Alhamdulilallah. More excellent news for Pakistan. With unprecedented increase in infrastructure development projects, Pakistan is also able to export the cement.
http://www.dailytimes.com.pk/default.asp?page=2008\03\29\story_29-3-2008_pg5_2
** Cement sales and exports set new records **
**** Exports of 726,000 tonnes, 1.9 million tonnes local sales of cement during March are the highest in Pakistani history**
By Muhammad Yasir *
KARACHI: Cement’s monthly sales and exports have marked a new record in the country’s history, breaking all the previous record levels this month to reach at 2.61 million tonnes and 726,000 tonnes respectively.
The record sale of cement was marked on the back of record-breaking exports of 726,000 tonnes (previous record was 645,000 tonnes in February 2008) and 1.9 million tonnes local sales (also close to its record for a single month), a report prepared by JS Capital Research said. The sales of cement during March 2008 had already broken the previous monthly record of 2.56 million tonnes (November 2007) to reach at 2.61 million tonnes by the March 25, 2008.
However, cement manufacturers estimated that the total sales for March 2008 would reach 3.2 million tonnes including local sales of 2.3 million tonnes and exports of 903,000 tonnes.
Keeping in view the first 25-day sales of March 2008, the total cement dispatches in March 2008 are expected to reach at 3.2 million tonnes. This would translate into a significant growth of 42 percent on year-on year basis and 30 percent on month-on-month basis.
Exports, which have already broken the monthly record of 645,000 tonnes set in Feb 2008, are believed to exceed 900,000 tonnes registering a whopping growth of 143 percent on year-on-year basis and 40 percent on month-on-month basis. While local sales, which made a record of 2 million tonnes in November 2007 are likely to reach at 2.3 million tonnes in March 2008.
An analyst of the cement sector Bilal Hameed told Daily Times here Friday that upbeat cement dispatches during this period is a normal phenomenon since it marks the start of peak demand season. Winter season has ended and upbeat construction activities, both in the local and the exports market, are on the roll, he added.
He said that the primary source of overall cement growth in fiscal year 2007-08, however, will be exports owing to the supply shortage in India and Middle East, which led to rocketing cement prices in the region. Pakistani cement companies, due to their excess capacity, are looking to export to neighboring countries such as Middle East, Africa, Afghanistan and India where they are getting a price premium.
Meanwhile, Pakistani cement exports have surged to United Arab Emirates (UAE) after its government had removed 5 percent customs duty on cement to help the fast moving construction sector in Dubai.
As far as prices of foreign countries are concerned, the increasing regional cement price is benefiting Pakistani cement companies that are able to export their products at a price premium. Initially, cement was being exported to the UAE at FOB (Free on Board) price of US$60-65 per tonne, which has now jumped to US$70-75 per tonne.
The cement’s demand has been rising as the construction season has began in a full swing locally and in the exporting countries in March that is expected to increase manifold in the remaining months of the current fiscal year.
On the other hand, the prices in the local markets are also on the rise during the current peak season due to swelling demand.
According to the dealers, local cement manufacturers have increased ex-factory cement prices by Rs 15-20 per bag during the last week across the country. With this rise, the average ex-factory cement price stands at Rs 265-270 per bag in Karachi and southern parts of the country while it stands at Rs 247-252/bag in north.
However, dealers said that manufacturing companies have been increasing cement prices by Rs 10-5 per bag for last two weeks in the peak sales season of the construction.