Pakistan records mixed trend of cement revenue in 8MFY19-20

 Pakistan records mixed trend of cement revenue in 8MFY19-20
19 March 2020

The export of cement/clinker from Pakistan during the first eight months of FY19-20, saw a fall of 5.80 per cent in terms of value but record a growth of 6.45 per cent compared to 8MFY18-19, says data released by Federal Bureau of Statistics.

The breakdown of data shows that country's cement sector earned US$193.92m by exporting 5.151Mt of cement and clinker between July 2019 – February 2020, compared to US$205.86m from 4.839Mt of exports in the comparative year ago period. This represents a 5.47 per cent decline in terms of value in dollars, but records a growth of 6.45 per cent in quantity during this period.

In local currency terms, the export value increased by 11.84 per cent to PKR30.24bn (US$190m) from PKR27.04bn during this export period. However, the value per tonne fell from US$42.53/t to US$37.64/t.

However, in February 2020 alone, export revenues recorded a MoM negative growth to US$23.79m with cement exports of 644,711t, compared to US$24.87m from 716,950t of exports in January 2020. This represents a contract of 4.36 and 10 per cent in terms of dollar value and quantity, respectively.

In addition, when compared with data of February 2019 (US$21.51m from 505,564t), total positive trends were observed. The value of exports increase by 10.56 per cent and 27.52 per cent in terms of quantity respectively on YoY basis.

According to the All Pakistan Cement Manufacturers' Association, jump in exports is understandable as it is a result of benefits of huge decline in rupee value. Exports from the north remained subdued due to lower demand in Afghanistan and zero exports to India through the Wahga border.

Published under Cement News