Gas shortages in Europe and USA pushing up coal prices, Pakistan industry expert

Fauji Cement Company Limited (FCCL) has achieved 98% in FY21 with an 8% mkt share. Management in a Corporate Briefing session held last month disclosed this. FCCL commissioned a solar plant of 2.5MW this year resulting in PKR 313mn savings.

Regarding coal rising prices, which plays a critical factor in cement production, management says gas shortages in Europe and USA, and higher coal prices in India are driving up coal prices. The sector can only absorb this up to a certain extend but the overall jump has been so huge in quantum, it will potentially be passed on as much as possible.

Afghan coal can ease the supply of coal to Pakistan but political uncertainty breaks supply chain.

Courtesy – AHL Research

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