LAHORE, April 19: The cement prices have begun to fall in local markets around Punjab as sales are said to have come to a virtual halt on the hope of substantial decline in the rates.

A senior executive of a cement manufacturing company told Dawn on Wednesday that the ex-factory prices had slid to around Rs310-320 per bag because of moratorium on cement export as well as expected import of heavy quantities in the next few weeks.

However, he said, the retail prices, which touched Rs500 a bag in Multan and Rs400 in the provincial capital, would take a few days to decline. He said the retail rates were likely to drop in 5-10 days.

The executive, nevertheless, said the ex-factory prices weren’t likely to slide below Rs300 per bag. He said the government wants the cement prices to fall down to the level of Rs285 a bag, which was not possible in the given circumstances.

An executive of another cement company told this reporter that the cement producers were determining their ex-factory prices on a day-to-day basis.

The manufacturers have been blaming the widening gap between demand and supply for the increased prices. They said the cement prices had surged drastically owing to a strong demand from the public sector programmes, rebuilding of earthquake affected areas in Azad Kashmir, enhanced requirements from the private sector and delay in the coming of new plants into operation. They expect the “temporary” demand and supply gap to be bridged within the next three to four months when the new plants become operational.

The cement producers said it would be unrealistic for the government and the consumers to expect the prices to fall on the previous levels due to higher cost of transportation and energy.