Cement export continue to decrease, local dispatch increased by 3.3pc

KARACHI: Although cement sales in domestic market posted fifth straight month of increase as compared to last year, the industry still faces difficult times as export registered third consecutive month of decline and capacity utilization at its lowest since year 2002-03.

All Pakistan Cement Manufacturers Association spokesman on Monday spoke of performance in first ten months of current fiscal year and said total cement dispatches till April 2012, 26.643 million tons which is 3.31 percent higher than corresponding period of last fiscal. Domestic sales during this period rose by 8.51 percent but exports registered 8.91 percent decline.

The performance of North and South based mills depicted different trends in domestic sales and exports. Local sales of North based mills rose by 7.77 percent to 15.928 million tons and South based registered higher domestic consumption by 11.81 percent to 3.701 million tons.

In exports, mills in North suffered comparatively less decline than in South and exported 5.087 million tons posting decline of 6.23 percent over exports in same period last year. Those of South based mills declined by 15.29 percent to 1.928 million tons.

Afghanistan market remained relatively stable as exports declined nominally by 0.15 percent to 3.778 million tons, for India rose by 15.19 percent to slightly over half million tons by sea and Wahga border. Exports to other destinations by sea decreased by 16.96 percent to 2.699 million ton.
Cement is abundantly available and can be exported to India by land route. Despite tall claims to increase bilateral trade, respective governments failed to remove non-tariff barriers imposed on Pakistani products.

Spokesman said main problems faced by exporters at Wahga border are: On Indian side there is currently labour strike resulting in piling up of consignments affecting trucks movement from Pakistan. Only 10 wheeler trucks from Pakistan are allowed to cross border and maximum weight may not be more than 40 tons per truck. Most available transportation for cement has loading capacity of over 40 tons.

Availability of 10 wheeler trucks with loading capacity up to 40 tons is limited; resulting in industry unable to export its surplus capacity.

There is only one scanner installed at new gate at Wahga border resulting in long queues creating delay for Pakistani exports to India.

Pakistan exporters demanded government to allow trucks with loading capacity up to 80 tons instead of 40. Pakistan exporters be provided all facilities at border points so that they could easily clear consignments.