The News reported that Pakistan is likely to export 100,000 tonnes of cement to India in next 3 months after getting permission to resume exports.
Mr Furqan Punjani an analyst at Topline Securities said that the Bureau of Indian Standards has renewed licenses of Pakistani cement exporters allowing them to export the commodity. During the first 8 month of current fiscal year, Pakistan exported 320,000 tonnes of cement to India which was 24% less than the same period last year.
He said that Pakistan is expected to export an additional quantity of up to 100,000 tonnes of cement to India during the remaining last 3 month of the current fiscal year.
Mr Asad Siddiqui an analyst at InvestCap said that BIS licence was essential for all kinds of exports to India. Majority of cement exporters got their licenses expired in the last four to five months. But Mr Siddiqui was quick to add that the renewal did not indicate that India was allowing export through land rout of Wagha Border but it would continue to do so through rails.
Mr Punjani said that Pakistani cement has an edge over Indian cement in terms of prices in areas where the landed cost is lower. India has planned to add more production lines in future. India has a cement manufacturing capacity of 261 million tonnes which is expected to increase to around 290 million tonnes by the end of fiscal year 2012.
He said that despite chances of major expenditure on construction, supply glut would prevail in Indian markets. This casts pall over the future of Pakistani cement exports to New Delhi compared to fiscal year 2007 to 2008 when there was an acute shortage of cement in India and it imported around one million tons from Pakistan.
No comments:
Post a Comment