News Analysis |
Pakistan’s cement sector posted a growth in a year on year basis in exports this month, reported the All Pakistan Cement Manufacturers Association and the Federal Bureau of Statistics.
According to Pakistan’s Federal Bureau of Statistics, the Pakistan cement industry earned foreign exchange revenue of US$20.78m by exporting 446,741t of cement in May 2018 compared to US$19.147m on 404,898t of cement in previous month. This represents a Month on Month growth of 8.6 percent and 10.3 percent in terms of value and quantity, respectively. When compared with the figure of May 2017, earning US$14.863m on 283,193t of cement, cement exports advanced Year on Year at 39.9 percent and 57.8 percent in terms of value and quantity, respectively.
On cumulative basis, export revenue between July 2017 and May 2018 stood at US$206.533m on 4.189Mt of cement against US$219.812m on 4.166Mt in corresponding 11 months of the last fiscal year. This reflects a Year on Year fall in value by six percent, but a 0.6 percent rise in volumes on a Year on Year basis. However, the value of cement fell from US$52.75/t to US$49.29/t during this period.
In view of the China Pakistan Economic Corridor being developed left right and centre, the growth posted in Cement production and exports could help promote the development sector’s international trade rating.
The APCMA statistics board is divided into two based on geographic distribution; North and South regions. For the financial year starting with July, 2017, the local distribution for the North region was 2,423,484 units and the exports from the North region were 337,733 units (in Metric Tonnes). For the South region in the month of July, the local produce was 483,061 and the export from the region was 137,966, making the total produce 3,382,244.
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For the month of August, the total produce went up by 383792 units, totaling 3,766,036 units. For September, the produce drastically fell at 3,199,863 units, making the difference about 5,66,173. The month of October brought a dramatic increase and the upward trajectory took the produce to 4,221,552, with a production gap of about 1,021,689. In the months of October, November and December the produce fluctuated between 4,221,552, 3,942,115 and 3,730,536.
The start of the year brought with it an upward trajectory and the production went up to 4,083,581 units, dropping slightly in February to 3,780,520 units, only to be picked up again in March at 4,652,037 units countrywide and exports, the next three months also followed with a fluctuating trend. Last recorded month witnessed a rise in exports, with total growth posted at 14.17% in a year on year analysis.
Read more: Pakistan Cement exports surge as it shows highest capacity utilization
Pakistani players, especially Askari Cement, a limited ownership Cement mammoth, administered by Askari Welfare Trust under the management of Pakistan Army, have contributed massively to the cement produce in the country. Askari Cement Limited is one of the leading manufacturers of Cement in Pakistan with its two plants located at Wah, District Rawalpindi (Punjab) and Nizampur, District Nowshera (KPK). It originated way back in 1921, got incorporated in 1980 after induction of F.L.S plant from Denmark.
In view of the China Pakistan Economic Corridor being developed left right and centre, the growth posted in Cement production and exports could help promote the development sector’s international trade rating.