Mixed trends in export from Pakistan continued in 2MFY20

Mixed trends in export from Pakistan continued in 2MFY20
24 September 2020

According to Pakistan's Federal Bureau of Statistics (FBS) cement export data for July-August 2020 (2MFY20-21) showed a mix of trends. Pakistan's cement industry earned US$44.51m of export revenue by exporting 1.376Mt of cement and clinker in the 2MFY20-21, compared to US$42.14m from 1.064Mt of exports in July-August 2019. Therefore, shipping represents a 5.6 per cent jump in dollar terms and a growth of 29.35 per cent in quantity MoM.

In local currency terms, the export value increased by 11.4 per cent to PKR7.44bn (US$44.51m) from PKR6.68bn during this export period. However, the cost per tonne fell from US$39.60/t in 2MFY2019 to US$32.33/t in 2MFY20.

In August 2020 alone, revenue decreased to US$21.58m on the export of 635,145 from US$22.92m with cement exports of 741,391t in July 2020. This represents a contraction of 5.9 per cent and 14.3 per cent both in terms of value and quantity, respectively. However, when compared with data of August 2019 (US$16.74m from 421,078t), a more positive trend was observed. The value of exports increased by 28.9 per cent and 50.8 per cent in terms of quantity YoY.

Export to Afghanistan was nominal whereas export to India remains suspended during the export period. As reported earlier, companies in the north performed better domestically as public sector spending was concentrated in the region throughout the year, but the north lost out on exports due to the retraction of the Indian market as well as the general slowdown from Afghanistan and other neighbouring markets. At the same time, the south continues to dispatch to overseas markets.

All commodities exports
Pakistan's total exports (all commodities) fell by 4.3 per cent during July-August 2020 to US$3.584bn against US$3.744bn in July-August 2019, the PBS data revealed. The Manufactures Group, excluding textile, saw a negative growth of 7.4 per cent during the first two months.

Published under Cement News