Pakistan exports hit Punjab and Himachal plants

Cement plants in Himachal Pradesh and Punjab, India, have called for 11 per cent duty on imports from Pakistan as they see capacity utilisation levels fall to 75 per cent. They have also suggested capping of entry points and ports for cement imports into India as additional safeguards against cement dumping from Pakistan.

Of a total cement demand of 8Mta in Punjab, imports are now as high as 1.5Mta, rising by 24 per cent YoY in the quarter ended March 2018. The majority of imports are from Pakistan's cement producers.

"The (Indian) industry had built capacity in anticipation of increased demand due to the impetus given to housing and infrastructure sectors. The demand scenario, however, remains subdued," said an executive of a Himachal Pradesh-based cement plant, talking to the Tribune paper.

Pakistan exporters are resorting to predatory pricing, executives said. While cement is sold in Pakistan at US$100/t, it is dumped in India at US$63-65/t, they added.

India is Pakistan's second-largest export market for cement after Afghanistan, which allows imports without basic customs duty since 2007. However, Pakistan imposes 11 per cent duty on imports from India, the industry experts said. Pakistan's exports to Afghanistan have fallen due to competition from Iranian exporters.