Cement manufacturers have raised cement prices by PKR55 per bag in two months which, analysts believe, may compel the Competition Commission of Pakistan (CCP) to intervene, again. Talking to Business Recorder, a cement trader, Muhammad Afzal, said that quota fixation for every district and under-utilisation of capacity are the main reasons for the fresh bullish trend in cement prices.
"Current trend of cement prices may have a negative impact on the government’s efforts to build houses for flood affectees," he said. Cement manufacturers hope that their sales will increase by 20 per cent when reconstruction gets underway. However, another cement trader said that cement manufacturers are operating at 20 per cent capacity and any increase in cement prices reflects collusive behaviour.