Cement prices have again been raised by Rs 10 per bag to Rs 260 in the wake of increasing international demand and low supply in the local market, dealers said on Tuesday. They said that cement companies are getting better price in the international market than the domestic market, and have been receiving huge export orders. Therefore, they are concentrating on export to earn more profit.
The main reason behind this rise in cement prices is believed to be the commodity's increasing demand and soaring prices in the world market, and the manufacturers intend to set the cement prices in line with international prices, dealers said.
They said that cement companies have raised prices by Rs 200 per ton to 4900 per ton on Tuesday from Rs 4700 per ton on Monday. During last one week, it was the second time that cement price were increased by Rs 10 per bag.
"Cement makers once again seem to want to monopolise local market as they had done in January, when prices were gradually raised by Rs 50 per bag to Rs 280 per bag," a leading dealer said. "Production capacity of cement has increased by 9 million tons to 30 million tons within a year span," he said. Although summer is assumed a peak season for cement consumption, no huge demand has been observed in the country and the cement companies might be creating artificial shortage in the market to increase the prices, dealers said.
Cement dealers have demanded of the government and the Monopoly Control Authority to take action against the manufacturers to make them decrease the prices to previous level. When contacted, the spokesman of Pakistan cement manufacturers association (PMCA) did not return the phone call, and later switched off his mobile phone, while Aazaz Sheikh, chairman PMCA cell phone was already turned off.