Cement Dispatches higher in Nov – Alfalah Securities Limited

Karachi, December 06, 2012 (PPI-OT): Cement dispatches have witnessed a surge of 17.5% in November to 2.649 million tons as against 2.255 million tons during November last year.

According to Alfalah Securities Limited, however, cement dispatches declined by 4.2% on month on month basis. The local cement sales witnessed a growth of 19.63% YoY to 1.96 million tons while export sales registered a growth of 11.71%YoY to 689168 million tons.

Cumulatively, the cement sales stood at 13.12 million tons during 5MFY13 higher by 3.4%YoY as against 12.69 million tons last year where export sales dropped by 4.38% to 3.64 million tons. Sluggish exports to Afghanistan at 2.06 million tons lower by 4% along with declining exports to India which dropped by 38.5% to 0.18 million tons resulted in the decline in the overall cement exports from Pakistan in 5MFY13.The higher cement sales is also cushioned by higher cement prices which increased by 12% YoY at PKR 445 per 50kg bag which would result in better profitability for the overall cement sector, hence, positive for cement companies.