Cement prices rise by Rs200 per ton
Cement prices have increased by Rs200 per ton which manufacturers say has been due to rising cost of production.
Cement prices have increased by Rs200 per ton which manufacturers say has been due to rising cost of production.
Representative of the Cement Manufacturers Association, Brigadier Niazi, told The Express Tribune that the price of cement has increased by Rs200 to Rs5,800 per ton. He explained that “fuel and electricity constitute about 60 per cent of the total cost of production and these costs have increased.”
Coal was trading at about $100 per ton in the international market on Thursday, which shows a sharp increase from about $80 per ton back in September 2009.
Besides, the government increased electricity tariffs by 7.6 per cent from July 1. Similarly, General Sales Tax has been increased by one per cent to 17 per cent. Discussing the spiraling cost of production, Niazi said “had the entire burden of higher costs been transferred to consumers, prices would have gone up by as much as Rs40 per bag of 50 kg.”
Niazi said that cement manufacturers are already absorbing huge costs because the cost of production has exceeded revenues for most manufacturers, adding many manufacturers have posted losses over the past two to three quarters.
“At present, only those companies that are exporting cement are profitable, while everyone else is in the red,” said Niazi. Analysts predict the cost can increase further as international fuel prices rise on the back of global economic recovery.
Published in The Express Tribune, July 2nd, 2010.
Representative of the Cement Manufacturers Association, Brigadier Niazi, told The Express Tribune that the price of cement has increased by Rs200 to Rs5,800 per ton. He explained that “fuel and electricity constitute about 60 per cent of the total cost of production and these costs have increased.”
Coal was trading at about $100 per ton in the international market on Thursday, which shows a sharp increase from about $80 per ton back in September 2009.
Besides, the government increased electricity tariffs by 7.6 per cent from July 1. Similarly, General Sales Tax has been increased by one per cent to 17 per cent. Discussing the spiraling cost of production, Niazi said “had the entire burden of higher costs been transferred to consumers, prices would have gone up by as much as Rs40 per bag of 50 kg.”
Niazi said that cement manufacturers are already absorbing huge costs because the cost of production has exceeded revenues for most manufacturers, adding many manufacturers have posted losses over the past two to three quarters.
“At present, only those companies that are exporting cement are profitable, while everyone else is in the red,” said Niazi. Analysts predict the cost can increase further as international fuel prices rise on the back of global economic recovery.
Published in The Express Tribune, July 2nd, 2010.