Cement prices declining in Pakistan

Cement prices in the northern region of Pakistan are starting to soften on account of various reasons observed the local research house Intermarket Securities Ltd.

Cement prices in the northern region have declined from its recent peak of PKR535/bag (US$3.46) (December 2019) to below PKR450/bag in some markets. The main reason behind this slide is reduced demand in the winter season while new capacities have been added rapidly (three new units of cumulative 8.5Mta added in the north in the past two months).

Price competition is thought to have been instigated by some of the large players trying to increase their market share, according to local analysts.

As a result, cement prices in Peshawar, Islamabad, Rawalpindi, Lahore, Chakwal and Faisalabad are hovering in the range of PKR420-490 per bag (lowest in Chakwal).

Moreover, in the southern region, prices have fallen below recent high of PKR650/bag (Karachi). This has followed the recent commissioning of Power Cement’s (POWER) new capacity of 2.5Mta in the south. Reportedly, some cement manufacturers are selling in a range of PKR590-PKR630/bag.