Cement exports likely to reach 6 million tons [Archive]

BaDaR

26th March 2008, 15:56

KARACHI: Cement exports are expected to reach 6 million tons by the end of the current fiscal year recording 88 percent jump as compared previous year.

D.G. Khan Cement Chief Financial Officer, Enayetullah told Geo News that 3.2 million tons of cement was exported in the last fiscal year, while 4.3 million tons of cement have already been exported in the first 8 months of the current fiscal year, which as compared to the previous year same period soared by139 percent.

Presently, cement was exported to India through Wagah at $70 per ton, while from Karachi to Dubai and other countries at $80-85 per ton. He further said that D.G. Khan cement was presently working at 140 percent production capacity and 17,000-18,000 tons of cement was being sold daily.

He said that presently ex-factory cement price in Punjab ranges at Rs220-225 and the retail price at 250-255 per bag.

Cement industry sources told Geo News that the cement manufacturing companies intend to further raise the cement price by Rs5-10 per bag.
Cement exports likely to reach 6 million tons (http://www.geo.tv/home/15839.htm)

BaDaR

29th March 2008, 13:19

KARACHI: Cement sales during the month of March 2008 have breached the previous monthly record high of 2.56 million tonnes (Nov 2007) to reach 2.61 million tonnes by March 25, 2008.

This has been achived on the back of record breaking exports of 726,000 tonnes (previous record 645,000 tonnes in Feb 2008) and 1.9 million tonnes local sales (also close to its record for a single month).

The total expected sales at the end of March 2008 would reach 3.2 million tonnes with local sales reaching 2.3 million tonnes and exports 903,000 tonnes, JS Research projected. After analyzing first 25 days sales figures of March 2008, it is expected that the total cement dispatches in March 2008 would reach 3.2 million tonnes. This would translate into a significant growth of 42 per cent on year on year basis and 30 per cent 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 phenominal growth of 143 per cent YoY and 40 per cent MoM. However, the local sales which made a record of 2.0 million tonnes in November 2007 are likely to reach 2.3 million tonnes in March 2008, the report said.

High cement dispatches during this period is a normal phenomena 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 rise.

Looking at the cement sales figures of March 2008, it is exected that the 9 months (Jul-Mar) of FY08 total dispatches to reach 21.8 million (already reached 21.2 million tonnes till March 25 2008), up by 25 per cent YoY.

This growth will be on the back of 140 per cent rise in exports from 2.1 million tonnes to 5.2 million tonnes, and 9 per cent rise in local sales from 15.4 million tonnes to 16.7 million tonnes during the period under review.

The company-wise sales breakup reveals that Pakistan Cement and Maple Leaf Cement would be the two companies to post cement dispatches growth of over 100 per cent in 9 months (Jul-Mar) FY08 with sales at 1.8 millon tonnes and 1.9 millon tonnes, respectively. The second highest growth of 76 per cent in dispatches will be of DG Khan, followed 49 per cent and 23 per cent by Pioneer Cement and Lucky Cement, respectively.

The President of Karachi Cement Dealers Action Committee, (KCDAC) Wali Bhai Patel said that the rise in cement prices is not just because the production cost is not what they riased, and this is just in line to make profits when government control is weak to control cement companies activities.

“We demand new government to take serious action of the investigation of Monopoly Control Authorty (MCA) now Competition Commission of Pakistan (CCP) against cement companies in previous government which after its completion did not make public and this is the need of hour to book those who are responsible of cement cartels in the country,” he added. Badruddin Fakhri, Managing Director of Galadari Cement says: “Due to high demand of cement its prices are rising in many countries and so in Pakistan. Other than that there has been a huge increase in international coal prices which is one of the base of rising cement prices in Pakistan too, which is just in any sense.” —FZ
Cement sales in March hit record 2.6m tonnes (http://thenews.jang.com.pk/daily_detail.asp?id=103564)