aimed at cushioning consumers from paying the full price of the commodity.

“We have been exposed to many high rising costs of raw materials, freight and other components in the production of our cement products for the past seven to eight months, such that we have to take care of it in order not to pass it over to the consumer, looking at the economic situation.”

“However, let me say we have a commitment to adjust downwards the price if the cost of freight is reduced. For us, other raw materials can be sourced at cheaper prices” he noted.

He further assured that engagements are ongoing with the Ghana Port and Harbours Authority to address some concerns with port handling charges, which also add on to the cost of production of the company.

Source: myjoyonline.com

Good news to contractors and those who have plans if putting up a building. The price of cement as it stands today is between 50 to 55 cedis depending on the brand. Reduction on the price will mean house rent will be low and price of building materials too

GHACEM has always been exploiting the market all over these years since it was the major producer of cement in the country. It price begun to fall when competitors like Diamond Cement, Dangote and recently Zata Cement came into the market. We understand the price of raw materials might have shot up as a result of economic flactuations… but their pricing is too much.

GHACEM thinks they are Smart. Why didn’t they consider reduction of the prices of their products long ago.
They intend doing this since they consider ZATA cement To be threat to their market.

GHACEM has done well but let the reduction not be so slim that we would wish the prices remaind the same.

Some of us are wondering if we can ever build a single room in the future as the price of cement is so high. Let other cement producers follow suit

If u can clearly remember, there was a time in Ghana when GHACEM can increase the price of their product twice or three times in a month. All because they were the market giant then. When Dangote came into the scene, they were lobbying that Dangote should not sell his product in the Ghanaian market. But authorities did pay attention to them. U know why, Dangotes’ cement was the same 42.5R just as theirs so customers begun switching to buy his as compared to GHACEM. When GHACEM was selling at 40.00ghc, Dangote was selling at 35.00ghc. Just consider the difference.
This is how they behave when they see threats coming.

Basic Economics taught us that when the prices of raw materials is high, the cost of production will increase thereby resulting in the high price of the product. What can they do if they are producing at higher cost? The cement will surely be expensive. They have to work on the supply of raw materials in the production of some goods so their prices won’t be that high. I hope the freight cost falls soon so I can start buying some GHACEM for my building at a lower price. :blush:

And the same Economics taught us that, the higher the price, the lower the quantity demand. And the lower the price, the higher the quantity demand. So alternatively, a rational consumer will always buy at a lower price for a higher quantity. Hence, both products are of the same grade thus 42.5R.

They are scared of the competition that’s why the are pleading for the fall of freight to reduce prices, the are cement in Ghana less than gravel with same or more raw materials,like the Sol cement it cost less and works good, they should just source for lesser prices in the raw material because reducing freight will also affect port authority

This guys are just trying to play around our heads. They don’t want to be seen as if they are the one hiking the price of their products.
Rather, they want to affiliate it to economic factors. Chaiii…we know lahh…