Pakistan shipments advance over first eight months

Pakistan shipments advance over first eight months
06 March 2015

Total cement shipments over the first eight months of the current Pakistan fiscal (July-February 2015) rose eight per cent YoY, according to data by the All Pakistan Cement Manufacturers’ Association. The advance was led by domestic sales which climbed 11 per cent YoY to reach 17.4Mt. Exports, however, declined one per cent to 5.12Mt over the same timeframe, with contrasting results in the north and south.

February sales update
During February 2015, total dispatches rose by seven per cent. Domestic sales remained strong, growing by 12 per cent YoY to 2.23Mt but exports fell 12 per cent YoY to 0.47Mt. Sales in the northern region increased by six per cent YoY to 2.1Mt while in the southern region saw a 13 per cent advance. A contrasting performance was seen in terms of exports, with the north registering a 23 per cent YoY decline to 0.25Mt but exports from the south advancing by four per cent to 0.22Mt. 

Month-on-month comparison
On a monthly basis, February sales were down seven per cent compared to January 2015, with domestic dispatches and exports down eight and two per cent, respectively.

Improving margins
A better pricing environment and falling coal prices are expected to lead to an improvement in margins. During the July 2014 – February 2015 period, the average local sales price rose by 3.34 per cent YoY to PKR523/bag compared to PKR506/bag during the comparative eight month period of the previous fiscal. A surge in sales volumes and rising prices provided much needed support to companies’ top line and is anticipated to continue doing so. Coal prices, meanwhile, were down by 12 per cent YoY over the July-Feb period.
Increased construction activity anticipated
Pakistan is likely to see an increase in construction activity in the short-term thanks to higher spending allocation under the Public Sector Development Programme (PSDP) under the government’s FY15016 budget, plus an uptick in private construction, according to commentary by InvestCap Research.

Published under Cement News

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