Pioneer Cement, starting to produce 4,300tpd within this week, would help stabilise cement prices in the domestic market. According to industry sources, Pioneer Cement will start producing 4,300tpd of cement, with the second new line of the company.
The company’s output prior to this was 2350tpd but the new line is set to improve the supply in the market, curbing local prices.
Pioneer Cement during nine months of the current fiscal year exported 105,093t cement to Afghanistan and Middle East. The company’s local sales were around 494,011t during this period. Net sales of the company stood at 599,104t, translating into 108 percent of the capacity.
Cement prices are ranging between Rs 325 and Rs 340/bag and the expansion plans of several companies in the country would certainly help reduce the prices.
Lucky Cement, another company which is already producing 8000tpd of cement, would soon start two new lines, one in Karachi and another in its Pezu plant, which would double its capacity to around 16,000tpd.
The ECC’s decision to provide subsidy of Rs 60 per bag on imported cement, regardless of its origin, allowing unlimited imports from India by sea and land routes, converted voluntary restraint on exports, particularly to Afghanistan, into a ban till further notice, a statement of the association said last week.
These punitive measures have ostensibly been taken to bring down cement prices but are likely to have serious ill-effects on the health of the industry, particularly in the light of doubling of capacity from 21Mt to 42Mt within 18 months, the statement said.