Construction Industry: Cement Prices Raised by Rs55 Per Bag in Punjab, KP

On Wednesday, cement companies in the northern area (punjab and khyber pakhtunkhwa), Pakistan, wholesale cement firms, reported at The News, were the the prices by up to Rs55/bag (or $0.375).

From today (Thursday) this increase will be effective. Prices have not improved in the southern regions (Sindh and Balochistan) and are now much higher than in the northern region. This rise has brought in an average cement price of Rs505-525 for each bag in the north.

Mohammad Ali Tabba, Chief Executive Officer of the Lucky Cement Limited, when contacted said,

“Since start of March 2020, and after approval of the Ordinance, cement demand has recovered up to 90 percent, and in the north region it has recovered full demand and has even achieved 10 percent more over the last year.”

Regarding the price hike, he said that since demand for cement had eroded in first two months (Jan-Feb), while at the same time, three manufacturers including our company had made expansion in their capacities, this pushed the prices to as low as Rs450/bag in north region from earlier Rs550 to 600/bag.

He said, “We cannot say it an increase in prices, but we can call it that the cement sector has reached up to its old price level from where it declined.” He said that the manufacturers have increased the prices in the range of Rs45 to 55/bag. Our company has increased the price by Rs50 in north region.

It is worth mentioning that there is a huge difference in the prices of cement in north and south regions. Average price in south is Rs650/bag, while in north region it is now around Rs505 t0 525/bag.

A cement dealer in Islamabad told The News that the senior companies’ representatives held the meeting and they have decided the price hike. He said that Fauji cement has increased its price by Rs45/bag while all other brands including Lucky Cement, Cherat Cement, DG Khan Cement and other producers in north region have increased the prices by Rs55/bag each. He said, “After this package, the demand for construction materials has increased.”

Similar Articles

Comments

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Advertisment

Most Popular