EUR 35.00 For Business Accounts Only

Pakistan Cement: Oct sales to rise 15% YoY, another record; Capacity utilization near 100%

• Pakistan cement sales are again likely to make an all time high in Oct-2020 of 5.7mn tons, up 14-16% YoY and 9-11% MoM.
• This is likely to take industry’s capacity utilization (adjusted for closed plants) to 103% in Oct-2020 vs. 94% in Sep-2020.
• Local sales are likely to clock in at 4.8mn tons, up 15% YoY and 18% MoM due to initiation of construction work on dams and injection of more liquidity in construction/housing sector.
• Loans to the construction sector have increased by 7.5% MoM to Rs336bn (addition of Rs23bn) in Sep-2020, according to State Bank of Pakistan (SBP).
• Exports are likely to increase by 19% YoY (but down 17% MoM). This sequential decline is likely as local sales are gaining momentum and industry is achieving its full utilization.
• In 4MFY21, total sales are likely to reach 19.3mn tons, an increase of 20% YoY, wherein exports are likely to grow by 31% YoY and local sales by 18% YoY (North: +19% YoY, South: 11% YoY).
• Lucky Cement’s (LUCK) sales are likely to clock in at 946k tons, an increase of 49% YoY.
• DG Khan Cement’s (DGKC) sales are likely to clock in at 0.82mn tons, up 17% MoM.

Cement prices in the North region during the outgoing month averaged at Rs550/bag, up Rs16/bag from average of Sep-2020. Prices in the South remained same at Rs610-615/bag.