Pakistan’s September cement sales and exports fall

Pakistan’s September cement sales and exports fall
Published: 13 October 2015

Tagged Under: Pakistan Trade 

September’s figures were disappointing for the cement industry as dispatches registered 2.95Mt, a decline of 6.4 per cent annually (-3.7 per cent monthly). As anticipated, exports continued their downward fall by 36 per cent YoY where growth in local dispatches (+2.5 per cent YoY) failed to compensate for the decline in exports.

The main reason for the export decline is the proliferation of cheaper Iranian cement in Afghanistan and the imposition of an antidumping duty by South Africa. According to experts, exports dwindled by 36.1 per cent annually and 35.7 per cent YoY in both the north and south due to increasingly tough circumstances in major export markets (Afghanistan and Africa). Combined with lacklustre local dispatches in the south (-7.3 per cent YoY), overall dispatches for the month turned negative.

On a cumulative basis however, 1QFY16 dispatches now stand at 8.27Mt vis-a-vis 8.16Mt in the corresponding fiscal period (+1.4 per cent YoY) with increasing local dispatches (+11 per cent YoY in 1QFY16) compensating for declining exports.

From a holistic point of view, the profitability of the sector should continue to improve as local dispatches command higher retention prices as compared to exports.