The News reported that total cement off take in October stood at 2.94 million tonnes against 2.92 million tonnes recorded during the same period last year.
Analysts said that the contribution of local sales in the overall sales mix continues to increase with the domestic dispatches at 2.09 million tonnes up by 5.8% while exports were recorded at 0.86 million tonnes down by 9.7%. Export volumes in October remained lacklustre, declining by 9.7% to 0.86 million tonnes.
Mr Furqan Ayub an analyst at JS Global said that “Interestingly exports in India have soared to 0.09 million tonnes highest exports since May 2008 from 0.043 million tonnes however the biggest export market continues to be Afghanistan, constituting 57% of the total exports.”
He said that with cement retail price of over PKR 410 to PKR 415 per bag locally incentives to export remain low. Additionally demand itself has jaded in many of the export markets. Thus explaining the 26% drop in exports via sea to 0.28 million tonnes.”
He said that average retention prices approximately rose by 31% in the Q1 of the current fiscal year as the industry remained adamant on passing through the cost to the end user. Considering this resolute attitude of the industry, analysts expect high cement prices are likely to remain firm.
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