Pakistani cement exporters lose earnings due to cutthroat competition

Pakistani cement exporters lose earnings due to cutthroat competition
Published: 22 January 2008

The value of Pakistani cement exports to India has fallen from $74 to $70 per tonne during the last few weeks due to competition amongst the exporters, said an industry source here on Monday.

“Pakistani cement makers are fetching less value for their products from buyers abroad because they are competing with each other unnecessarily,” said a top official of a cement-exporting firm. “It is unnecessary competition because the demand from Indian buyers is more than our capacity to export to them.”

He said the realisable value is higher than the local firms are currently getting. “The buyers there can offer much more to us,” he said.

While the cement exported through land route is fetching $70 per tonne, the cement sent by sea is now priced at $63 per tonne as compared to $65 per tonne four to six weeks ago.

Similar is the case of cement exports to the Middle East. Whereas the Pakistani companies were selling their products to Middle East buyers at $62 per tonne, now they are shipping for only $60 per tonne, another industry source said.

Cement export value had risen very fast early last year. It had increased from $47-48 per tonne in January 2007 to $57 per tonne in March and then $65 per tonne in May.