Cement exports from Pakistan contract in 5MFY18

Pakistan's export of cement during the first five months of current financial year (July-November 2017) recorded a YoY fall of 17.3 and 19.52 per cent in terms of quantity and US dollar value, respectively, according to data released by the Federal Bureau of Statistics, Government of Pakistan.

The breakdown shows that Pakistan exported 2.059Mt of cement and earned export revenues of US$104.03m in July-Nov 2017, compared to 2.489Mt at US$129.25m in the corresponding months of the previous fiscal year. 

However, the average cement price edged up to US$19.75/t from US$19.25/t during this period.

In November 2017 alone, the country exported 363,446t of cement at US$18.04m, compared with 472,291t at US$23.29m in Oct 2017. This translates to a MoM fall of 23.1 per cent in volumes and 22.6 per cent in US dollar value. However, when compared with data of November 2016 (456,100t at US$23.65m), exports fell 20.3 and 23.7 per cent YoY in terms of quantity and US dollar value, respectively.

During July-November 2017, Pakistan exported 1.078Mt to Afghanistan and recorded growth of 7.1 per cent. However, exports to India stood at 455,111t, showing a fall of 20.7 per cent. Similarly exports to rest of the world fell by more than 43 per cent.

All Pakistan Cement Manufacturers Association (APCMA) has stated that while all the previous issues raised by cement manufacturers in the last few months have remained unaddressed, a rise in duties on coal has increased the cost of production, said the spokesman. The higher consumption of cement does not mean that government imposes duties on its inputs instead of providing relief to the industry, which is badly hit by decline in exports, he said adding that the government should also honour its commitment made to the cement sector that excise duty will be withdrawn in a phased manner.
 
"The government can generate revenue from stopping the smuggling of cement from Iran and under-invoicing as inaction against the culprits is not only disturbing the industry but eating up a major chunk of revenue," he added.

APCMA expressed concern over the reasons for decline in exports as the industry still has idle capacity that can be dispatched locally and abroad provided the country's government would support the industry.