Pakistan cement export volumes fall 20.8% YoY
During the first two months during FY12-13, Pakistan exported 1.154Mt of cement and earned US$91.356m compared to 1.457Mt at US$75.891m in corresponding period last year. This shows that cement export fell by 20.79 per cent in terms of quantity but rose by 20.38 per cent in terms of value in dollar over corresponding period last year respectively, according to data released by Pakistan's Federal Bureau of Statistics.
However, in terms of Pakistani currency, exports rose 31.69 per cent during July-August FY13. The average export price of cement increased 19.01 per cent to US$79.16/t in 2MFY13 from US$52.09 in 2MFY12.
While on negative note, in August 2012 alone, Pakistan exported 609,429t of cement and earned US$45.159m compared to 545,125t at US$46.197m in July 2012. This showed an increase of 11.80 per cent in terms of quantity but reflects a loss of 2.25 per cent in terms of value in dollar on a MoM basis. Furthermore, if compared with August 2012 data of 717,085t cement at US$36.818m, cement exports recorded a fall of 15.01 per cent in terms of quantity but recorded a growth of 22.65 per cent in terms of value in dollars on a YoY basis.
The All Pakistan Cement Manufacturers Association (APCMA) were unhappy with cement exports earning. A spokesman said the cement exports provided manufacturers a relief at the start of this century when the cement exports jumped from zero in 2001-02 to 10.981Mt in 2008-09. Exports have since been declining reducing to only 8.568Mt in 2011-12. The decline, he added, has continued into this fiscal as well. Exports to India have decreased by 38 per cent in the first two months of this financial year to mere 75,784t. Exports to India in fact have been on constant decline ever since the two countries opened their borders for liberal bilateral trade. “The decline is not due to lack of cement demand in India but because of very stringent non-tariff barriers erected by our neighbour,” he said.
He added that India has not yet removed the trade barriers it promised to Pakistani planners on numerous occasions. The export of cement to India is allowed through trucks and rail but the industry is unable to export as much as quantity due to trade barriers, labour shortages at Indian side of Wahga border and non availability of Railways wagons. Other barriers like delay in registration of cement plants for granting export license still exist, he added.
He said exports to Afghanistan are also on decline due to slowing down of its economy. The cement exports to Afghanistan he added declined by almost five percent during the first two months of this fiscal.
