Pakistan records mixed trend of cement revenue in 8MFY19-20

The export of cement/clinker from Pakistan during the first eight months of FY19-20 saw a fall of 5.80 per cent in terms of value but record growth of 6.45 per cent compared to 8MFY18-19, says data released by Federal Bureau of Statistics.

The breakdown of data shows that country’s cement sector earned US$193.92m by exporting 5.151Mt of cement and clinker between July 2019 – February 2020, compared to US$205.86m from 4.839Mt of exports in the comparative year-ago period. This represents a 5.47 per cent decline in terms of value in dollars but records a growth of 6.45 per cent in quantity during this period.

In local currency terms, the export value increased by 11.84 per cent to PKR30.24bn (US$190m) from PKR27.04bn during this export period. However, the value per tonne fell from US$42.53/t to US$37.64/t.

However, in February 2020 alone, export revenues recorded an MoM negative growth to US$23.79m with cement exports of 644,711t, compared to US$24.87m from 716,950t of exports in January 2020. This represents a contract of 4.36 and 10 per cent in terms of dollar value and quantity, respectively.

In addition, when compared with data of February 2019 (US$21.51m from 505,564t), total positive trends were observed. The value of exports increase by 10.56 per cent and 27.52 per cent in terms of quantity respectively on a YoY basis.

According to the All Pakistan Cement Manufacturers’ Association, jump in exports is understandable as it is a result of the benefits of a huge decline in rupee value. Exports from the north remained subdued due to lower demand in Afghanistan and zero exports to India through the Wahga border.