International coal prices have recently dropped to their one-year low, with Richards Bay coal now priced at USD 94.75 per ton. This marks the lowest price since February 23, 2024, when it was at $92.30/ton.
According to Arif Habib Limited, a decrease of $5 per ton in coal prices leads to a reduction in cement production costs by Rs. 10 per bag.
Read More: Afghanistan reduces coal tariffs and royalties
This drop in coal prices is expected to benefit cement companies based in the southern region, including:
- Lucky Cement Limited (PSX: LUCK)
- D.G. Khan Cement Company Limited (PSX: DGKC)
- Power Cement Limited (PSX: POWER)
- Attock Cement Pakistan Limited (PSX: ACPL)
These companies stand to gain from reduced production costs, potentially improving their profit margins.
