Pakistan’s cement and clinker exports increase

Pakistan’s cement industry has registered substantial growth in dispatches of cement and clinker exports in terms of value and quantity during the first five months of FY23-24 (July-November 2023) due to the continued depreciation of the Pakistani rupee against foreign currency and the falling coal prices.  

Pakistan’s cement and clinker exports increased by around 48.3 per cent in the 5MFY23-24 to US$114 (2.93Mt), compared to US$76.87m (1.54Mt) in the 5MFY22-23, the Pakistan Bureau of Statistics (PBS) said. In terms of volumes, exports increased by 89.4 per cent YoY in the same period. The export revenue, in Pakistani rupee terms, saw a significant growth of 90.4 per cent to PKR32.86bn (US$116.9m) during this export period, sustained by the depreciation of the local currency against the US dollar. 

The data on exports and imports released by PBS revealed that MoM, cement and clinker exports registered a 20.8 per cent decline in terms of value in November 2023 to US$20.91m (525,281t) from US$26.4m (731,380t) in October 2023. But the dispatch volumes, the MoM, saw an increase of 28.2 per cent. The YoY cement export data depicts a healthy picture increasing by 97.1 per cent in value and 135.1 per cent in volume, if compared to data from November 2022 (US$10.60 at 223,387t).

Outlook
According to Spectrum Securities, demand in cement sales is expected to increase by five per cent in FY23-24, which aligns with industry players’ expectations supported by anticipation of a decline in interest rates and lower coal prices. However, inflated construction costs, political uncertainty, and volatility in energy prices can pose risks to the industry.