Pakistan's dispatches to grow in 5MFY19-20 

Pakistan's dispatches to grow in 5MFY19-20 
02 December 2019

All Pakistan Cement Manufacturers Association (APCMA) is yet to release dispatches data for  November and five months of July-November 2019, yet local experts are optimistic that cement sales are expected to grow eight per cent to 4.3Mt in November 2019 YoY, and five per cent YoY to 20.3Mt during the first five months of the current fiscal year of 2019/20.

According to research report of Topline Securities, the industry sales, however, are likely to drop by 15 per cent in November 2019 MoM due to seasonal factors.

Domestic sales
Domestic cement sales are forecast to grow two per cent to 3.4Mt YoY, led by "sales in the northern region, which was nine per cent up to 2.9Mt YoY. The growth was driven by dispatches to southern region and stocking by dealers. "On the other hand, sales in the southern region are anticipated to continue its downward trajectory and post a decline of 25 percent to 500,000t YoY primarily due to lower construction activity and competition from north manufacturers.

Export sales are likely to post impressive growth of 45 per cent YoY, led the southern region, which saw exports increase 58 per cent YoY to 500,000t. "Clinker sales to Bangladesh amounting to 155,000t by the DG Khan Cement helped boost exports during the month," the report said.

Total exports in the first five month of the current fiscal year are expected to record 22 per cent YoY growth to 3.6Mt.

Published under Cement News