fabulous85:
Good day, ABS pop cement is imported from turkey and sold for 6500 for 40kg. does that mean they are selling at a loss from your analysis?

There are a few trade secret which I did not want to go into.
Do you know that you can get some local manufactures in turkey who would sell pop at $120 per ton?
Do you know that if you do what we call 2 x20" ( it is regarded as 40" even though you have two separate containers. So you end up clearing the two 20" for just a little more.
When it comes to shipping too, doing 2 x20" will cost less than doing two different containers at different shipment.
For the 200k miscellaneous I wrote earlier, if you offload near the port, you can get 2 dyna truck at 20k each to transport it to your warehouse anywhere in Lagos.(that is another savings of about #160k).

sonnie10:


Ok let me explain to you. No iron rod company in Nigeria produce from scratch (iron ore from earth). They either recycle old metals or import refined raw Iron to smelt and fabricate into rods. Unfortunately, the recycling of old metal is not feasible as supply is not always constant and disrupts productivity. So, most of them take the import route. And you already know this is done with dollars. Also, 90% of the companies are own and operated by foreigners mainly from China. Loans have to be paid back in dollars, equipment parts are bought in dollars and profit is sent back home in dollars, so that they can also pay taxes in dollars at their home country (fair enough, because that is where they get the loan from to do the business in the first place).

DSC manufactures rod currently but they don’t work in full capacity!! DSC and Ajaokuta needs real time investors to get them working in full capacity..

Iriruaga100:


DSC manufactures rod currently but they don’t work in full capacity!! DSC and Ajaokuta needs real time investors to get them working in full capacity..

Hardly would any company want to do that. See China is flooding the world with cheap iron ( including raw bars for rods). They have some advantages which give an edge at a very competitive market. They are able to do these things because of low interest, good infrastructure, and cheap and reliable energy in their country. Also there is the issue of their currency being low against the dollar, it’s deliberate. Some say it’s manipulation.
All these would make extracting iron ore in Nigeria and in most other countries unprofitable.
It’s not all about being able to produce, the main question is how much is China selling? If China is selling say #1000 you cannot produce and sell for #1200 locally. Smart businessman would import and sell for #1100

Let's go and break the ground for this foundation, all the men are already assembled. More pictures later.

The fallen tree..........

We then proceeded to cut the tree into pieces of roofing wood, to be used as part of the wood requirements in this house...........

Delivering more building materials, many more are paid for and awaiting delivery........

Starting the foundation excavation........

Foundation excavation works will continue here this morning, more pictures later.

Foundation excavation updates........

Inside the foundation........

More workers arrive for the excavation., 5th trip of chippings arriving .........

sonnie10:


Unfortunately, the present inflation is driven by exchange rate. No importer would sell an item less than the amount he/she bought it. All importers big and small buy dollars for $480 and above now. One way you can figure out the estimate for any imported item is to go to alibaba website and see the current price. Then add cost of importation and clearing.
Do this by using bulk calculation (in 20feet container).
For example POP cement
On the website, 1ton (25 of 40kg bags) some sellers have it for about for $150

One 20feet container is about 700bags which is 28tons.
so, the cost is............................................... $4200 = #2.016m
Shipping is......................................................$2800 =#1.344m
Clearing is.......................................................#1.5M
Mis & inland transport ..............................200k
Total............................................................... #5,060,000

Now divide that figure by 700bags you have #7228.50 per bag of 40kg imported POP cement
Did you know that POP is still being sold for #6000- #6500 for 50kg bag in Nigeria?

This is complete BS many of these materials are manufactured in Nigeria. Are you telling us the dealers selling lost, like the other poster asked about the iron price that's increasing every two days. I believe its just wicked dealers pushing the market to the edge.

kopell:
This is complete BS many of these materials are manufactured in Nigeria. Are you telling us the dealers selling lost, like the other poster asked about the iron price that's increasing every two days. I believe its just wicked dealers pushing the market to the edge.

One dealer or even a group of them cannot influence the price of iron rods in Nigeria. It Is a very competitive market. Different companies are into the business with everyone trying to out do the other in terms of price to get more market share. Even foreigners are involved.
The issue of how dollars affect locally fabricated rods ( no company manufactures rods in Nigeria) has been addressed. But I will add more. As a businessman, would you sell your wares and not be able to buy or import even up to the quantity you had before?
Say you bought one rod at #4200 when dollars was ($1 to #420). So you sold for #4900. Fast forward to today you went back to buy dollars in order for you to import another one and you discover that a dollar is now selling for #485. Which means your cost price is now #4850. What would you do?

sonnie10:

One dealer or even a group of them cannot influence the price of iron rods in Nigeria. It Is a very competitive market. Different companies are into the business with everyone trying to out do the other in terms of price to get more market share. Even foreigners are involved.
The issue of how dollars affect locally fabricated rods ( no company manufactures rods in Nigeria) has been addressed. But I will add more. As a businessman, would you sell your wares and not be able to buy or import even up to the quantity you had before?
Say you bought one rod at #4200 when dollars was ($1 to #420). So you sold for #4900. Fast forward to today you went back to buy dollars in order for you to import another one and you discover that a dollar is now selling for #485. Which means your cost price is now #4850. What would you do?

This your Analysis
Is base on those small players in the market.The big players like Dangote and others that buy 3 to 5 ships at once don’t buy Dollars at those street corners mallams rate price. Even some items that are imported, the more you buy the cheaper it’s becomes. The smaller players team together to buy a ship or half to save as well. You don’t want to know the game they are playing with this dollar thing. let me tell you this for free, no amount of dollars that coming in there that will ever be enough in as much the game remains the same, you will never have enough dollars in that country. Please don’t let us flood this gentleman man page. Oga sypder880 well-done , you’re doing great.

kopell:
This your Analysis
Is base on those small players in the market.The big players like Dangote and others that buy 3 to 5 ships at once don’t buy Dollars at those street corners mallams rate price. Even some items that are imported, the more you buy the cheaper it’s becomes. The smaller players team together to buy a ship or half to save as well. You don’t want to know the game they are playing with this dollar thing. let me tell you this for free, no amount of dollars that coming in there that will ever be enough in as much the game remains the same, you will never have enough dollars in that country. Please don’t let us flood this gentleman man page. Oga sypder880 well-done , you’re doing great.

If you remember, we were talking about recent increase in price of iron rods. I know like most Nigeria you are not aware of the recent devaluation of Naira. Those people you mentioned up until last month were able to get dollars at “official rate” but it is no longer so as we are talking. The Apex bank has started flexible exchange rate policy. So, no more man no man. Everybody is buying whatever price the banks are willing to sell, including the big names you mentioned. That rate is #485 and above . This is the cause of increase in most foreign good prices.

The chippings keep coming in..........

And we bought a 3000 litre water tank to store water on the site.........

spyder880:
The chippings keep coming in..........

Is like this person want take style and do upstairs foundation, just incase. Too much chippings for a boungalow

sonnie10:

Is like this person want take style and do upstairs foundation, just incase. Too much chippings for a boungalow

With a foundation + floor to parapet height of more than 6 metres high, we definitely need a foundation fit for upstairs. This is a bungalow that will be taller than many upstairs.

More pictures of our foundation excavation works here.....

More

We have started concrete blinding of this foundation, we are placing the column reinforcement and casting the concrete after standing the columns on their footing positions..............

More pictures

We had completed the concrete cast of the foundation footings yesterday..........

Then we started laying blocks in the foundation.............

Starting to lay more blocks all over the foundation..........

More pictures

More activities as we keep bringing in more materials.........

kopell:
This is complete BS many of these materials are manufactured in Nigeria. Are you telling us the dealers selling lost, like the other poster asked about the iron price that's increasing every two days. I believe its just wicked dealers pushing the market to the edge.

this is complete market analysis. They're not selling at a loss because they buy in bulk and as such get discounts with other trade secrets. That's why you need to do "boy boy" in business or else the present players will ruin your business and capital.

The fact is that the raw materials full Nigeria but like he said, China is flooding the market with cheaper raw materials so it doesn't make sense to mine the products. This increase in prices of materials is here to stay. There maybe slight difference during the core rainy season but it will not be worth the wait. If you have any project and have the funds, push it with all your might cause inflation will end up eating all your funds

We are almost done with block setting in this site, we're now working on the ground beams for the foundation...........

Carpentry works ongoing for the ground beams today........