Cement prices increase in northern Pakistan

Cement manufacturers in the northern region of Pakistan have reportedly increased the price of cement to rationalise their profit margin.

As per BMA Capital channel checks, cement prices in the country's northern region have increased by PKR20‐25/bag (US$0.13-0.17), varying between cities. The new price range stands between PKR450‐ 550/bag (US$2.97-3.64).

According to analysts at research house BMA, the price improvement came on the back of a supply adjustment following almost a month of distressed pricing discipline where prices hit as low as PKR420/bag.

However, analysts are not excited on the development and continue to see the recent price increase skeptically amid weak demand trend and rising supply pressures.

Moreover, even if the current price level is sustained, the impact may be diluted as a consequence of the expected increase in cost pressures in the upcoming budget (which includes a possible increase in FED, higher custom duty on import of coal as well as increases in gas and power tariffs).