Has BUA increased cement prices?
Reports from several online blogs suggest BUA Cement, one of Nigerias biggest cement companies has increased ex-depot cement prices. According to some of the reports seen by Nairametrics, BUA cement prices increased from N2,800 per bag to N3,000. This prompted Nairametrics to reach out to sources who provide market intelligence on prices of goods and services. Nairametrics market survey gathered from sellers of the product reveal there are cases of price increases based on stock levels. A reliable source explained it was as a result of the scarcity of the product in the last one week prompting some sellers to increase the price to take advantage of market forces. Another source informed Nairametrics that a bag of BUA Cement now sells for N3,000, the same price as Dangote Cement. Before now, BUA Cement sold at a price lower than Dangote Cement, but with this price increase, both prices appear to be at par. Nairametrics also reached out to a representative of BUA Cement who via a phone conversation denied there was any price increase and that there are no plans to increase its prices. BUA had previously reiterated it had no plans to increase cement prices amidst the tough economic situation in the country. BUA Cement competes directly with Africas largest cement maker, Dangote Cement and often trades jabs on prices, market dominance and growth. Some Nigerians view the competition as beneficial, provided it leads to lower cement prices.