Pakistan eight-month export sales rise in value terms

Pakistan eight-month export sales rise in value terms
29 March 2012

During the first eight months of the current fiscal (July 2011-June 2012), Pakistan cement exports have progressed in terms of value while the markets of Afghanistan, India and Saudi Arabia look promising. 

The eight month period (July 2011-February 2012) saw Pakistan export 5.855Mt of cement with a value of US$303.127m compared to 5.905Mt at US$290.852m in the corresponding period of last year. This shows that cement export fell slightly by 0.85 per cent in terms of quantity but were up by 4.22 per cent in dollar terms, according to data released by the Federal Bureau of Statistics.

In terms of the Pakistani rupee, exports rose by 7.03 per cent during July 2011-February 2012.
The average export price of cement increased by 5.12 per cent to US$51.77/t in 8MFY11-12 from US$49.25 in 8MFY10-11.
Cement producers in the south exported over 4Mt while those in the north exported 1.8Mt.

In February alone, Pakistan exported 746,853t and earned US$29.850m compared to 689,600t at US$38.253m in January 2012. This reflects month-on-month growth of 8.3 per cent in terms of quantity but a decline of fall of 21.97 per cent in dollar value terms. Similarly, if compared with February 2011 data of 709,024t cement at $34.233Mt, cement exports recorded a growth of 5.34 per cent in quantity but were down 12.8 per cent in value YoY.
According to a report by Invest Capital Markets Ltd, export demand has been hurt to some extent due to capacity increases in the Middle East (one of the primary markets for Pakistani cement), whereas export to Afghanistan, India and African countries remain the top market for the Pakistan's shipments.

The breakdown shows that Pakistan exported over 3Mt of cement to Afghanistan, 447,362t to India and rest to other countries by sea compared to 2.8Mt, 320,730t and balance in other countries respectively in 8MFY10-11.

InvestCapital reported that Pakistan is trying to improve trade relationships with India, Iran and Afghanistan. It has awarded MFN (Most Favoured Nation) status to India and taken a step forward to further enhancing trade relations in the region. Should India allow the importation of cement in large quantities via road, this would act as a trigger for Pakistan cement manufacturers in the north through the Wahga border. Moreover, southern Pakistan exports should benefit from increasing demand in Saudi Arabia which has recently eliminated its import ban on cement.

Published under Cement News