Pakistan registers higher 11MFY21 export and 10MFY21 production

The Federal Bureau of Statistics (FBS) of Pakistan has released cement export and production data for the July 2020-May 2021 (11 months) and July 2020-April 2021 (10 months) periods, respectively. Both segments of cement post rising trends in export and local production. 

Export values and volumes increased during the 11MFY20-21 period, but the average export price remained weaker, reflecting a poor price market for cement and clinker. AHL Research reports that exports were climbing during this period due to a jump in northern exports to Afghanistan as well as significant southern exports to Bangladesh and Sri Lanka. Meanwhile, local output increased, driven by high local demand, enabled by the central bank continued direct and indirect incentives.

Exports in 11MFY20-21
Pakistan's cement industry in 11MFY20-21 earned US$253.584m of export revenue by dispatching 7.442Mt of cement and clinker overseas, compared to US$242.505m from 6.57Mt of exports in the year-ago period. The export figures represent a noticeable growth of 4.6 per cent in dollar terms and a rising double-digit growth of 13.3 per cent in terms of volumes during this period on a YoY basis, as reported by FBS.

In local currency terms, the export value increased by seven per cent to PKR40.722bn (US$253.584m) from PKR38.054bn during this 11MFY20-21. Nevertheless, the cost per tonne fell from US$36.91/t in 11MFY19-20 to US$34.07/t during the July 2020-May 2021 period. 

While, in May 2021 alone, revenues surged to US$28.527m on the export of 818,471t from US$15.012m on the export of 377,016 cement and clinker exports in April 2021, as the negative impact of COVID-19 in the world supply chain subsided. The export trend represents a substantial MoM rise of 90 per cent and 117.1 per cent in terms of value and quantity, respectively.

Similarly, in the comparison period of May 2020, when exports stood at US$19.302m on the shipments of 611,284t of commodities, exports grew by 47.8 per cent in value and 33.9 per cent in quantity, YoY.

Production in 10MFY21
The overall output of Large Scale Manufacturing Industries Index (LSMI) increased by 12.8 per cent for July 2020-April 2021 compared to July 2019-April 2020 in Pakistan, including the local cement production, FBS estimated.

During this cumulative 10-month period of July 2020-April 2021, Pakistan's cement production increased by 25.4 per cent, YoY to 41.845Mt compared to 33.379Mt a year earlier. The upward trend in cement production was also observed in April 2021 alone, when production rose by 27.4 per cent to 4.2261Mt versus 3.316Mt in the same month last year.