Pakistan exports decline in 10MFY13-14

Pakistan export volumes and revenues have continued to decline in the first 10 months of the current fiscal, mainly due to a decline in shipments to Afghanistan. On a more positive note, despite the disappointing performance on the export front, utilisation rates have climbed to a five-year high.

During the July 2013-April 2014 period, Pakistan exported 6.92Mt of cement on revenues of US$415.03m compared to 7.298Mt at US$468.74m. This translates to YoY falls of 5.18 and 11.46 per cent in terms of quantity and value in dollar, respectively. Similarly, in terms of the Pakistani rupee, exports dropped by 4.82 per cent to PKR42.97bn over July – April, 2012-13 period.

The average export price of cement fell by 6.61 per cent to US $59.97/t from US$64.22/t in the same period of the previous fiscal.

Afghanistan exported 3.052Mt (-16.84 per cent) and India 506,012t (-32.46 per cent). However, exports to the rest of the world rose by nine per cent

April – mixed performance
On a MoM basis, April 2014 export volumes were 14.93 per cent higher at 702,546t but fell by 5.91 per cent in terms of value to US$42.27m.

If compared with April, 2014 data (776,137t at $47.62m), there was a fall of 9.48 and 15.43 per cent in volume and value terms, respectively.

Utilisation rates climb
Despite the decline in exports, the sector has managed to achieve capacity utilisation of 75.21 per cent during first 10 months of current fiscal year – the highest level for five years, according to the All Pakistan Cement Manufacturers Association (APCMA). Industry observers are expecting levels to increase to 80 per cent by the end of June 2014.