Cement prices raised by 25% for Afghanistan

Northern region players to benefit the most from close proximity.

KARACHI: Pakistani exporters have raised cement prices by 25% to $50 per ton, up from the previous rate of $37 to $40 per ton for Afghanistan, market officials said on Thursday.

Cement exports to Afghanistan currently represent 50% of total exports from Pakistan where major quantities are transported by companies having closer proximity to the north-western border.

KASB Securities senior analyst Shagufta Irshad said the move will have a positive impact on the earnings of these companies in the current financial year.

Pakistan exported 4.7 million tons to Afghanistan during fiscal 2011 and 2.5 million tons during the first six months of fiscal 2012.

Pakistani cement currently dominates in the central and northern region of Afghanistan where major reconstruction activities are going on.

She pointed out that DG Khan Cement has higher exposure to Afghan market than Lucky Cement as both its plants are located in the northern part of the country. Exports to Afghanistan contribute 30% to total exports of DG Khan Cement against 20-25 % for Lucky Cement. Shagufta noted that this increase will bring in a rise of 16 % and 3% in the earnings for DG Khan Cement and Lucky Cement, respectively in financial year 2012.

Published in The Express Tribune, January 27^th, 2012.