KARACHI, May 30: The much-awaited Chinese cement has finally hit the local market and is available at a price difference of Rs30-50 per 50-kg bag compared to the locally produced cement.

Cement dealers said that Chinese cement was being sold in some areas of the city by the name of Cheeta or Tiger at a price of Rs270-275 per 50-kg bag.

However, the locally produced cement was being sold between Rs290-330 depending on the quality. The cement prices have been on the decline since April 6 after the government allowed its import.

An importer of Chinese cement, Mehmood Mehboob Brothers, had already claimed in the press this month that the Chinese cement which had arrived in loose form was of grade 52.5 R and 28 days strength above 8000 PSI which was far superior than locally-produced cement. The company had also claimed that the cement was certified by world’s leading Swiss Agency SGS.

Another company Khalid Javed and Brothers is bringing in 23,300 tons of cement in the first week of June. Faisal Imran, director administration of the company, told Dawn that this was going to be the first packed cement arriving from China.

“We have started booking at Rs100. While the wholesale price has been fixed at Rs285 and it will be sold below Rs300 in the market depending on the retailers’ profit,” he said, adding that the company had already received orders for 7,000 tons.

He also claimed that the Chinese cement excelled in the quality as compared to locally produced cement.

He said his company bought the cement at $72 per ton making the landed price at Rs325 but due to Rs60 freight subsidy per bag it would actually cost Rs265 but the company was taking bookings at Rs285 from the customers.

He lamented the powerful lobby of cement-makers for forcing banks not to open letters of credit for future imports.

On the other hand, cement dealers said that Chinese cement was available at Sohrab Goth, North Karachi, Super Highway etc.

They said that the Chinese cement would give tough time to the locally produced cement because of its better quality and low prices.

They added that Falcon Cement was now selling at Rs330 as compared to Rs400 last month while Javedan Cement was priced at Rs300-310 as compared to Rs370 and Power and Dadabhoy cement bags were available between Rs290-300.

Cement makers have been slashing the rates in order to give a tough time to cement importers.

A leading cement maker and exporter, who asked not to be named, told Dawn that buyers of Chinese loose cement would be sheer losers as it had been hit by moisture and was being packed here in bags. “So there is no question of matching the quality with locally produced cement.”

However, he didn’t comment on the quality of packed Chinese cement, which is due to arrive next month.

“There might be a price war between imported and local cement in coming months,” he said, adding that imported cement was arriving at a time when demand had been low owing to slow construction activities in the country due to rainy season. Besides, three to four cement makers were bringing in their additional capacity in the market which would further push the prices down.

He also said that the export of cement to Afghanistan had been resumed from May 1 but very limited quantity was finding its way to Kabul. There was no ban on cement export from April 6-30 as the government and cement makers had unanimously decided to restrict shipments to Afghanistan aimed at stabilising the local prices.

Meanwhile, Association of Builders and Developers (ABAD) Chairman Hafizur Rahman Butt said that the cement manufacturers had exported over 100,000 tons of to Afghanistan in May despite a ban imposed by the government from April 6.

He said that the government had not issued any orders after April 30 regarding suspension or restoration of cement exports to Afghanistan and the manufacturers were fully utilising the situation.

He said that the builders had not lifted so far Chinese loose cement but they were booking the packed cement from the dealers.

He dispelled the impression that Chinese cement was of low quality, adding that the packed Chinese cement was of grade 42.5 as per international standards.

He said it was really good that the government had realised the existence of cement cartel and their artificial increase in prices. “The price of locally produced cement should not exceed Rs270,” Butt added.