Pakistan: positive expectations for FY18

The Pakistan cement industry is likely to wrap up FY18 on a positive note. Provisional data show that cement dispatches for June 2018 increased three per cent YoY to 2.81Mt, when compared with 2.73Mt in June 2017, according to a report of IGI Finex Securities Ltd.

This brings FY18 dispatches to date to 45.72Mt, up 13 per cent YoY. In the equivalent period of FY17, deliveries reached 40.32Mt. However, MoM a fall of 28 per cent was noted, which was mainly attributed to the holy month of Ramadan and the festive holidays following.

Exports are expected to show an increase of one per cent to 4.72Mt from 4.66Mt in the previous year.

Cement prices in the country edged up two per cent MoM, according to the weekly data published by the Pakistan Bureau of Statistis. The average national price reached PKR561/bag, following an average of PKR547/bag in May 2018. The rise has been attributed to an effort by industry players to compensate for the impact of the enhanced FED.