High cost impacts Pakistan cement export in 3MFY22 

High cost impacts Pakistan cement export in 3MFY22 
24 October 2022


According to Intermarket Securities Ltd, in 1QFY22-23 (July-September 2022) overall cement industry utilisation stood at 56 per cent, compared to 72 per cent in the same period last year. The fall in capacity utilisation was also partially reflected in exports. The overall increase in manufacturing cost has discouraged cement companies in the South from exporting cement/clinker at current prices, which have not moved in tandem with cost. In addition, higher international coal prices coupled with recent floods have made the export market unattractive for the industry.
 
Pakistan’s cement industry earned US$46.35m by dispatching 941,532t of cement and clinker overseas in the 1QFY22-23, compared to US$55.20m from 1.555Mt of exports in the year-ago period, says data released by the Pakistan Bureau of Statics (PBS). Therefore, the sector saw a YoY reduction of 16 per cent in dollar terms and 39.5 per cent in volume in the 1QFY22-23. However, exports valued in Pakistani rupees rose by 15 per cent to PKR10.51bn during this period.
 
On a positive note, in September 2022 alone, export revenues saw an increase of 151.4 per cent MoM to US$29.13m on the shipment of 612,404t, compared to US$11.55m from 223,987t of exports in August 2022. The quantity increased by 173.4 per cent during this period.
 
However, if compared with September 2021 (US$33.81m from 1.020Mt), the trend was revered as an export drop by 13.8 per cent in cost and volumes by 40 per cent.
 
Meanwhile, on an encouraging note, Karachi Port Trust (KPT) adds that it coordinates closely with exporters to enhance the country’s cement exports and extend all possible facilities per their requirements. In this regard, KPT is paying special attention to cement exporters, raising Pakistan’s cement exports to as far as the USA. During the last quarter of the FY21-22, KPT handled 60,109t of cement. In the 1QFY22-23, KPT dealt with the export of 125,660t of cement, a 48 per cent increase from the previous quarter. Taking into account the orders in the pipeline, these volumes are expected to grow further.
 
Pakistan has been exporting clinker or cement to Bangladesh, Sri Lanka, Afghanistan, Madagascar, South Africa, Tanzania, USA and India.
 
 

Published under Cement News