Cement prices in Pakistan's northern region to advance

Cement prices in Pakistan's northern region to advance
26 April 2019

According to BMA Capital Management Ltd, cement prices in northern Pakistan are expected to increase by PKR15‐20/bag (US$0.10-US$0.14/bag), effective from 1 May 2019, supported by supply adjustments. An analyst's market assessment suggests that the price jump, if sustained, will be followed by another PKR20‐25/bag increase in a phased manner later in May 2019.

The current price range hovers around PKR490‐535/bag (US$3.46-3.78/bag) in the north region, where the 3‐4 per cent increase in price will take cement price back to the levels seen for a short while in early April 2019. In the south prices have remained stable at PKR570‐600/bag.

The cement sector is currently in an expansionary phase, during which 7.25Mta of capacity are expected to be added to the industry supply over the next three months by Maple Leaf Cement, Pioneer Cement and Power Cement.

The market outlook suggests that timing of the supply additions remains a key concern as demand in May-June 2019 is expected to be low given the shorter working hours during Ramadan followed by Eid holidays.

Published under Cement News

Tagged Under: cement prices Pakistan