According to a report of All Pakistan Cement Manufacturers Association, the News reported that Pakistan cement sales have depicted a growth of 3% on YoY basis to 13.12 million tonnes during the first 5 months of the current fiscal year.
Local cement sales were up by a healthy 7% on YoY basis to 9.48 million tonnes however lower exports at 3.64 million tonnes continued to dampen the overall cement sales growth during the period under review.
According to a report of Global Research, despatches during November were up by a hefty 17% on YoY basis whereas on a sequential basis, a decline of four percent was witnessed during the month.
November data depicted 20 percent growth in the local sales; however, local despatches depicted a decline of 6% during the period under review due to the onset of winters.
Local despatches in the North are traditionally more adversely impacted during winters due to the harsh weather conditions in the region. During November, local sales in the North declined by 6% on MoM basis.
Exports continued to dampen despatches as it witnessed a decline of four percent on YoY basis to 3.64 million tonnes. Faltering exports to Afghanistan at 2.06 million tonnes have been a major contributor to the decline in the overall cement exports from Pakistan in the current fiscal year.
Moreover, exports to India also declined by 38.5% to 0.18 million tonnes. Exports through sea after dipping to their low of 3.2 million tonnes last year started to consolidate and depicted a growth of 1.5% during the 5 months of the current fiscal year to stand at 1.39 million tonnes.
After a phenomenal financial close of 2012, where earnings grew by 7.6 times for the cement sector in Pakistan double digit earnings growth is in the offing again in fiscal year 2013 based on the margin increase.
Cement prices increased by 12% on YoY basis in 2012 and would sustain their all time high levels in FY 2013 at PKR 445 per 50 kilogram bag due to a strong collusive pricing arrangement between the local players.