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Exports are driving cement sales in Pakistan

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World Cement,

According to Pakistan’s Business Recorder, exports were the driving force behind cement sales in the country in 1H14. Exports in the northern region remained relatively flat, while those in southern region are set to experience sudden growth following years of decline.

Cement in the northern region

Exports from the north remained fairly stable in 1H14 due to lower demand. Cement dispatches from the region stood at 16.1 million t in 1H14, a 0.54% y/y decrease as a result of lower exports to Afghanistan and India. However, domestic sales in the northern region increased by around 4% y/y in 1H14 due to a 2.2% y/y increase in domestic demand. Around 70% of the country’s cement is produced in the north.

Cement in the southern region

The southern region is experiencing long awaited growth in its exports. After years of decline following on from the financial crisis in 2009, exports by sea are set to increase in FY14 as a result of high demand for cement from countries such as Sri Lanka and South Africa and construction projects in the Middle East. The top three players in the cement industry are looking into major expansion projects in the south due to growing demand.

Edited from various sources by Rosalie Starling

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