Price War ensues between Northern Cement manufacturers

Price wars have ensued, as players from North decreased the prices offering a discount on cement prices effective 2^nd Oct’ 17 by PKR 10-15/bag to PKR 480-495/bag. Prices in the northern region are down by 12%.

Cement Sector Index has lost more than 2700 points during today's trade after 15 companies touched their lower locks during the day.

With numerous risks at hand, the cement sector remains extremely vulnerable; local competition sending the prices downward especially in the Northern Region, and rising international prices for coal. It remains to see whether the competition makes its way into the Southern Region during the next few weeks.

Apart from the pricing, the Currency Depreciation will tarnish the performance of the sector further. The depreciation will dampen the margins for Cement Manufacturers further.

Situation in the Southern Region remains as is, the prices have remained constant in this side of the country, without any changes.