Just as the large scale production numbers that showed an increased focus on consumer goods than on goods needed as raw materials for further production, the latest import data released by the Federal Bureau of Statistics somewhat reveal a similar picture.
FBSs provisional data show that import of machineries was down 23 percent year-on-year in July 2011; it also fell around 10 percent when compared to average machinery imports in the last six months.
Within the machinery sector, import of textile and power generation machinery decreased by 42 and 55 percent year-on-year, respectively, whereas that of telecom sector was up 27 percent. Interestingly, half of telecom import was led by mobile phone import that rose 26 percent year-on-year to $49.2 million in July alone.
Food import on the other hand jumped sharply by about 33 percent year-on-year - chiefly led by a whopping increase in palm oil purchases. According to FBS data, palm oil imports more than doubled in July year-on-year, as the quantity imported increased by 49 percent whereas average import price also shot up by 45 percent.
However, PVMA officials say that this increase largely represents the pre-Ramazan buying trend, since in edible oil consumption rises by about 40-50 percent in the holy month. Palm oil imports are seen easing 20-25 percent month-on-month in August.
In the meanwhile, imports of crude petroleum slid nearly 60 percent year-on-year in terms of quantity imported as refineries remained caught in the circular debt problem. Additional petrol demand stemming from gas shortages, led to increased imports of petroleum products that was up 15 percent in July year-on-year.
On the export front, rice sales fell by 17 percent year-on-year and two percent against the average of 2HFY11. This was despite an average 26 percent year-on-year increase in sale prices, as export quantity fell by a sharp 34 percent year-on-year. Volumetric rice sales are likely to remain subdued for another two months till the new stocks arrive by the end of first quarter.
As for the countrys top dollar earning sector, textile, the situation appears mixed at the moment. Cotton prices have been falling like nine pins, a trend that is being reflected by the average price of lower value added products.
The higher end of the value chain has so far withstood the negative price shock, but its sales, in terms of units sold, are showing signs of weakness. Should one expect another round of whimpering by the textile boys?
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KEY TEXTILE EXPORTS IN JULY
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Quantity Sold Average price per
quantity sold
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YoY Against YoY Against
2HFY11 2HFY11
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Cotton Yarn -19.7% -18.7% 37.4% -15.3%
Cotton Cloth 10.2% -6.9% 5.4% -5.3%
Knitwear 8.0% -0.8% 9.7% 5.3%
Bed wear -27.9% -17.6% 43.2% 12.6%
Readymade garments 20.3% 0.4% -4.2% -0.3%
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Source: FBS
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