Pakistan ranked 5th in cement exports, surpasses Germany

[Naveed Yaseen]

By Moonis Ahmed

KARACHI: Pakistan has been ranked 5th in the world’s cement exports after a jump of 47 percent in exports during last fiscal year, the Global Cement Report shows.

According to the report, China ranks first with 26 million tonnes in exports, while Japan grabbed the second position by exporting 12 million tonnes. The third largest cement exporter in world is Thailand with around 12 million tonnes, followed by Turkey with 10.6 million tonnes.

Pakistan has left Germany behind by exporting 11 million tonnes of cement during last fiscal year. Germany now stands at 6th position with 9 million tonnes exports.

Irfan Amanullah, Chief Financial Officer of Attock Cement Limited, while talking to Daily Times said that Pakistan secured this position because of high demand and by capturing new markets.

He said that Pakistan could achieve the mark of 13 to 14 million tonnes exports by the end of the fiscal year if the government provides better infrastructure facilities.

He was of the view that the demand had remained firm during the year that helped to reach this mark in exports. “The new markets explored by the exporters include some of African countries, Qatar and Iraq,” he said.

He expected sales for the year to grow by five percent. Total dispatches, however, increased by a meager two percent in 2008-09.

According to the figures released by All Pakistan Cement Manufacturers Association (APCMA) show local dispatches stood at 19.3 million tonnes (down 14 percent YoY) however exports depicted an astounding jump of 47 percent YoY to 11.3 million tonnes during the last fiscal year.

“Record Public Sector Development Programme allocation (Rs 621 billion) in the budget FY10, reduction in excise duty by Rs 10 per bag and declining interest rate scenario, would prove to be positive factors for the growth of the sector,” an analyst said.

Economic slowdown, uncertain political and security situation along with budgetary constraints hampered infrastructure activities as well as private sector development projects in FY09, Muhammad Rehan, analyst at First Capital said.

He expected local demand to remain robust as the country would embark upon the reconstruction activities in Swat and Malakand when the internally displaced persons return to their devastated homes, shops and schools.

Rehan said that overall industry dispatches are likely to witness a growth of 7 percent in July 2009. The growth in cement dispatches is solely attributable to rising export volumes as domestic demand remained depressed on every comparable period.

However, on M-o-M basis, this represents a decline of 8 percent as compared with June 2009. In July 2009, cement plants of the country operated at 80 percent capacity utilisation as compared with 81 percent utilisation in the same month of last year.

Cement exports of the country continue to depict healthy growth trend and recorded 45 percent growth on Y-o-Y basis. However, on M-o-M basis, cement exports represented a meager decline of 3 percent.

Segregating the data, weight of sea based cement exports during the month was recorded at 68 percent in overall cement exports as compared with 63 percent in July 2008, he said.

Furthermore, cement exports to India during the month were recorded at 63,000 tonnes, which is lower when compared with the initial monthly average of 100,000 tonnes.

http://www.dailytimes.com.pk/default.asp...2009_pg5_4