September’s cement sales in Pakistan picked up after a sluggish July/August. Despite contention in the domestic industry over energy tariffs and cement prices, cement sales increased by 36% month-on-month and by 19% y/y. This makes it a record September.
Exports via sea have grown by some 40% since the beginning of this fiscal, though reports indicate that exports to both India and Afghanistan have declined.
Prices have risen by Rs.15 – 20 per 50 kg bag and further price hikes are expected, but government investment in road and energy infrastructure is likely to continue to drive demand.
Andhra Pradesh cement demand falls
Meanwhile, in India, demand for cement in Andhra Pradesh has reportedly dropped by more than 50%. The slowdown in demand has been blamed on the discussions and protests surrounding the bifurcation of the State in the Seemandhra region. Other factors affecting demand include the stalling of government-funded housing projects, which have more or less drawn to a halt, while coal supplies have also been an issue as coal is diverted to power production as a priority. Recent strikes by electricity employees will also affect production for those companies without captive power plants. Cement prices have risen to Rs.285 – 300 per 50 kg bag, though, and demand is expected to pick up in the post-monsoon festival season.
Edited from various sources by Katherine Guenioui
Read the article online at: https://www.worldcement.com/asia-pacific-rim/08102013/cement_sales_record_in_pakistan_september_268/