By: Heba El-Kordi
Cairo - Mubasher: Cement prices have increased in the Egyptian market, going up be nearly 47%, reaching EGP 1,200 per ton.
Market experts have attributed the rise in cement prices to three main reasons, with the military operations in Sinai being the first, alongside the decline in the market supply and the losses by the sector companies last year.
The Sinai 2018 operation aims at terminating the threat of terrorists and militants across the Peninsula, however, the conflict has led to the shutdown of a number of factories.
The surge in cement prices will not last for a very long time as foreseen by the market analysts.
Construction materials analyst at Pharos Research, Mark Adib believes that the rise in cement prices resulted mainly from the losses seen by the market companies especially in the third quarter of 2017, which led the companies to raising its selling prices, seeking higher revenues.
Adib forecasts cement companies to achieve profits margins ranging between 30% and 40% in the second quarter of the 2018, noting that shutting down the factories of the National Cement companies increased the industry woes.
On the other hand, as work is expected to begin soon on the Beni Suef production line in the second half of 2018, this could help increase market supplies and decrease prices.
The state-owned Beni Suef plant will produce 20,000 tonnes per day through 6 production lines, and it is expected to lead to a decline in market prices.
The real estate market still awaits the changing in cement prices, the analyst noted.
