Cement sales may post 9pc growth in Nov

KARACHI: Cement sales are likely to post nine percent year-on-year (YoY) jump in November due mainly to strong domestic demand, a brokerage reported on Thursday. Analyst Nabeel Khursheed at Topline Securities said cement industry is expected to record sales of 3.7 million tons in November.

Local sales are expected to be at 3.2 million tons in November, up 12 percent YoY and five percent month-on-month (MoM).  “We remain upbeat on local sales outlook, owing to large scale infrastructure developments and higher demand from private sector,” Khursheed added. Exports are likely to remain at 0.5 million tons, up six percent YoY, but down four percent MoM. “This is mainly because of a likely 20 percent decline in dispatches to Afghanistan,” the equity analyst added. The neighbouring Afghanistan consumes 35 percent of Pakistan’s cement exports.  The brokerage, citing the Pakistan Bureau of Statistics, said retail cement prices were in the range of Rs520 to 540/bag in north and Rs567-580/bag in south region in November. An average nationwide price was Rs545/bag.

Cement sales are likely to increase around nine percent to 16 million tons in the first five months of this fiscal year. Local sales would be up 11 percent to 13.6 million tons in the July-November period.