Pakistan's local dispatches expected to grow at 3% in September

Experts foresee that total cement sales in September 2017 to observe a decline of two per cent YoY to clock in at 3Mt. Out of which, exports are likely to depict a downward trajectory, dropping by 26 per cent YoY to 387,000t while local dispatches are expected to grow three per cent YoY to 2.6Mt.

According to estimates of local research house, region wise distribution suggests that domestic sales during September in the north and south registered growth of five per cent YoY to 2.2Mt and -3 per cent YoY to 412,000t respectively.

Evaluating top company wise performance for September 2017, it suggests that Cherat Cement (CHCC) and Lucky Cement (LUCK) are likely to outshine their peers with respective domestic dispatch growths of 69 per cent YoY and five per cent YoY to ~136,500t and ~414,800t, respectively. However sales for Fauji Cement (FCCL) and Fecto Cement (FECTC) are projected to plunge by nine perc ent YoY and six per cent YoY, respectively.

For 1QFY18, CHCC is expected to top the dispatch growth chart by depicting a substantial accretion of 111 per cent YoY to 444,000t owing to recent capacity expansion, while sales for LUCK and DG Khan Cement (DGKC) are projected to post growths of 22 per cent YoY and 19 per cent YoY to 1.46Mt and 1Mt, respectively.