Don't Miss


Home   >   Business   >   Industries   >   Glut and Dumping in Cement Sub-Sector worries Analysts

Glut and Dumping in Cement Sub-Sector worries Analysts

By on December 13, 2012

 

A Cement Factory

Following increased importation of cement into the country , which has adversely affected  the sub-sector operations, investor confidence in the market has been on the negative trend as investigations revealed a2.23 percent  average loss in the sector.

This is resulting from the temporary halt of the operations of the Dangote Cement plc in Gboko which operates at a 3millimetres installed capacity , which has constituted a huge challenge for the cement sub-sector market in the Nation.

Analysts believe that money flow pattern into the stocks which is key to determining how viable the sector is in the market, plunged and may follow a southward trend if the investment level continues to show a weak sign in the days to come.

The Management of the Dangote Cement Company believed the closure of the Gboko plant which is one of the major plants in the country, was a strategic move to tackle the issue of a possible development of clinker at the Obajana plant of the Company.

In another update and report the Industry’s sub-sector again revealed that the Northern Nigeria based ASHAKA Cement plc had a poor outlook as it recorded a 1-week loss of -6.4 percent, after a decline of -5.0 percent in last session; the biggest decline experienced in the market for the last two months.

So in a total assessment in recent weeks the major cement companies Dangote, LAFARGE WAPCO PLC,  Ashaka Cement and Cement Company of Northern Nigeria all posted losses in the sector coupled with the recent development of weak investmemts.

With these developments, analysts are concerned about the challenges and recent trends in the cement sub-sector which they believe could pose a threat to Nigeria’s production capacity and dream of becoming a major exporter  of the product.