Hima Cement forecasts prices to fall in Uganda

Hima Cement forecasts prices to fall in Uganda
14 June 2018

Nicholas George, Hima Cement Country CEO, has stated that cement prices in Uganda will fall some more as new capacities, such as Hima's 1.7Mta expansion in Tororo, come on-stream.

Mr George said the period of rising cement prices was over. Speaking to the Daily Monitor, he said: "The country was faced with rising cement prices for about one month. But it is over. It was an accumulation of different parameters, all arriving at the wrong time. But with the new capacities in the market, the prices have already come down and we shall see how it goes in the coming months."

Ugandan cement prices remain relatively high compared to Kenya and Tanzania due to several factors. Firstly, the country has a scarcity of raw materials and secondly, as a landlocked country, most grinding plants need to import materials over 1200km to reach their plants and the roads are heavily congested. ICR reported that cement prices had increased by UGX5000-11,000 (US$1.35-2.98) in April 2018 reaching UGX50,000 for a 50kg bag in the capital Kampala.

Hima's Tororo facility is the third cement plant in the southwest region and is located near to the company's Kapchorwa pozzolana raw material resource.

Published under Cement News

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