Over 23pc decline in cement exports: Local sales cross 2.55mn tons mark

RECORDER REPORT

LAHORE: 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 percent in March 2012 compared to last year defeating the commendable increase of 14.8 percent in domestic sales that crossed 2.5 million tons.

A spokesman of All Pakistan Cement Manufacturers Association (APCMA) on Wednesday 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 barrier.

He said the total domestic sales in the first nine months of this fiscal year have reached 17.386 million tons against 16.04 million tons during the same period last year showing an overall growth of 8.4 percent.

"This is better but we need much more sales to utilise our idle production capacities," he said and further added that 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 percent to 6.243 million tons compared to 6.769 million tons during the corresponding period last year."

He expressed concern about the decline in sea exports witnessed by the cement plants located in South.

He said the exports from sea declined during the first nine months of this fiscal by 22 percent to 2.425 million tons against exports of 3.107 million tons during corresponding period last year.

He said exports to Afghanistan registered a growth of two percent 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 percent 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.