Heavy rainfalls in the country along with fewer working hours during Ramadan were the key reasons for this decline. Domestic demand stood at 1.6Mt (down 19% MoM) while exports slipped 714,000t (down 14% MoM). However, last year’s previous low base on account of flooding helped total cement sales in the first two months of the current fiscal to record a seven per cent YoY rise (5.2Mt).
The decline in local sales were led by steep falls in the southern part of the country where sales were down 38% MoM. For 2MFY12, domestic sales reached 3.7Mt, up 14% YoY, which is again attributable to last year’s low base.
Logistical issues were hindered by sales to Afghanistan (down 26% MoM). This takes exports for 2MFY12 to 1.5Mt, down seven per cent on last year’s sales of 1.7Mt. On the other hand, local prices increased to PKR290/bag (retail prices are around PKR410-420/bag) from last month’s average of PKR251/bag as rises in power costs have been passed on by manufacturers. Export prices have also gained some ground rising to US$60/t from a recent average of US$52-55/t.
Analysts expect domestic demand to reach 23.3Mt this year (up six per cent YoY) while exports are forecast to remain in the region of 9.5Mt.
