Karachi: According to a news source, the price of cement in Pakistan may rise in the near future owing to a global increase in coal prices. In July 2021, worldwide coal prices reached their highest level since 2008.
At the end of the previous month, the price of Australian coal was USD 152 a tonne, nearly 195 percent more than the previous year’s numbers. Cement prices in the local market are likely to rise as a result of this. Cement costs, on the other hand, have risen on the local market during the previous two months.
Pakistan’s industries rely heavily on coal to run. Pakistan imports 16 million tonnes of coal each year, according to sources. Two-thirds of imports go to power plants, with the rest going to the general and cement industries. Pakistan’s imports in 2020, according to the United Nations Statistical Division and the International Trade Centre, were 17.1 million tonnes. Furthermore, more than a quarter of Pakistan’s electricity is generated in coal-fired power plants, according to the report.
When it comes to the causes of high pricing, AKD Securities claims that high gas prices in Europe are driving up coal prices. Because of the rising demand for electricity, coal-fired power facilities are given priority over gas-fired power plants.
Another factor driving up coal prices is China’s need for the fuel. Drought forced the closure of electrical dams in the southern area earlier this year. The spike in coal prices in Pakistan is apparent, according to Arif Habib Commodities CEO Ahsan Mehanti, due to the currency rate effect.