Reply To: Construction Materials discussion

Mohsin Munir

Cement prices go up by Rs50 per bag

By Team Overcs: April 22, 2020

LAHORE: After deliberating for months, cement companies in the north have raised prices by Rs50-60 per bag, industry officials said on Wednesday 22nd April 2020.

Despite the lock down due to Covid19 in entire country and no significant demand of cement at all, joint meeting of cement manufacturers after a meeting decided to increase the prices by 10.5%.

After the federal committee issued ordinance for the construction relief package announced by the PM, it was being predicted that the overall house construction cost will come down, however no amnesty or reduction in withholding taxes was given to cement and steel industry. On the contrary steel prices were increased by the steel manufacturers followed by the cement manufactures.

However, with the recent hike of Rs50-60 per bag, cement prices in the region now stand at an average of Rs515-530 per bag. However, cement prices in the southern region remain unchanged and are unlikely to be raised in the near term with the average price already at a premium of 14% against its northern counterparts (average of Rs680 per bag), according to AKD Research report.