KARACHI, March 29: Price of cement has further surged to over Rs340 from Rs330, while 50 kg cement bags, produced in the upcountry, are priced at Rs350.
Consequently, price of cement blocks (hand-made and mechanized) has also gone up by Re one per piece in the last 15 days.
Currently, the dealers are charging Rs8 for one kg of cement (loose) which means 50 kg cement will cost Rs400. Few days back cement was selling at Rs7 per kg, seven months back it was available at Rs5 per kg.
A random market survey shows that cement is becoming a rare commodity like sugar. Dealers in F B Area, Karachi, said that they had hardly enough stocks in their godowns as there had been very restricted supply from the factories.
They said that the market was highly uncertain as almost, every day the rates of cement were going up. “We currently, quote the rate of Power cement at Rs335 and Rs340 for Thatta cement but we are not sure that the rate will not change the next day,” they added.
Manufacturers have been increasing the ex-factory price and the onus is being put on the dealers for escalating the rate. “We are bound to charge higher rates from the consumers as we are getting costlier cement from the factory,” they said.
Dealers said that cement was in very short supply in the market these days as against the rising demand of the commodity owing to the full-fledged revival of construction activities in the private and public sector.
They added that cement makers were making shipments to Afghanistan and the Middle East thus creating acute shortage in the domestic market.
A dealer said that the ex-factory price of Pakland cement was raised to Rs310 from Rs260 in just one and a half months. It is selling at over Rs350.
Frequent increase in the price has been putting on additional burden on the construction cost of the public and private sector projects, while people, who need fewer quantities for renovation of their houses, are also compelled to buy costlier cement to complete the work in time.
Acting chairman Association of Builders and Developers (ABAD), Nusrat Mirza Chughtai said that the Falcon cement was selling between Rs350-355 as against Rs330 few days back. It was available at Rs265 per bag two months back.
The government is still not realizing the heat of the crisis-like-situation emerging in cement trade after the sugar crisis. “Suppose if a builder has committed to give a flat to the consumer at Rs1 million at the time of booking four months back, how can he fulfil the commitment when the project cost escalates by 35-40 per cent due to recent cement price hike,” he said adding that the consumers will have to bear extra burden of Rs150,000-200,000.
If the cement price rises to Rs400-450 per 50 kg bag in the next two to three years then the buyer will get the flat after paying Rs400,000-450,000 more. The builder will be in an embarrassing position to demand an additional payment from the buyers at the time of finishing of the flat and apartment, he added.
He said that he did not know how the government could control and bound the private sector cement makers to a fixed price when the state-owned Javedan is also selling at Rs350 as against Rs255 few months back. Even Thatta cement is available at Rs340, while it was priced at Rs255-260 earlier. Pakland is selling at Rs355-360 as against Rs260 few months back.
“The cement is not available in the market with the dealers and I do not know where all the production is going when all the factories are running on full capacity,” Nusrat said.
Currently, he said, many builders have slowed down their projects as the cement price hike has been adding to the construction cost.
He added that some builders had stopped the construction activities due to which the workers were on the brink of losing their livelihood. Due to the stoppage of construction projects, several other industries, directly or indirectly related to construction industry, are incurring losses.
Former chairman of All Pakistan Marble Industries Association (APMIA), Sanaullah Khan said their members wanted cement for their under construction marble units and they found that in some areas of the city dealers were quoting the price of Falcon cement at Rs390, Rs360 for Javedan cement, Rs360 for Pakland cement etc.
