PPC fell the most in four months after reporting flat or falling prices in all regions alongside tougher competition in Zimbabwe, Botswana and South Africa.
The shares declined as much as 6.7%, the most since May 26, and traded 5.3% lower at R18.46 as of 2:17 pm in Johannesburg. That extended the year’s drop to 33%, compared with a 1% gain on the FTSE/JSE Africa All-Share Index.
PPC cement volumes in South Africa were flat in the 11 months through August, the company stated on Wednesday. Volumes increased in Botswana and Rwanda and declined in Zimbabawe.
While cement imports into South Africa from Pakistan declined after new duties were imposed in May, increased local competition weighed on domestic prices, PPC said. The company also introduced a promotional price in Rwanda after opening a new 600 000 metric ton plant there in August.
PPC’s expansion into other African countries “remains on track,” the company said. Facilities under construction in the Democratic Republic of Congo, Zimbabwe and Ethiopia are all about 45% complete. Companies including PPC and Lagos-based Dangote Cement are increasing capacity throughout the continent to take advantage to increasing government spending
