KARACHI, April 5: While the decision to halt cement exports for a month is yet to come into force from Thursday, the price of cement has further increased in the market. A random market survey reveals that there is hardly any 50kg bag available below Rs350.

Falcon cement is now priced between Rs270-390 per 50 kg bag as compared to Rs350-355 last week. Its ex-factory price is now tagged at Rs350.

Pakland cement is available at Rs380 as compared to Rs350 last week, while Power cement is now priced between Rs370 as against Rs340 earlier. Javedan cement is selling at Rs360-365 as compared to Rs350.

Acting chairman of Association of Builders and Developers (ABAD), Nusrat Mirza Chughtai, said that cement prices were again on the rise and dealers were giving delivery after two days from the booking date.

He said there had been no sentimental impact of the Monday meeting of the stakeholders with Minister of Industries Jhangir Tareen or hardly there was any let-up in prices.

He urged the industry minister to take notice of further increase in cement prices and ensure that the price is reduced during the period when exports will remain suspended.

Chairman All Pakistan Cement Manufacturers Association (APCMA), Tariq Saigol, told Dawn that the dealers and retailers had again joined hands to encash the situation.

“When we keep the cement price at Rs300, it sells in the market at Rs360 and when we fix the price at Rs310, it costs the consumers at Rs380,” he said adding that there has been a lingering problem how to control the burgeoning cement prices under such circumstances.

On the possibility of a decline in prices after a unanimous agreement reached between the government and the manufacturers on halting exports for 25 days, the APCMA chairman did not give a clear indication as to how much price of a cement bag would come down in the market. “The price will definitely fall, but I can not give you a specific amount,” he said.

Around 10 per cent of the exportable cement (150,000-180,000 tons) is expected to reach the markets for local consumption from April 6 to 30.

He predicted that the cement crisis might loom large for another three to four months, but the situation would change by the end of December 2006 with the production rising to 32 million tons per annum from 22 million tons, with the advent of five new production lines this year. Each plant has an average production capacity of two million tons per annum.

“I think situation would come under control after June as some plants are coming with additional production capacity out of these five units,” Saigol said.

He also blamed the consumers for not showing any resistance to buying costlier cement. “There is no question of life and death in getting cement on urgent basis by the consumers, they can wait for few days. Look, what is happening in sugar,” APCMA chairman said.

On the start of the re-construction phase in Northern Areas and Kashmir, hopefully, from April 7, he said there were no actual estimates calculated by the cement-makers as how much cement would be required for such purposes.

Another leading cement-maker said that the import of cement from any country was also not feasible as it would be costing almost the same price as the locally made cement. He added that imported cement would cost between $50-60 per ton (C&F) Karachi and by adding GST, CED, transportation and handling charges, the price would reach over Rs300 per bag. There is also a possibility to bring second grade cement from India through Wahga Border.

However, an industry ministry official had quoted in the Monday meeting that imported cement would cost between Rs198-250 (C&F) Karachi.

An analyst said that the arrival of less than 10 per cent of the exportable cement in the local market would hardly make any big difference in prices.