PAKISTAN: Cement exporters earn US$499m in FY2011-12

Pakistan cement manufacturer and exporters during FY2011-12 (July-June) exported 8.257Mt of cement and earned US$498.909m compared to 9.299Mt at US$457.448m in corresponding period last year, according to data released by Federal Bureau of Statistics. This shows that cement exports fell by 11.21 per cent in terms of quantity but rose  9.06 per cent in dollar value over the corresponding period last year, respectively


However, on Pakistan rupee terms, exports increased significantly by 14.11 per cent during FY2011-12. The average export price of cement advanced 22.83 per cent to US$60.42/t in FY2011-12 from US$49.19 of FY2010-11, due to depreciation of the local currency.


On the down side, during June 2012, Pakistan exported 612,500t of cement and earned US$52.064m compared to 658,092t at US$56.410m in May 2012. This reflects a fall of 6.93 per cent and 7.7 per cent in terms of quantity and value in dollar, respectively on a MoM basis. Furthermore, compared with June 2011 cement volumes of 855,457t  at US$42.675m,  cement exports recorded a fall of 28.4 per cent in terms of quantity but growth of 22 per cent in terms of dollar value on a YoY basis.


A breakdown of exports shows that Afghanistan was the top importer of Pakistani cement acquiring 4.715Mt compared to 4.726Mt in FY11-12, reflecting a fall of 0.25%. However, exports to India rose 2.60% to 605.453t in FY11-12 from 590,102t in last financial year. Exports to the rest of the world fell 16.96% to 3.247Mt.


According to All Pakistan Cement Manufacturers Association (APCMA), exports declined for the third straight year despite the cement sector adding 3Mta of additional production capacity in the fiscal. Total production capacity increased by 7.23 per cent to 44.217Mt from 42.235Mt in 2010-11, a statement said.


During the last fiscal, the industry's capacity utilisation remained under pressure due to sluggish export demand, non-revival of construction sector in the country, lack of investment in housing sector and government inability to initiate mega projects.


From the peak level of 10.752Mt of 2008-09, the export decreased to 8.257Mt in the year 2011-2012, showing a decline of 20.4 per cent. The buzz created on trade with India has so far not been materialised and exports to that market were only 0.605Mt in 2011-12, well below industry expectations.