Pakistan cement earns an export revenue of US$190m in FY23 (July -June)

Pakistan cement earns an export revenue of US$190m in FY23 (July -June)
24 July 2023

Pakistan's cement industry saw a negative growth in exports in FY22-23 (ended 30 June 2023). Value and quantity were both down during this period.

Pakistan cement industry's export earnings in FY22-23 (ended 30 June 2023) amounted to US$190m, with 4.248Mt of cement and clinker exported worldwide, based on the latest Federal Bureau of Statistics (FBS) data. This represents a contraction from the previous year's earnings of US$224m and 5.733Mt exports, indicating a decline of 15.2 per cent in value and 25.9 per cent in volumes. However, FBS positively noted that in local currency terms, export earnings experienced 21.7 per cent YoY growth, amounting to PKR47.81bn (US$166.6m). This was possible due to a depreciation of local currency value against the dollar, ultimately benefitting cement exports in rupee terms.

Usama Rauf, investment analyst at AKD Securities, has commented that the surge in international coal prices made cement exports unviable initially, with a 49 per cent YoY plunge in 1HFY22-23 at an average Richards Bay coal price of US$276/t. However, as coal prices eased in 2HFY22-23 (~US$132/t), exports recovered, posting 52 per cent YoY volumetric growth compared to last year, absorbing some of the 1HFY22-23 declines. To note, global cement and clinker prices remain stagnant throughout the period.

In June 2023 alone, export revenues increased to US$21.29m on shipments of 540,310t compared to US$18.09m on 465,264t in May 2023. This translates to a 17.7 per cent MoM increase in value terms and 16.1 per cent in volume. Exports also rose YoY by 66.3 per cent in value and 101.6 per cent in quantity compared to export figures of US$12.8m on 267,938t in June 2022. 

Pakistan has been exporting clinker and cement to Bangladesh, Sri Lanka, Afghanistan, Madagascar, South Africa, Tanzania and the USA.

Published under Cement News