KARACHI: Cement producers have raised their prices by Rs 15 to Rs 435 per bag in less than ten days, market sources said Tuesday.
A senior analyst of KASB Securities, Shagufta Irshad said that producers have escalated cement price by Rs 10 this week. This is in addition of an increase of Rs 5 per bag in the last week of March 2012.
The reason for increase is the rise in cement export, specially to neighbouring Afghanistan. Pakistani exporters had raised cement prices for Afghanistan market from $ 37-40 per ton to $ 50 per ton late January this year.
Cement exports to Afghanistan currently represent 50 % of the total exports from Pakistan where major quantities are shipped by the companies having proximity to the north western border.
Pakistan had exported 4.7 million tons to Afghanistan during the year 2010-2011 and 2.5 million tons during the first half of 2011- 2012.
She said this increase will have a positive impact on the earnings of these companies in the current financial year and also enhance export earnings for the country.
Pakistani cement currently dominates in the central and north region of Afghanistan where major reconstruction activities are going on.
She pointed out that companies having exposure to Afghan market include Bestway, Cherat, Lafarge Cement, Fauji Cement and DG Khan Cement.
DGKC has higher exposure to Afghan market than Lucky as its both plants are located in the northern region.