Pakistan exported 861,500t of cement and earned US$40.440m in May 2011 compared to 933,709t at US$39.798m in April 2011. This reflects a decline of 7.73 per cent in terms of quantity but an increase of 1.61 per cent in dollar value terms on a month-on-month basis, according to data released by Federal Bureau of Statistics.
Figures were also down compared to May 2010 (934.130t at US$43.93m) which represents a fall of 7.78 per cent and 6.37 per cent in terms of quantity and dollar value YoY, respectively.
On a more on cumulative basis, total cement exports during the first 11 months of the current fiscal (July-May 2011) dropped to 8.531Mt at US$409.934m from 10.019Mt at US$444.752m in the corresponding months of the previous year. This shows that cement exports fell by 14.85 per cent and 7.83 per cent in terms of quantity and value YoY.
A breakdown of figures shows that cement plants in the northern zone exported 6.075Mt and those in the southern zone 2.460Mt during the first 11 months.
Afghanistan was the largest importer of cement from Pakistan, acquiring bought 4.25Mt between July-May 2011 compared to 3.63Mt in corresponding period last – up 16.96 per cent. India also purchased 523,902t of cement from Pakistan compared to 653,309t in July-May 2010-11 – reflecting a fall of 19.81 per cent.
Export to rest of world also declined by 31 per cent – mostly due to erosion of price and demand in international market. The export of clinker by sea also declined to 159,873 t in 2010-11 (July-May) from 257,342 t in a year ago period.
According to AHCML Research, the Pakistan cement sector is forecast to demonstrate an improved performance in FY 2011-12 due to number of steps taken by the government’s budget announced earlier this month, which includes a reduction in Federal Excise Duty, the removal of Special Excise Duty and a reduction in Sales Tax. Moreover, a significant allocation of PKR730bn for development projects were made which will hopefully increase demand in FY12.