Cement exports rise a healthy 42%

Domestic sales show modest 2.4% growth with capacity utilisation at peak


Our Correspondent June 05, 2018
Total cement dispatches in the first 11 months of FY18 were at record high as cement industry sold 42.915 million tons in July-May 2017-18 PHOTO: EXPRESS

LAHORE: As business activity slowed down in Ramazan, the demand for cement supplies was also slightly affected as domestic sales rose a modest 2.40%, the lowest growth for the current fiscal year.

Exports, however, grew a healthy 41.88% that boosted overall sales growth to 5.69%, according to statistics released by the All Pakistan Cement Manufacturers Association (APCMA) on Monday.

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Traditionally, construction activities slow down in Ramazan, but the modest growth in May indicates the buoyancy is still there.

Exports continued to post a healthy growth after rupee’s depreciation, growing 84%, 80% and 42% in March, April and May 2018 respectively.

In May, the industry sold 3.919 million tons of cement compared to 3.708 million tons in the same period of previous year.

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Sales in the country’s northern region stood at 2.812 million tons against 2.811 million tons in May 2017 whereas in the southern region sales totalled 0.669 million tons in May as opposed to 0.588 million tons in the same month of previous year. Exports from the northern region stood at 0.224 million tons in May 2018 against 0.219 million tons in May 2017. From the southern region, exports totalled 0.215 million tons against 0.090 million tons last year.

Total cement dispatches in the first 11 months of FY18 were at record high as cement industry sold 42.915 million tons in July-May 2017-18 against 37.588 million tons in the same period of previous year, up 14.17%. Capacity utilisation in the 11 months was 94.69%, which was also the highest as previous peak was 93.62% achieved in 1992-93.

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A spokesperson for the association voiced hope that domestic cement consumption would once again rise after Ramazan while a continuous increase in exports was a welcome sign for the industry.

However, he said the major factor behind the rise in exports was the decline in rupee’s value against the dollar that improved competitiveness of cement manufacturers in global markets.

Published in The Express Tribune, June 5th, 2018.

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