KARACHI, July 19: While consumers suffered heavily by paying higher cement prices, the outgoing fiscal year proved cheerful for the cement producers, who made profits with 162 per cent increase in quantity and 182 per cent in value on the export front.

According to figures of Federal Bureau of Statistics (FBS), a total of 7.367 million tons ($411 million) of cement was exported during July-June 2007-08 as compared to 2.8 million tons ($146 million) in the same period last year.

An exporter said that the main export markets in the year under review were the Middle East, India and African countries where dispatches were made at a price ranging between $53-63 per ton.

In Afghanistan, the cement makers fetched price hovering from $38 per ton to $50 per ton.

Local cement prices had been under pressure for the last few months and currently Falcon Cement is selling at the highest price of Rs380-400 per 50 kg bag. Other brands are also costlier.

Dealers said that the government had not still taken any action against the cement makers for pushing up the rates to the peak level.

Due to failure of the Competition Commission of Pakistan (CCP) to check cartelisation, the cement markers enjoyed a free hand pushing the rates up unhindered.

A dealer said that the manufacturers had been creating artificial shortage by supplying very low quantities to the local market and exporting cement in huge quantities.

He said that there was no authority to check the monopoly of the manufacturers.

Construction activities in Karachi have been going on in full swing before the start of monsoon season in the third week of this month.

An analyst at a brokerage house said, “Exports have been more profitable for the local industry then the sale of cement in the local markets.”

He was of the view that the coal-fired and gas-based cement plants had been facing problems owing to rising price of coal in the world market. He claimed that the cement makers were working on very lower margin.

A leading cement maker and exporter, who asked not to be named, said that the price of cement bags of almost all the companies had surged by Rs40 per 50 kg bag after the budget.

He said that the maker of Falcon Cement had increased the ex-mill rate to Rs340 on Friday from Rs325 per 50 kg bag. Other producers had already enhanced the rate earlier this week. He added that the ex-mill price of almost all the producers had come to Rs340 per 50 kg bag.

He linked the price hike to increase in federal excise duty by Rs150 per ton, one per cent increase in general sales tax, coal price hike in global markets, and gas price hike for captive power plants.

The producer said that the Indonesian coal price has surged to $160 per ton (C&F Karachi) from $103 per ton six months back, while the South African coal price is now tagged at $200 per ton as compared to $151 per ton six months back.

He said that the price of cement in domestic market is likely to decline as construction activities will slow down in August owing to monsoon season. There might be a low demand of cement in Ramazan and Eid holidays in the first week of October.