Exports that provided cushion to the cement manufacturers against unutilised capacities continued their downward trend in March-2012. Exports of cement declined by 23.72 per cent in March 2012 compared to last year defeating the commendable increase of 14.8 per cent in domestic sales that crossed 2.5 million tons.
All Pakistan Cement Manufacturers Association (APCMA) spokesman has expressed delight that the domestic sales have picked up by a healthy margin in March with local sales crossing the 2.55 million tons mark – making it the first month ever when the sales crossed the 2.5 million tons physiological barrier. He said that total domestic sales in the first nine months of the current year have reached 17.386 million tons against 16.040 million tons during the same period last year, showing an overall growth of 8.40 per cent.
“This is better but domestic industry needs much more sales to utilise its idle production capacity.” He further added that the disappointing performance in exports had reduced the gains made by the domestic sales growth. He said the exports in March-2012 were only 625,358 tons compared to 819,805 tons in March-2011. “In the first nine months of this fiscal the cement exports have declined by 7.76 per cent to 6.243 million tons compared to 6.769 million tons during the corresponding period last year.” He expressed concerns about the decline in sea exports witnessed by the cement plants located in the south. He said the exports from sea declined during the first nine months of this fiscal by 22 per cent to 2.425 million tons against exports of 3.107 million tons during corresponding period last year.
He said that exports to Afghanistan registered a growth of two per cent in the first nine months of this fiscal from 3.403 million tons in July-March 2011 to 3.336 million tons in the first nine months of this fiscal. The less growth in exports is mainly due to prolong winter season and it is hoped that by the end of current fiscal the industry shall cross five million tons quantity. He said exports to India though still much below potential registered a healthy increase of over 26 per cent in the first nine months of this fiscal from 382,763 tons in July-March 2011 to 483,337 tons in the first nine months of this fiscal. He hoped that India would remove the non-tariff barriers to pave way for much accelerated exports in next three months of this fiscal.
Exports extend their downward journey
