Pakistan’s Cement exports fall during 4MFY21-22

Pakistan’s Federal Bureau of Statistics (FBS) reported a 38 per cent fall in exports in terms of dollar value and a 44.2 per cent decrease in export volumes in the 4MFY21-22 when compared with the year-ago period. The cement industry earned US$65.45m of export revenue by dispatching 1.804Mt of cement and clinker overseas, compared with US$105.54m from 3.233Mt of exports in the 4MFY21-22. In local currency terms, exports sales declined 37.6 per cent YoY to PKR10.89bn.

In October 2021 alone, export revenues declined to US$10.24m on the shipment of 248,833t from US$33.81m on the export of 1.02Mt cement and clinker exports in Sept 2022. This translates export down by 69.7 per cent and 75.6 per cent MoM in terms of value and quantity, respectively. Similarly, when compared with October 2020, when exports stood at US$33.24m on the shipments of 1.027Mt, exports declined by 69.2 per cent in value and 75.8 per cent in quantity YoY.

AKD research pointed out that local sales are expected to remain strong while export contracts are likely to happen moving forward. However, the margin on export is expected to decline significantly given the increasing cost of coal while export prices remain the same.

Production in 3MFY21-22
The overall output of the Large Scale Manufacturing Industries Index (LSMI) increased by 5.2 per cent for July-September 2021-22 compared to July-September 2020-21. However, the local cement production recorded a mixed trend, FBS estimated. Likewise, the LSMI output increased by 1.2 per cent for September 2021 compared to September 2020 and decreased by 0.72 per cent compared to August 2021.

During three months of July-September 2021, Pakistan’s cement production advanced by 1.6 per cent, YoY to 11.496Mt compared to 11.310Mt a year earlier. However, cement production fell in September 2022 alone, when production slid by 2.4 per cent to 4.04Mt versus 4.143Mt in the same month last year.