Cement price likely to be jacked up

The cement industry is anticipating an increase of Rs 50 per 50 kg bag following a hike in transportation costs of cement and coal, according to a local newspaper. So far, the impact has not been passed on to the consumers despite the fact that decision of raising freight charges by goods carriers became effective from April 14, cement manufacturers claimed. “We are currently bearing the rising transportation cost and watching the market situation which looks quite uncertain,” a leading cement maker said. Cement retailers says the prices of cement bags have been intact for the last few months. Good quality cement carries price of Rs 435-450 per 50 kg bag. All Pakistan Cement Manufacturers Association (APCMA) Chairman Aizaz Mansoor Shaikh estimated Rs 50 as additional cost on a 50 kg bag in case the decision of hike in freight charges was fully implemented. “It is up to the cement manufacturers how they would pass on the impact at the retailers’ end keeping in view market situation,” he said. While many companies fear decline in their sales in case prices are raised, the APCMA chief said that quite a few companies have not been lifting coal and not making deliveries after April 14. He said the load limit restricts the producers not to carry more than 50 tons of raw material and finished goods on the goods carriers. It will create a crisis as the country needs at least 50 per cent more trucks and vehicles to cover up the load.