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Global Rise in Coal Prices May Increase Cement Rate in Pakistan

Karachi: A news source indicated that the price of cement in Pakistan may increase in the near future due to the global increase in the cost of coal. The international coal prices reached their highest level since 2008 in July 2021.

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At the end of the previous month, the price of Australian coal was USD 152 a tonne, which was nearly 195% more than the previous year’s price. Consequently, a rise in local cement prices can be anticipated. In contrast, cement costs on the local market have risen during the past two months.

Pakistani industry rely heavily on coal to function. Sources indicate that Pakistan imports 16 million tonnes of coal annually. Two-thirds of imports are employed by power plants, while the remainder is utilized by the general and cement industries. In addition, it was reported that more than one-fifth of Pakistan’s electricity is generated in coal-powered plants.

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China’s coal demand is a contributing factor to the increase in coal prices. Due to the drought, the southern region’s hydroelectric dams failed earlier this year. The chief executive officer of Arif Habib Commodities, Ahsan Mehanti, remarked that the considerable increase in coal prices in Pakistan is due to the currency exchange rate.

According to the provided information, coal prices will remain elevated since new environmental rules have made it difficult for miners to obtain permission to extract more coal.

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