It is has been reported that major cement makers in Pakistan have raised prices due to high cost of raw materials especially coal that has surged to around US$140/t from US$90/t in the last six months.
After a PKR20 to PKR25 per bag increase on March 6th 2008, the cement companies have again increased ex factory cement prices by PKR10 to PKR15 per bag now stands at PKR240 to PKR245 per bag. Before this increase, prices averaged at PKR230 to PKR235 per bag.
A cement industry official said that the burden of rising cost of production should be passed on to consumer and cement industry should no longer hold cement prices. He added that further rise is expected in the following days as demand is likely to pick up in the coming months.
However, cement dealers in Karachi believe that it is the cement companies desire to raise domestic prices through hoarding while making profits by exporting cement. JS Research expects that cement companies would further increase their ex-factory prices to around PKR250 to PKR255 per bag in the coming days.