Cement export from Pakistan remains fragile in 8MFY21

Cement export from Pakistan remains fragile in 8MFY21
18 March 2021

The Federal Bureau of Statistics (FBS) of Pakistan has released cement export and production data for the July 2020-February 2021 and July 2020-January 2021 periods, respectively. It shows mixed trends. Export volumes increased during this period, but revenues declined in dollar terms, reflecting a dwindling global market for cement and clinker. Meanwhile, local output increased.

Pakistan's cement industry earned US$183.19m of export revenue by delivering 5.469Mt of cement and clinker overseas in 8MFY20-21, compared to US$193.92m from 5.156Mt of exports in the year-ago period. This represents a 5.5 per cent fall in dollar terms but reflects growth of 6.1 per cent in terms of volumes during this period, as reported by FBS. 

In local currency terms, the export value decreased by 1.3 per cent to PKR29.86bn (US$191.3m) from PKR30.24bn during this 8MFY20-21. Nevertheless, the cost per tonne fell from US$37.61/t in 8MFY19-20 to US$33.49/t in the July 2020-February 2021 period.

In February 2021 alone, revenues fell to US$19.52m on the export of 537,452t from US$20.74m with cement and clinker exports of 607,441t in January 2021. This represents a substantial shrinkage of 5.9 per cent and 11.5 per cent in terms of value and quantity, respectively.

Production in 7MFY21
The Large Scale Manufacturing Industries Index (LSMI) has continued to surpass pre-COVID levels, with economic recovery continuing to be in full swing. The latest data released by PBS suggests that LSMI output during 7MFY21 witnessed an increase of 7.9 per cent YoY and an increase of 9.1 per cent YoY, during January 2021.

Over the period, Pakistani cement production increased by 23.1 per cent YoY to 28.856Mt compared to 23.438Mt a year earlier. The upward trend was also observed in January 2021, when production rose by 38.1 per cent to 4.281Mt versus 3.1Mt in the same month last year.

Published under Cement News