Pakistan Cement exports reach all time high

[fatman17]

Pakistan Cement exports reach all time high

Sunday, 02 March 2008

Country's cement exports have witnessed a healthy growth of 140 percent to all-time high level of 4.2611 million tonnes during the first eight months of the current fiscal year in the wake of rising international demand, industry sources said. Regional cement shortage played a key role in achieving landmark cement exports, while enhanced production of the local cement factories is the another prominent reason behind this huge increase, they added. Sources said that strong external demand from Gulf states as well as neighbouring country India has witnessed, which pushed the overall exports to the all time high level.

The statistics made available from the All Pakistan Cement Manufacturers Association (APCMA), which shows that cement export registered a robust increase of 2.48 million tonnes during July-February of the current fiscal year and it has touched a new mark of 4.261 million tonne mark as compared to 1.774 million tonne over the same period last year.

The exports during the first eight months are also some 1.073 million tonnes higher than 3.188 million tonnes in the same period last year. Therefore, the overall exports have reached new peak during the July-February of the current fiscal year.

Local dispatches has gone up 17.16 percent to 14.433 million tonnes during the July-February of the current fiscal year as compared to 13.469 million tonnes over the same period last fiscal year.

Total cement sales have augmented by 22.64 percent in January February of the current fiscal year over the same period of last fiscal year as a result of enhanced construction activities due to mild weather across the country and increased exports to neighbouring countries.

After the current upsurge overall dispatches have reached 18.694 million tonnes in fiscal 2008 as against the 15.243 million tonne in fiscal 2007, depicting an increase of 3.451 million tonnes. Sources said that expansions have come online in major cement mills and cement piling up at lower prices in anticipation of its increase and the pleasant weather to have further turned favourable for construction activities in both North (Punjab and NWFP) and South (Sindh and Balochistan) regions.

Cement exports posted a 96.75 percent growth, while total sales grew by 12.8 percent to 13.19 million tonnes in February 2008. Following the current augmented exports during February reached 0.642 million tonnes and local sales touched 1.8465 million mark.

"India has become a large importer of Pakistan cement and we are expecting further rise in the near future," industry sources said. Huge supply of cement against the low demand has decreased the prices in the local market and due to high competition cement companies are decreasing their prices to capture the market, they added. They said that presently Pakistan is being exporting cement to Dubai, Afghanistan, Iraq, India, and some other countries.

 

[Spring Onion]

Indeed Sir we are doing good with regard to this commodity.
The quality is also very good. Recently we had been exporting alot to India.

 

[abbasirauf]

Despite exports, we are mentioning in every thread, I don't understand why our economy is degrading day by day?

 

[Cement]

Whats the general consensus on the Cement market from within Pakistan a few years on? By all accounts the Cement Manufacturers are finding business easy to come by, particuarly with the likes of India shooting themselves in the foot by raising taxes on local produce. I think the main Cement Exporters in Pakistan have said that possibly rising coal prices may inflate local Cement FOBs so perhaps they will become less competitive over time. Are India considered one of the leading Cement Exporters?

 

[Nothing]

Whats the general consensus on the Cement market from within Pakistan a few years on? By all accounts the Cement Manufacturers are finding business easy to come by, particuarly with the likes of India shooting themselves in the foot by raising taxes on local produce. I think the main Cement Exporters in Pakistan have said that possibly rising coal prices may inflate local Cement FOBs so perhaps they will become less competitive over time. Are India considered one of the leading Cement Exporters?

During 2007-08, the export of cement from India touched the 2.16 million tonnes mark. However during 2008-09, the cement export from India stood at 1.46 million tonnes.
But in India local consumption is very high ... because of lots of infrastructure development and new towns under construction ..cement demand is time high. We will need more Pakistani cements thats for sure .. if price will remain competitive

Cement production during April to January 2009-10 was 130.67 million tonnes as compared to 115.52 million tonnes during the same period for the year 2008-09. Despatches were estimated at 129.97 million tonnes during April to January 2009-10 whereas during the same period for the year 2008-09,it stood at 115.07 million tonnes.

We are second largest cement producer and on competitive index for cement industries we are may on top or second (don't know) even quality of cement is good .. but still per capita consumption is very low... so our demand will surpass our production capability ..
Its nice to import cement .. finally we are using it for infrastructure ..

some more info
http://www.arc.unisg.ch/org/arc/web.nsf/1176ad62df2ddb13c12568f000482b94/43cf0caeed566faac12571d30061daac/$FILE/India%20Symposium_IBEF_Sectoral%20Reports_Cement.pdf

 

[fatman17]

cement industry has benefitted by exports to afghanistan, m/east, iran and now india, but politics and 'knee-jerk' reactions by both india/pakistan is hampering the export of this commodity to india.
the other inhibitor cld be the availability of natural gas for the local cement industry. never-the-less it is a profitable industry.

 

[fatman17]

Despite exports, we are mentioning in every thread, I don't understand why our economy is degrading day by day?

overall the economy is in bad shape, but certain sectors are doing ok, like cement, IT, export of rice and wheat, mollases etc. exports will touch US$25 billion this fiscal year. having said that, the potential is much closer to US$50 billion and there are many sectors where the govt is 'foot dragging' like mining sector (gold, copper, iron ore, gemstones etc).

 

[PeacefulIndian]

Conflicting news I must say. I had read this -

Which one is true?

Cement exports decline 20% – The Express Tribune

KARACHI: Cement sales in the domestic market rose seven per cent to 1.91 million tons in January compared with December 2010 while exports fell 20 per cent to 0.57 million tons, shows data released by the cement manufacturers association.
However, in the first seven months (July to January) of the current fiscal year, cement sales in the domestic market fell 9.63 per cent to 12.01 million tons while exports were down 17.03 per cent to 5.19 million tons.
Total cement sales for the seven-month period were 17.2 million tons, a decline of 12.01 per cent, compared to the corresponding period of last fiscal year. The decline is in contrast to the previous period of 2009-10, when local consumption of cement increased by 14.7 per cent, but overall increase in sales was 9.3 per cent due to a decline in exports.
Out of the total operational production capacity of 41.23 million tons, the northern part of the country produces 34.26 million tons, while the southern part produces 6.97 million tons. Another 2.68 million tons of capacity will be added this fiscal year, with the commencement of operation at the new Fauji Cement plant.
The All Pakistan Cement Manufacturers Association (APCMA) said the capacity utilisation has constantly declined since 2004-05 when it reached the peak of 91.32 per cent. In 2009-10, it dropped to 76.53 per cent, whereas in the seven months of the current fiscal year, it was 71.55 per cent.
The mills operating in the north lost almost all export orders through sea because of exorbitant transportation charges from plants to seaports, said a spokesperson for APCMA. “The transportation cost has made cement export unviable for plants located in upper parts of the country,” official added.
Published in The Express Tribune, February 9th, 2011.

 

[Cement]

Thanks for the replies, yes there is alot of conflicting information in regards to whether or not Pakistan Cement Exports are good or bad. I say good or bad because even though Cement Exports may show a decline on paper, the fact is that local demand went through the roof after the Pakistan floods so one has to ask whether or not the manufacturers deliberately cut their export quotas to service local requirements - this would mean that the raw export figure doesn't tell the real story of the Cement Industry as a whole.

I know that generally Cement Manufacturers in Pakistan have an excellent client base in Iraq and Afghanistan, also Kuwait. This seems to grow each year so I suspect that by the end of this year Cement Exports will show an increase.

 

[Veeru]

Whats the general consensus on the Cement market from within Pakistan a few years on? By all accounts the Cement Manufacturers are finding business easy to come by, particuarly with the likes of India shooting themselves in the foot by raising taxes on local produce. I think the main Cement Exporters in Pakistan have said that possibly rising coal prices may inflate local Cement FOBs so perhaps they will become less competitive over time. Are India considered one of the leading Cement Exporters?

1. India is the 2nd largest cement producer in the whole world.

2. India produces around 15 times more cement then pakistan (as per 2005 data) but due to our growing economy all of it get consumed in building infrastructure, factories, buildings, apartments, shopping malls etc. etc.

3. In January 2010, rating agency Fitch predicted that the India will add about 50 million tonne cement capacity in 2010, taking the total to around 300 million tonne per year. Indian companies are building new plants and expanding existing to increase the production to new level.