Cement sales surge by 11 per cent in 2010

Cement sales are expected to surge by 11 per cent to 34.2 million tons in fiscal year 2010 against 30.7 million tons last year, according to Topline Securities.

This is primarily because of the 21.3 per cent increase in local market sales which is estimated at 23.5 million tons from 19.3 million tons, led by a 15.3 per cent growth in the construction sector, said Topline Securities analyst Furqan Punjani.

In fiscal year 2009, there was a slowdown in construction activities because of the global economic crisis but this slowdown ended in fiscal year 2010 and construction activities picked up, said JS Global Capital analyst Syed Atif Zafar on Tuesday.

Export sales are expected to show lacklustre performance and fall by six per cent even after the government’s initiative to give 35 per cent inland subsidy to manufacturers to remain competitive in international markets, said Punjani.

Pricing power will shift to the manufacturers by the end of fiscal year 2011 as the demand-supply gap will reduce, said Punjani.

Published in The Express Tribune, July 7^th, 2010.