Pakistan’s top cement manufacturers termed the growing trend in coal prices detrimental to the county's cement industry. Its negative impact may dent the cement companies' profitability in the second quarter of this year if remedial measures such as an increase in prices of cement bags and relief in other inputs costs are not allowed or eased immediately.
The coal prices are hovering around US$170/t this month compared to US$75/t in July last year, reflecting a surge of 127 per cent in a 14-month period. The cement industry is already under burden due to provinces' increased limestone royalties and high cement bag prices. In addition, volatility in fuel prices and the depreciation of the Pakistani rupees against the dollar in last month.
