Lahore May 16 2023: According to the data released by All Pakistan Cement Manufacturers Association, exports despatches increased by 168.61% as the volumes increased from 156,613 tons in April 2022 to 420,677 tons in April 2023.
“Devaluation of PKR against greenback has made export viable, as evident from 3QFY23 exports sales which is up by 82% QoQ. Moreover, declining international coal prices coupled with some ease in import restrictions, will improve the profitability of southern players in coming quarters” writes Ali Asif analyst at Insight securities in its research note.
Exports from North based mills increased by 35.93% as the quantities increased from 61,971 tons in April 2022 to 84,238 tons in April 2023. Exports from South also increased by 255.49% to 336,439 tons in April 2023 from 94,642 tons during the same month last year.
“Coal prices have receded around 76 percent from the highs of 2022, with FOB price of RB1 falling from USD460/Ton in March 2022 to USD112/Ton now. Moreover, freight charges from Richards Bay to Karachi have also decreased to USD16.3/Ton from USD30.4/Ton a year ago. As coal is currently contributing around 60% to the cost of production for cement manufacturers, so any decline in largest cost component should prove highly beneficial for them” writes Muhammad Naumair Jadoon analyst at Alfalah CLSA in its research report.
However, during the first ten months of current fiscal year, export despatches were 27.99% less as the volumes reduced to 3.456 million tons during the first ten months of current fiscal year compared to 4.800 million tons exports done during same period of last fiscal year.
Exports from North increased by 16.35% percent to 862,675 tons during July-April 2023 compared with 741,452 tons exported during the same period last year.
Exports from South declined by 36.09% to 2.593 million tons during July-April 2023 compared with 4.058 million tons exported during the same period last year.