KARACHI, May 11: A ship, S Kala, from China loaded with 26,620 tons of loose cement was accommodated berth at Port Qasim on Thursday. Around 250,000 to 300,000 tons of cement had been booked by importers after the government allowed cement import on freight subsidy last month.

The government allowed cement import with Rs60 per 50-kg bag as freight subsidy to check rising prices of the commodity in the local market. There was a view that cement manufacturers had made a cartel to capitalise on high demand by pushing up the prices.

According to market sources, two more ships were to start loading of 25,000 tons of cement in 50-kg polypropylene bags at Chinese ports.

However, importers were worried about sudden fall in domestic cement prices. They felt that the manufacturers were manoeuvring the market again to hurt them by bringing prices down to a level where the import would become unviable.

Before the allowing of cement imports last month a 50-kg bag was being sold between Rs375 to Rs425, but now it had suddenly fallen to Rs300 to Rs325 per bag.

“There is a strong feeling amongst importers that some forces are bent to embarrass the government by inflicting huge losses to importers who would ultimately stop importing the commodity in order to avoid losses,” observed a leading importer.

Pakistan Commodity Importers Association chairman Raees Ashraf Tarmohammad said if the cement importers made even marginal profits they would continue bringing in the commodity to ensure availability of cement at reasonable rates to consumers.

He said that importers last month had booked cement between $64-$66 per ton in 50-kg bag and $53-$55 per ton for bulk or loose cement. However, Tarmohammad said that due rapid rise in oil prices the Chinese suppliers had increased prices by $3-$4 per ton. Higher freight charges were the main reason which had pushed the cement prices on the world markets, he added.

He said that three to four vessels carrying 25,000 tons each would soon start arriving on weekly basis for the haulage of booked cement of 250,000 tons to 300,000 tons.

He further said there were rumours that the local official production of cement would shoot up to 41 million tons from 19 million tons by the end of this year.