KARACHI, April 8: Cement prices continue to rise in the markets as dealers charge Rs290-295 per 50 kg bag for Falcon brand as compared to Rs280-285 in the last week of March.

Retailers quoted the Lucky cement price at Rs275 as compared to Rs260-265. Even the price of state-owned cement has become costlier at Rs260 as compared to Rs250 earlier.

Cement prices are gradually getting closer to the Rs300 mark.

On March 3, Falcon cement was priced at Rs260-265 as compared to Rs255 and Lucky Cement at Rs250-255 against Rs240 in the last week of February.

Cement makers are enjoying a business boom for the last few months as demand has risen after the start of construction activities, followed by export orders from South Africa, Sri Lanka, India and the Middle East. India, after importing sizeable quantities in the last four months, has hinted for more import of cement from Pakistan.

Since there has been no check on the cement prices during the interim period before the advent of the new government, the manufacturers have been active in pushing up the rates almost every week by Rs5 to Rs10 per 50 kg bag.

Cement dealers in various areas said that they were getting Falcon cement at Rs280 from the company now as compared to Rs273 a week back and the retailers may charge Rs10 or Rs15 per 50 kg bag as their profit. They added that cement prices might further go up as construction activities will pick up pace in summer season. However, they said that the maker of Falcon cement took the lead in increasing the rate and the government has yet to take any action because it is a foreign company. Other manufacturers will sooner or later follow the suit.

Dealers did not give the exact reason behind the rise but said that there had been phenomenal increase in exports, especially in the last few months.

Most of the construction activity is, at present in the residential areas like renovation of houses, adding extra storey and building a house on the site of demolished structure. However, there has been very slow demand of cement from the contractors as many on-going projects had been stopped after change in the government.

A cement maker, who asked not to be named, linked the cement price hike to rising cost of production owing to increase in price of imported coal, which now stands at $177 per ton as compared to $70-72 per ton a year back followed by increase in furnace oil price, which is being used for power generation purposes.

When asked if the government was putting up pressure on the manufacturers to sell cement at Rs200-220 as desired by the dealers, he replied in negative.

He said that currently cement sales was not extra-ordinary as construction in many private and government projects had been stopped.