Preliminary Pakistan data indicates September sales decline

Preliminary Pakistan data indicates September sales decline
08 October 2015

Total cement industry dispatches in the month of September 2015 have decreased by eight per cent YoY, dragged down by a steep fall in exports, according to provisional cement sales figures.

The data from an InvestCap Research report, published in The Express Tribune (Pakistan), indicated that sales were down to 2.9Mt versus 3.2Mt in September 2014. Compared to August 2015, September sales were down five per cent MoM.

Demand in the domestic market continued to increase thanks to advances in public and private construction projects. September sales were up two per cent YoY to 2.5Mt against 2.4Mt a year earlier.
On the other hand exports continued to decline, down by 40 per cent YoY to 0.44Mt (0.73Mt in September 2014).

Regional analysis
Closer analysis shows that overall dispatches dropped six per cent YoY in the north, while the decline in the south was a deeper 16 per cent.

In the north, local dispatches rose by three per cent YoY in September to 2.05Mt, while exports were down 42 per cent YoY to 0.28Mt.

In the south, local sales were down by four per cent YoY to 0.41Mt and exports dropped by 35 per cent YoY to 0.16Mt during September 2015.

Cumulative sales (July-Sept)
For the first three months of the current fiscal which began in July 2015, total industry dispatches rose by just one per cent YoY to 8.22Mt from 8.16Mt in FY14015. Domestic sales were up by 11 per cent YoY to 6.75Mt while exports declined to 29 per cent YoY to 2.06Mt.

Local industry dispatches are expected to improve going forward due to higher private and public sector construction projects and  improve specifically in the local market owing to higher private and public sector construction projects, as well as from mega construction projects under the China–Pakistan Economic Corridor (CPEC), the report added.

The downward trend in exports is continuing to cause concern, but the decline should be somewhat offset by a forecasted rise in domestic sales. The security situation has improved in the country which will also boost private sector activity in construction sector.

Published under Cement News

Tagged Under: Pakistan Exports Dispatches