Overall cement dispatches in November-2014 shot up by 11 per cent YoY to 3.0 million tons in the wake of rising domestic demand. According to All Pakistan Cement Manufacturers Association (APCMA), growth in local dispatches was due to higher demand from the Northern region (+13 per cent YoY), whereas demand in South edged up by just 2pc YoY.
Growth in overall cement dispatches in 5MFY15 clocked in at better-than expected 6.4pc YoY, on the back of 9pc YoY higher domestic demand. Overall cement dispatches in initial months (July-November) stood at 14 million, including 10.6m tons domestic and 3.5m tons exports. Analysts at JS said that private sector has contributed most towards the improvement in local demand. On a MoM basis, overall domestic demand increased by 13pc.
Exports in November-2014 improved by 10pc YoY, driven by 14pc YoY higher exports from plants situated in the North. This comes as a surprise as demand for Pakistan cement in Afghanistan (major market for plants in North) had shrunk considerably in recent months due to planned withdrawal of Nato forces and influx of cheap Iranian cement, they added. Meanwhile, exports were down by 2pc YoY to 3.5 million tons during the 5MFY15 period.