Pakistan to report fall in dispatches in 1M14

Pakistan to report fall in dispatches in 1M14
03 February 2014

The Pakistan cement industry is likely to post a MoM drop of 13 per cent of total dispatches in January 2014 as winter affected both domestic and export shipments, which were down by 13 per cent and 12 per cent, respectively. But 7MFY14 (Jul-Jan) total dispatches minutely improved by 0.4 per cent to 18.68Mt.

According to estimates of leading brokerage houses, cement units located in the north dispatched 1.95Mt and 611,000t in the south during January 2014 (total 2.56Mt) compared to 2.37Mt and 580,000t, respectively in December 2013 (total 2.95Mt). Similarly, exports saw a fall of 12 per cent to 548,000t from 625,000t of December 2013.

Attock Cement is reported as the only company to post MoM growth during January 14, while DG Khan and Lucky Cement registered a six and eight per cent decrease in dispatches, respectively.

Going forward, it is expected that cement demand will develop positively in 2H14. Historically, 2H cement sales have contributed approximately 60 per cent to overall cement consumption. Increased investment released by the PSDP fund (only 33 per cent of the fund was released in the period up to January 2014) and improved economic activity will likely drive cement demand growth in 2H.

Published under Cement News