Total Dispatches: 27.6m tons, were the total sales so far in the current fiscal year, registering a modest growth of 3%.
KARACHI:
Following a surge in demand in March, cement sales in the country are expected to remain subdued this month, according to provisional data for first 22 days of April.
Though one week is left before the release of final figures, the results will not be surprising for analysts who say cement demand strengthens every March and in comparison it can drop in April.
Cement sales in the domestic market registered a 9% decline to reach 2.32 million tons in April compared to March.
Despite the lower demand, sales in April were still above the monthly average of 2.04 million tons for the first nine months (July-March) of fiscal year 2012-13.
“We believe the monthly decline in local dispatches is attributable to seasonal variation as has been witnessed in the past. Exports having contributed 24% to total dispatches, posted a decline of 7% month-on-month, (reaching) 713,000 tons,” Investcap Research said in a recent report.
“Cement sales in March always stay high because it is a peak season. If it drops in April, it will not be a big surprise for us,” JS Global Capital analyst Atif Zafar said.
Apart from being the peak season, analysts say cement demand this March also stood higher because of allocation of funds for development projects for speeding up work on them before elections.
“Funds were earmarked for election-related development projects before March and increased construction activities should not reflect in April data. So, any fall in April sales should not surprise anyone,” Zafar added.
Since the data is incomplete, final figures may present a different picture by the end of the month. “I think final sales will be the same as in March,” another cement sector analyst commented, but asked not to be named.
Total sales so far in the current fiscal year (July 2012 to date) reached 27.6 million tons, registering a modest growth of 3% compared to a year earlier.
In the northern region, sales rose 6% year-on-year to 16.92 million tons and dispatches in the south increased 2% to 3.77 million tons. Exports fell 2% to 6.88 million tons in 10 months.
Published in The Express Tribune, April 28th, 2013.
Like Business on Facebook to stay informed and join in the conversation.
COMMENTS
Comments are moderated and generally will be posted if they are on-topic and not abusive.
For more information, please see our Comments FAQ