Pakistan Cement export posted an increase of some 12 percent, month-on-month, during the first month of current fiscal year 2013-14. According to July 2013 figures released by All Pakistan Cement Manufacturers Association (APCMA), year-on-year basis, cement exports registered a slight decline of 1 percent to 0.75 million tons in July 2013 compared to 0.76 million tons in July2012.
"It seems that 12.5 percent MoM improvement in exports is likely due to high export to Afghanistan, where Pakistani cement exports were on decline due to cheap Iranian cement," said Furqan Ayub an analyst. He said last month influx of Iranian cement at competitive prices to Afghanistan provided stiff competition to Pakistani cement manufacturers which resulted in lower sales. "Although the export break-up is not available as yet, but we believe the current improvement in exports is likely due to recovery of sales to Afghanistan.
According to APCMA local cement dispatches slumped by 10.4 percent, YoY, to 1.85 million tons in July 2013 down from 2.06 million tons in July 2012. Cumulatively, cement dispatches posted a decline of 10 percent MoM basis and 8 percent YoY basis. Overall cement dispatches decreased to 2.581 million tons in July 2103 from 2.816 million tons in July 2012
The low sales figure has been attributed to Ramazan, which is customarily associated with a slowdown in construction activity; analyst said and added that heavy monsoon rains in the country coincided with the Ramazan, further exacerbating the situation. "We believe this is a temporary phenomenon and cement sales will rise once the construction activity picks up," he added.
Although sales in August 2013 are also likely to remain subdued due to Eid holidays and heavy rain plus some flooding, given the government's historical focus on infrastructure development; it is being anticipated that cement demand may kick off from second quarter of current fiscal year.
