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Pakistan’s cement and clinker exports decline

Pakistan’s cement and clinker exports have decreased in the first seven months of the FY21-22. According to local analysts, historically, when domestic demand is booming, exports take a backseat, and when the domestic market is slowing down, exports contribute a critical share in total sales. It makes more economic sense to sell domestically where prices are more desirable and less competitive. The Indian supply has not been restored to date, and there is no momentum in dispatches to Kabul.

The Pakistan cement industry earned US$160.926m in export revenue by dispatching 4.315Mt of cement and clinker overseas in the 7MFY21-22 (July 2021-January 2022), compared to US$163.67m from 4.93Mt of exports in the year-ago period. As a result, the sector saw a nominal slide of 1.7 per cent in dollar terms but reported a double-digit decline of 12.5 per cent in volume during the export period. However, exports valued in Pakistani rupees saw a growth of 3.1 per cent to PKR27.58bn (US$156.4m) during this period.

Pakistan has been exporting clinker/cement to Bangladesh, Sri Lanka, Afghanistan, Madagascar, South Africa, Tanzania and India.

In Jan 2022 alone, export revenues decreased 44 per cent MoM to US$17.15m on the shipment of 393,347t, compared to US$27.77m from 702,698t of exports in December 2021.

However, when compared with January 2021 earnings of US$20.74m from 607,640t, this represented a drop of 17.3 per cent and 35.3 per cent YoY in value and quantity, respectively.

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