According to a research report, cement prices in the North region have increased by PKR10/bag to a new all-time high of c.PKR660/bag. This is the second consecutive hike in the past week, taking total price increase to PKR20-25/bag. The major reasons for increasing cement prices is to pass on the recent increase in global coal prices (to US$133/ton, 13yr high) and transportation costs amid rising local petroleum prices.
However, cement prices in the South region are ranging PKR640-690 per bag (against our assumption of PKR698/bag). We expect South prices to rise to PKR720/bag by the end of FY22.
Courtesy – Intermarket Securities Limited.