South Asian Business news and information

The News reports:

With the advent of the peak local cement demand season in the country and soaring regional prices, demand for Pakistani cement is set to rise further. “Hence, it is likely that in remaining months of FY08, we might see record cement sales on both local as well as export front. Already, in the first eight months (Jul-Feb) of FY08, sales have demonstrated a healthy increase in demand of 23 per cent with dispatches of 18.7 million tons,” said JS Research.

Considering the sales increase of 23 per cent in the eight months of the current fiscal year, the total dispatches are likely to reach 29.6 million tons in FY08. Total dispatches declined in December 2007, but this decline has been due to lesser working days and winter season.

The peak demand season starts in March with the end of winter and advent of suitable weather for construction work. During this season sales can grow by 22 per cent versus 24.2 million tons cement sales in FY07.

According to Walbhai Patel, President of Karachi Cement Dealers Action Committee (KCDAC), due to higher demand of cement in other countries the price of cement in the domestic market is rising.

Where Pakistani cement companies have excess cement production facilities, India is facing shortage in cement. This has become a boon for Pakistan. Currently, Pakistani cement is exported to Middle East, Africa, Afghanistan and India. In addition, some cement companies received orders from Russia with a price tag of Rs 860 per bag. Because of logistic problem, it is difficult to export to Russia.

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The News