Iran nuclear deals may affect cement exports from Pakistan

Pakistan exporters and brokerage houses have shown mixed reactions on Iran's nuclear deal with major world powers, with some expecting Pakistan’s cement exports to decline after the lifting of sanctions on Iran.

“I think the drop in Pakistani cement exports may range between 10 and 15 per cent after December 2015,” an official of a leading cement maker told local media.

An analyst at KASB Securities said the removal of sanctions on Iran will not aggravate current competition situation in Afghanistan, as it is only feasible for Iranian producers to target the Kandahar region (closer to the border), while main market for Pakistani producers is Kabul and Jalalabad
where Iranian cement will not be competitive due to higher transportation cost.

Sadiq Samin of Sherman Securities believed that the nuclear deal between Iran and major world powers is neutral for local cement manufacturers in the medium to long term.