Sources said the UAE cement manufacturers have raised the cement prices by some 10 percent from February 1, 2010 to rationalise the rising cost of production. With current surge, the ex-factory cement price has mounted to approximately 250 UAE dirham per tonne, which previously stood at 225-230 dirham per tonne, depicting an increase of some 25-30 dirham per tonne.
Now, locally produced 50-kg cement bag would be available at some 14-16 UAE dirham as compared to 12-15 dirham per bag previously. With the surge in the cement prices by the UAE manufacturers, Pakistani exporters believe that they will get some benefits in shape of increase in price and export. "We were already expecting that cement prices in UAE would surge following high cost of production, as the rising prices of raw material have badly hurt the cost and it was not possible for the UAE companies to sell cement on old rates," said a leading cement exporter.
"UAE is a leading importer of the Pakistani cement and some 50-60 percent cement is being exported to the Emirates, therefore, the Pakistani cement manufacturers would be the real beneficiaries of the current price hike by the UAE companies, he added. "We expect that Pakistani cement export prices for the UAE would go up by $3-4 per tonne," he said and added that now cement exporters would further focus the UAE markets to earn more foreign exchange.
However, industry sources said that only a few Pakistani cement companies could take benefit of price hike by UAE cement manufacturers. Cement exporting companies, which have cement plants in north zone (Sindh-Balochistan), would take some benefit in price and export, as they pay less transportation cost as compared to south zone factories, they added. "It will also be a hope for revival of the ailing Pakistani cement industry, which presently is facing massive decline in the local as well as export dispatches due to slow economic activities," they said.