Cement exports from Pakistan to India increased 53.8% to reach 0.16Mt in the first quarter of FY2012. The rise is attributed partly to an improvement in bilateral relations between the two countries.
However, seaborne exports have fallen significantly by 24% QoQ to 0.85Mt while cement exports overall advanced by a mere 0.21% YoY. Producers have attributed the limited export volumes to a sharp increase in input costs, particularly energy and transportation costs.
Power prices rose by 9% to PKR7.1/kWh to PKR7.7/kWh with increasing load shedding. In addition, rates of diesel and coal have climbed by 15% and 8%, respectively while furnace oil prices have surged by 28%.
On a more positive note, the All Pakistan Cement Manufacturers’ Association (APCMA) added that local cement sales improved as the domestic market picked up by 12.23% during the first quarter. Cement producers in the north sold 4.23Mt while their southern counterparts delivered 0.945Mt in the Jul-Sep 2011 period.