Pakistan records diversified export and production results

The Federal Bureau of Statistics (FBS) of Pakistan has released cement export and production data for the July 2020-March 2021 and July 2020-February 2021 periods. It shows diversified trends in export and local production. Export volumes increased during this period, but revenues remained flat in dollar terms, reflecting a weaker price market for cement and clinker. Meanwhile, local output increased on intense local demands and expansion in capacity.

Export
Pakistan's cement industry earned US$210m of export revenue by delivering 6.247Mt of cement and clinker overseas in 9MFY20-21, compared to US$210m from 5.592Mt of exports in the year-ago period. The export data represents a flat performance on the export front in dollar terms, but reflects the growth of 11.7 per cent in terms of volumes during this period, as reported by FBS.

In local currency terms, the export value increased by 3.8 per cent to PKR34bn (US$210) from PKR32bn during this 9MFY20-21. Nevertheless, the cost per tonne fell from US$37.56/t in 8MFY19-20 to US$33.62/t in the July 2020-March 2021 period.

In March 2021 alone, revenues rose to US$26.84m on the export of 776,934t from US$19.52m on the export of 537,452t cement and clinker exports in February  2021. The export trend represents a substantial growth of 37.5 per cent and 44.6 per cent in terms of value and quantity, respectively. The same strong growth pattern in export, recorded in the comparison period of March 2020, when export stood at US$ 16.14m on the shipments of 436,725t of commodities. It depicts growth of 66.3 per cent in value and 77.9 per cent in quantity.

Production in 8MFY21
The Large Scale Manufacturing Industries Index (LSMI) continues to see a growth trend in July 2020-February 2021. The latest data released by PBS suggests that LSMI output during 8MFY21 witnessed an increase of 7.5 per cent YoY and an increase of 4.9 per cent YoY during February 2021. 

During this period, Pakistan’s cement production increased by 21.3 per cent, YoY to 32.909Mt compared to 27.067Mt a year earlier. The upward trend was also observed in February 2021, when production rose by 11.7 per cent to 4.053Mt versus 3.629Mt in the same month last year.