Local cement manufacturers on Thursday have raised the prices of cement by Rs 10 per 50kg bag in the wake of its rising export orders, dealers said. After this recent upsurge, average quality cement is being sold at Rs 240-245 per bag as previously sold at Rs 230-235 per 50-kg bag.
While dealers are selling the prime quality commodity at Rs 255 per 50-kg bag against Rs 245 per bag previously in the domestic market. Dealers said that cement exporters are looking for new opportunities to export cement, as a result local market is being affected.
They said that after the exploration of new markets for cement export, including India, manufacturers are intending to fix cement prices in line with export rates in the domestic market. Although, the production capacities of the local cement companies have increased during last one year but due to huge export orders, they have failed to fulfil the local demand, they added.
Dealers said that on Thursday some local manufacturers have announced to move up cement price by Rs 200 per ton to Rs 4,550 per ton ex-factory price, previously stood at Rs 4,350 per ton. Some cement manufacturing companies have officially announced the new rates, while some companies have just informed us over the phone, said a leading dealer, Shahzad Ahmed.
He said that summer is believed the peak season for construction activities every year, adding that currently, cement demand has spurred, subsequently, bringing its price up in the local market.
"We are expecting that the prices of cement will not further rise in the future due to high competition in the local market," he added. This will not put a negative impact on the sale of cement or its demand in the near future, he said. In last January, the manufacturers had also raised the prices of cement from Rs 220 to Rs 280 per 50-kg bag on the pretext that cement companies are selling cement under cost.