Pakistan cement exporters earned revenues of US$22.26m on exports of 411,257t cement in January 2017, compared to US$16.36m on 309,868t of exports in the previous month. These figures represent a MoM surge in dollar value and volumes of 36.05 per cent and 32.72 per cent, respectively.
When compared annually with January 2016 (393,994t with a value of US$21.10m), volumes rose by 4.38 per cent and the value by 5.51 per cent, according to the country's Federal Bureau of Statistics.
However, the first seven months of FY2016-17 (July-January, 2017), Pakistani cement producers exported 3.21Mt of cement at a total value of US$167.92m compared with 3.49Mt at US$191.54m in the equivalent period of the previous year. This represents a YoY retrenchment both in terms of value (-12.33 per cent) and volume (-8.22 per cent).
All Pakistan Cement Manufacturers Association (APCMA) has expressed concerns over falling exports to Afghanistan that have declined in the first seven months of this fiscal by 10.88 per cent. It said cement exports to India registered an increase of 79.34 per cent during July 2016 to January 2017. Exports by sea also declined by 19.23 per cent during 7MFY16-17.
Among the factors contributing to a decline in exports, APCMA highlights an increase in fuel prices and other input costs as well as the barriers erected by receiving countries – eg anti-dumping duties imposed by South Africa to protect its local industry.
Moreover, in India, the tariff is around 19 per cent, including a three per cent education tax to promote education in the country. This makes it difficult to compete with India's local manufacturers and other exporting countries which have lower input cost, said APCMA.
