Against the backdrop of growing demand, cement producers in both northern and southern regions are increasing their prices. The price of the cement bag has risen – on average across markets – by Rs. 30 in the month of July-2021 alone and has increased by Rs. 85 in 2021.
Previously, during the 2020 lockdown, Prices fell significantly and have been slowly improving since then.
Another important trend is the reduction of the price gap between cement players in the north and south regions. There are limited players in the south region and prices tend to be more stable, while competition between cement producers in the north is fiercer, making prices volatile.
But as demand grew, northern cement producers found it more convenient to raise prices as cement demand increases.
Cement Price History 2019-2021
Demand forecasts are strong as development on different hydropower projects picks up. Construction under the Naya Pakistan Housing Program (NPHP) is likely to begin this year, which will keep the cement demand high.
While costs also drive up prices, confidence in demand and lack of imports allows cement producers to be very well positioned in the domestic market, providing safe margins.
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