Cement exports decline by 2%, local sales up by 1.6% in 9-mnths FY14

AFP

KARACHI: Total cement sales in the country including export and local dispatches during July to March 2014 current fiscal rose marginally by 0.7 percent to 24.705 million tonnes as compared to 24.542 million tonnes in same period last fiscal.
However, cement exports from the country declined by 2 percent on yearly basis to 6.044 million tonnes in the nine months of fiscal year 2013-14 (FY14) while it was 6.169 million tonnes in the same period of FY13, according to the preliminary statistics available with Invest Cap Research.
Meanwhile, local cement dispatches witnessed a 1.6 percent increase in 9-month period of FY14 to 18.66 million tonnes as compared to 18.373 million tonnes in the corresponding period of last fiscal.
Similarly, total cement dispatches during the month of March 2014 registered 15.5 percent monthly growth to 3.139 million tonnes when compared to 2.719 million tonnes of total cement dispatches including exports and local in the month of February 2014. However, on yearly basis it declined by 5.6 percent if compared to the total cement dispatches of 3.326 million tonnes in March 2013.
During March 2014, cement exports from the country settled at 752,000 tonnes, which was 28.9 percent more than 583,000 tonnes cement exports in February 2014 however it was 2.2 percent lesser then if compared to 769,000 tones of exports figures of March 2013.
Local dispatches alone in March 2014 stood at 2.387 million tonnes, representing 11.8 monthly increase as compared to 2.135 million tonnes in February 2014. However it declined by 6.7 percent on yearly basis when compared to 2.558 million tonnes in same month of 2013.
Invest Cap’s analyst said, “Going forward, starting of Public Sector Development Programme (PSDP) expenditure by the government is expected to fuel up the local cement demand”. Currently, small and medium size dams, new highways and small houses schemes are under consideration which are expected to boost the cement demand further. Moreover, likely provision of Most Favoured Nation (MFN) status to India will also add the further value in the export dispatches, he added.
Sunrise Capital’s analyst said construction boom might bode well for cement mid size and mega dams, real estate developers and construction activities likely to revive the economic engine of the country.
We think prospects of cement industry are bright enough to attract fresh capital injunction in the country which not only boost cement demand but also create job creation in the economy, he added.
As far as exports are concerned, post election regime in India will likely fuel the trade liberalisation between two countries resultantly bright chances of Pakistan cement to penetrate into one of the largest economy of over $1.7 trillion, said the analyst.

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