Pakistan cement manufacturers have reportedly increased the prices PKR10-15/bag (US$0.07-0.1) of cement in the northern region (Punjab and Khyber Pakhtunkhwa) of the country. The hike in cement prices will be effective immediately, according to a report by a local research house.
Reasoning the hike, the analyst stated that the price change is courtesy of supply-side management amid continued demand-side pressure and inter-regional trade. Cement prices in the north witnessed a sharp drop of PKR50-60/bag during February-March 2019 to PKR510-560/bag.
After incorporating the recent price increase, the new price range stands at PKR520-575/bag as compared to price range of PKR570-600/bag in the south, the report added.
Taking into account the current demand scenario (particularly in the north) and upcoming expansions in Punjab and Khyber Pakhtunkhwa, it is estimated that the price increase may not be fully sustainable