March cement sales expected at 4.5mln tons

KARACHI: Cement sales are expected to increase 14 percent year on year and 20 percent month on month to 4.5 million tons in March, a brokerage report said on Wednesday.

In March, local sales are expected to rise 12 percent year on year (YoY) and 20 percent month on month (MoM) to 4.2 million tons, while exports are likely to post 67 percent YoY and 17 percent MoM growth to 353,000 tons.

“Double digit growth in exports may continue owing to additional export from new capacities in south region and devaluation of rupee against dollar,” Nabeel Khursheed, an analyst at Topline Securities said.

Cement local sales and exports are likely to grow 14 percent to 34.42 million tons in the first nine months of the current fiscal of 2018.

“One of the reasons for this demand is higher consumption from private sector stemming from various housing schemes. Private sector credit clocked in at Rs5.1 trillion by February 2018, up 17 percent YoY,” Khursheed added.

The analyst said March proved to be a fortunate period for north producers as well as cement prices increased a cumulative Rs40/bag with another Rs10/bag increase expected. “This will take north prices to Rs520-530/bag, in line with our expectations. However, prices in south have thus far remained intact, contrary to our expectations.”