The average cash price of 50 kgs (qintar/quintal) of the Zliten Al-Ittihad factory (Arab Union Construction Company - AUCC) cement fell to an average of LD 82 today.
It had been trading at around LD 120 recently and there were reports that it had peaked at LD 140 over the last few weeks.
It will be recalled that prices had reached an average of 73 dinars in mid-June – before the electricity crisis kicked-in.
It is believed that the sharp spike in cement prices has pressured the Tripoli government into allowing the AUCC’s Zliten factory to reopen.
However, at the time of publication, there is no news of other factories being reopened.
Forced closure this month of the Alia Cement plants
It will be recalled that earlier this month the state Ahlia Cement company's plants in Zliten and Khoms were forced to close by security forces.
At the time there was conflicting speculation about the reasons for these forced closures. Some reports said Force 112, affiliated with the Joint Operations Force, and Force 77, closed the headquarters of the Ahlia Cement Company, along with the Libda, Al-Marqab, and Arabiya Zliten cement plants, expelling employees and preventing them from entering.
These reports said this action came after the cement company's chairman and CEO refused to cease reserving and dispensing quantities of cement for their own private companies, amounting to approximately 60 truckloads or more daily. That is, due to suspicions of corruption related to cement distribution operations by management.
The opposing viewpoint was that an armed group from Misrata stormed the headquarters of the cement company, in a move aimed at seizing all cement order reservations and selling them in the market to citizens at prices exceeding five times their original price.
The subsidised state cement manufacturing sector in Libya has been the subject of deep corruption for decades. Locally produced cement is often retailed at the same price or even more than imported cement.
Now, it seems the factories were closed purely to save on electricity consumption amidst the acute power shortage crisis.
Tripoli government prioritising domestic over commercial power use
It will be recalled that, as the acute summer power cuts and blackouts continued across Libya, resulting in violent demonstrations that called for the government’s downfall, the Tripoli government implemented through the General Electricity Company of Libya (GECOL), a load shedding policy that prioritised electricity supplies to domestic consumers over commercial and industrial users.
This led to the average end-user price of locally produced cement rising sharply since June.
Cement prices vary slightly in Libya depending on the manufacturing factory and the location of their delivery. The bulky nature of cement and their final delivery point affect final end-user prices.
Cash v debit card prices
Equally, cement prices paid for by debit card are slightly higher than those paid for in cash. This reflects the continuing cash shortage crisis in Libya.
Libya imports cement
It will also be noted that despite the existence of several cement factories across Libya, the country still imports large quantities of cement from several sources, including Tunisia and Algeria.
Security Forces Close Ahlia Cement Plants in Zliten and Khoms
Libya cement prices surge amid ongoing summer power load shedding