KARACHI, July 10: While the fate of around 100,000 tons of Chinese cement -- detained on two ports on quality grounds -- still hangs in the balance, the prices of locally produced cement in the city have not shown any change for the last two months.
However, a leading producer claims that prices have been reduced in the Punjab and the NWFP.
A random market survey reveals that State Cement is priced at Rs290 at wholesale and Rs300 at retail stage. Falcon Cement sells at Rs320-325 at retail while its wholesale price is Rs315 per 50 kg bag.
The wholesale rate of Pakland is Rs305 while it is tagged at Rs310-315 at retail level. Dadabhoy Cement is available at Rs280 while it is priced at Rs290. These rates have been tagged for the last two months.
The Chinese cement, arrived a month back in loose form, now sells at Rs270-290. It is being mainly used in blocks making.
Karachi Cement Dealers Action Committee (KCDAC) Convenor Shaukat Hussain said that there had been no change in prices of locally produced cement. However, he added that he did not know whether the prices had declined in the upcountry or not.
He blamed the cement makers for lobbying the government officials in blocking cheap Chinese cement on the pretext of substandard.
“Cement makers know that they will have to sell their product between Rs225-250 per bag in case Chinese cement is released from the ports. That is why they are trying hard to keep exerting pressure on the government for its detention,” he said, adding that Chinese cement has forced the local manufacturers to curtail prices.
Lucky Cement Limited Executive Director A.R. Thaplawala said that imported cement had 4.25pc magnesium oxide as against 4pc allowed by Pakistan Standard PSS 232-1983 (R). This standard was formulated in 1983 when almost all the cement plants in the country were based on wet process. The standard allows a maximum expansion of 10mm.
“Situation has changed now. All the present plants in the country now run on modern dry process. Cement produced in local plants has less than two per cent magnesium oxide. The expansion of cement does not exceed 1.5mm to 2mm,” he said.
Thaplawala said any imported cement would have very high level of magnesium oxide which could be disastrous for our construction industry. It could affect the stability of building structures.
He claimed that cement prices had come down to Rs260-280 per 50 kg bag mainly in Punjab and NWFP. However, he added that locally produced cement could be purchased at lower rates in Karachi depending on the size of the orders.
He rejected the claims of dealers and market forces that the cement industry was bent upon pressuring the government in blocking the Chinese cement.
“The government has offered nothing to the local industry in the budget and it continues to encourage import of cement despite massive expansion taking place in the production capacity of the local industry. So how one can say that the government is safeguarding our interests,” he remarked.
Association of Builders and Developers Acting Chairman Nusrat Mirza Chughtai said that the cement cartel had made inroads in the bureaucracy which was evident from the refusal of the Customs Department in clearing the Chinese cement on the basis that it did not meet the required standards.
In a letter to the prime minister, he said that the Research Institute of Karachi University and Pakistan Council for Scientific and Industrial Research had tested the imported cement and had found it exactly in accordance with British standards. But the Customs was not ready to release the cement despite clear reports from two competent authorities.
“Our members have used the Cheeta or Tiger brand in various constructions earlier and there are no complains yet,” he said, adding “builders have not used the imported cement in the construction structure. He said it is the same cement which is being used in various projects of Dubai.
It may be mentioned here that Central Board of Revenue Chairman Abdullah Yousuf in a meeting with some traders in the last week of June in Karachi, had clearly refused to clear the imported cement on the basis of reports presented by public sector labs. He had said that the how can the government could release the imported cement when every 100 grams contains 10pc sand.
It is surprising that both builders and cement dealers are still in favour of releasing the Chinese cement despite knowing the facts as mentioned by the CBR chairman.
