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WEEKLY
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| Cement-makers raise prices again |
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Tuesday, March 25, 2008
KARACHI: Upcountry cement prices rose by Rs10 to Rs15 per 50kg bag to Rs240 to Rs245. Cement companies attributed the recent price hike to rising cost of production due to high cost of raw material especially coal that has surged to around $140 per tonne from $90 per tonne in the last six months.
After an Rs20-25 per bag increase on March 6 the cement companies have again increased ex-factory cement prices by Rs10-15 per bag now stands at Rs240-245 per bag. Before this increase, prices averaged Rs230-235 per bag, JS Research reported. A cement industry official said that the burden of rising cost of production should be passed on to consumer and cement industry should no longer hold cement prices.
According to cement company officials, further rise is expected in the following days as demand is likely to pick up in the coming months. The increase in prices is also due to rising input costs forcing the cement companies to get into a price arrangement and pass on the impact on the consumers.
However, cement dealers in Karachi believe that it is the cement companies desire to raise domestic prices through hoarding while making profits by exporting cement. JS Research expects that cement companies would further increase their ex-factory prices to around Rs250-255 per bag in the coming days.
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ISSN 1563-9479 
