Cement prices likely to rise again
Rs15 per bag increase expected in a day or two.
KARACHI:
The price of cement, sources in the construction business said, is likely to rise by Rs10-15 per bag during the next couple of days.
A buyer, while speaking on the condition of anonymity, said his friends in the manufacturing industry gave him a heads-up about the increase in cement prices so he could stock up supplies beforehand.
If implemented, it will be the second increase in cement prices in two weeks. The cement manufacturers in the southern part of the country had already increased prices by Rs15 to Rs400 for a 50kg bag on October 5.
“The news that the cement price will increase is 80% correct,” a source in a construction company, who requested not to be named, said. He added that they have not received any notification from the manufacturers but there are talks in the industry that the price will go up in a day or two.
Responding to a question, he said, the manufactures will not confirm this unless they increase the price. Despite several attempts, no one from All Pakistan Cement Manufacturer Association was available for comment.
At present, the average price for a 50kg cement bag in the southern region of the country ranges between Rs385 and Rs400 depending upon respective brands and the price of the same in the northern region ranges between Rs415 and Rs425.
The Express Tribune reported earlier this month that sales volumes for cement manufacturers had remained low during the past few months. The cement manufacturers have been increasing the prices to compensate for that.
Fears of increase in coal price, high production costs and unimpressive figures for dispatches in recent month could be the factors driving cement prices upward, said JS Global Capital Ltd Analyst Atif Zafar.
The industry imports coal– a main ingredient in cement production– mostly from Australia, Zafar said. There has been prediction of heavy rains and flooding in Australia which might put pressure on coal prices thus force its importers to increase prices of cement. The coal consumption will also increase in winter thus driving its cost up, he said.
Additionally, he said, the production cost for manufactures has increased, pushing them to increase cement prices. He said the number of dispatches for the last few months were not impressive while rains and holidays had also affected sales in September. All these figures could contribute to a price increase, he said.
Published in The Express Tribune, October 15th, 2011.
The price of cement, sources in the construction business said, is likely to rise by Rs10-15 per bag during the next couple of days.
A buyer, while speaking on the condition of anonymity, said his friends in the manufacturing industry gave him a heads-up about the increase in cement prices so he could stock up supplies beforehand.
If implemented, it will be the second increase in cement prices in two weeks. The cement manufacturers in the southern part of the country had already increased prices by Rs15 to Rs400 for a 50kg bag on October 5.
“The news that the cement price will increase is 80% correct,” a source in a construction company, who requested not to be named, said. He added that they have not received any notification from the manufacturers but there are talks in the industry that the price will go up in a day or two.
Responding to a question, he said, the manufactures will not confirm this unless they increase the price. Despite several attempts, no one from All Pakistan Cement Manufacturer Association was available for comment.
At present, the average price for a 50kg cement bag in the southern region of the country ranges between Rs385 and Rs400 depending upon respective brands and the price of the same in the northern region ranges between Rs415 and Rs425.
The Express Tribune reported earlier this month that sales volumes for cement manufacturers had remained low during the past few months. The cement manufacturers have been increasing the prices to compensate for that.
Fears of increase in coal price, high production costs and unimpressive figures for dispatches in recent month could be the factors driving cement prices upward, said JS Global Capital Ltd Analyst Atif Zafar.
The industry imports coal– a main ingredient in cement production– mostly from Australia, Zafar said. There has been prediction of heavy rains and flooding in Australia which might put pressure on coal prices thus force its importers to increase prices of cement. The coal consumption will also increase in winter thus driving its cost up, he said.
Additionally, he said, the production cost for manufactures has increased, pushing them to increase cement prices. He said the number of dispatches for the last few months were not impressive while rains and holidays had also affected sales in September. All these figures could contribute to a price increase, he said.
Published in The Express Tribune, October 15th, 2011.