Pakistan's dispatches reach 18.5Mt during 5MFY18

Initial data from local research houses suggests that Pakistan cement manufacturers dispatched 18.5Mt during 5MFY18, taking cumulative capacity utilisation to 95 per cent during five months period from July to November 2017.

According to local research house reports, cement dispatches in November 2017 alone are expected to surge by five per cent YoY to 3.94Mt. Cement mills situated in the northern part of the country dispatched 2.96Mt cement locally, which is 10.2 per cent higher than 2.69Mt despatched in the same month last year, the All Pakistan Cement Manufacturers Association (APCMA) data revealed.

The relative stability in prices seen in two months of 2QFY18 (post PKR5-10/bag increase) is expected to prevail in December 2017.

Nevertheless, higher fuel costs caused by increased coal prices and higher power cost for companies in Punjab with gas-based power generation (based on linkage of pricing with RLNG) is expected to drive margins down by 2-3 per cent in 2Q18.