The Trading Corporation of Pakistan is exploring the possibilities of importing cement to stabilise prices of the commodity in local market, TCP Chairman, Syed Masood Alam told PPI that the matter was still at the stage of 'exploring' the possibilities including identifying the probable markets, the prices prevailing in local and international market and the quantum of cement to be imported.
He said the TCP was considering such plans in view of rising trend of cement price in the country. "This move would bring stability in the cement price like that of sugar," he viewed.
Meanwhile, market experts viewed that there was hike in cement price owing to construction boom in the country and export of cement to Afghanistan and other countries.
Cement industry was witnessing a 20 percent growth in overall demand arising from the housing sector, government's infrastructure works and from Afghanistan and the Middle East.
Currently, there are 24 factories in operation with an annual capacity of 17 million tonnes of clinker. Some 18 million metric tonnes per annum (mtpa) of new capacities are scheduled to start production within the next 24-30 months. A new cement factory takes 30 to 36 months to reach production stage. It is expected that Pakistan's cement production will almost double by the end of 2007.
The present scenario in the Middle East has opened up opportunities of export for Pakistani cement. Pakistan is already exporting cement to Afghanistan.
In March 2005, exports to Afghanistan reached 163 thousand tonnes. This export will increase as the construction and infrastructure activity is gaining momentum in Afghanistan.
One estimate is that demand will exceed five million tonnes in coming years.