Pakistan: cement exports fall on YoY basis in 5MFY2016-17

Pakistani cement manufacturers earned revenues of US$23.68m on exports of 455,720t cement in November 2016, compared to US$28.30m on 543,674t of exports in the previous month. These figures represent a MoM decline in dollar value and volumes of 16.35 per cent and 16.18 per cent, respectively.

However, when compared with November 2015 (593,922t with a value of US$30.11m), volumes slipped by 23.27 per cent and the value was down by 21.37 per cent, according to the country's Federal Bureau of Statistics.

In the first five months of the FY2016-17 (July-November, 2016), Pakistani cement producers exported 2.48Mt of cement at a total value of US$129.28m compared with 2.66Mt at US$147.54 in the equivalent period of the previous year. This represent a YoY retrenchment both in terms of value (-12.38 per cent) and volume (-6.79 per cent).

During 5MFY16-17 Afghanistan imported over 1Mt of cement, representing a 9.18 per cent overall decline when compared with the equivalent period in the prior year. However, export to India increased by 83 per cent to 579,190t. Export to the rest of the world also contracted by 16 per cent.

A spokesman for All Pakistan Cement Manufacturers Association (APCMA) pointed out that exports are likely to remain under pressure as Pakistan's cement producers face competition from Iran in Afghanistan and exports by sea are on the decline whereas exports to India have a positive trend.