1

KARACHI:
With over 6% growth in sales in the first seven months of the current fiscal year, analysts say
the cement industry is set to post highest-ever growth rate in the last five years.
This growth is more important for the cement industry officials as it is mainly based on local
sales unlike the pre-2010 period when the industry used to equally rely on exports.
Cement industrys domestic sales have surprised everyone and the growth has surpassed
all market estimates. Industry is likely to grow over 6% as it has risen in the first seven
months (Jul-Jan 2014-15), industry analyst Saad Hashmi commented.
Average growth in cement production was just 2.9% in the last three years. However,
cement sales have shown an exceptional 6.2% growth in the first seven months in fiscal year
2015. Even if the industry succeeds in maintaining the current growth at the end of the fiscal
year, it will be the highest expansion rate in the last five years.
Cement production posted the highest-ever number of 34.28 million tons in the last fiscal
year 2013-14. Dispatches increased to 20.02 million tons during the first seven months of
2014-15 compared to 18.86 million tons in the same period of previous fiscal year. This
means the industry can touch 36.6 million tons by the end of June 2015 if it grows at the
current pace of 6.2%.
In all likelihood, Hashmi said the cement industry will succeed in maintaining 6% growth
because the remaining five months (February to June) are all those in which the construction
activity remains high.
Owing to the continuous decline in cement exports over the last five years, the industry is
increasingly dependent on local sales. The impact of the rise in domestic consumption is so
strong that while issuing the latest data, the spokesperson for the All Pakistan Cement
Manufacturers Association recently claimed, higher cement uptake depicts a turnaround in
the economy.
Commenting on the immense satisfaction of the industry from rising domestic demand, he
said cement companies have been reaping the benefits of record low international coal
prices that have significantly reduced the cost of production.
Construction sector
Association of Builders and Developers Pakistan (ABAD) former senior vice chairman
Saleem Kassim Patel told The Express Tribune that the private sector is showing a strong
growth, which is one of the main causes of high cement consumption in the country.
There is a huge backlog of houses, which is why this sector will continue to attract
investments. What is more important is that the current rise in construction activities can turn
around the economy if the government starts supporting it, said Patel.
However, one of the biggest hurdles to the fast growth of the construction sector is the
moratorium on new gas connections for high-rise buildings. Without gas, thousands of
already constructed residential buildings are still unoccupied, causing financial losses of
millions of rupees to the builders and their clients, he added.
Owing to the growing shortage of gas, the PPP-led previous government banned all new gas
connections to CNG stations, high-rise buildings and industries in 2011. Since then, builders
and developers say the ban has been proving damaging for new investments in this sector.
Published in The Express Tribune, February 6th, 2015.
Construction sector: Cement industry weak due to lack of innovation:Shahram Haq
The cement industry of Pakistan is one of the main stream sectors that generates foreign
exchange for the country due to its certified quality.
The main reason why Pakistani cement is preferred by other countries is due to the
abundance of its basic raw material, limestone. However, the country is still far behind in
introducing different varieties of cement to be used in different categories. The most
commonly used cement is the Ordinary Portland Cement (OPC) in order to meet all
construction requirements.
The construction sector is expanding and there is dire need to introduce new cement
qualities in Pakistan for better efficiency and cost reduction, said Nabeel Asghar, head of

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project and operations, Technology Up gradation and Skill Development Company
(TUSDEC), while talking to The Express Tribune.
Tusdec is operating a subsidiary Cement Research and Development Institute through
which it is testing the quality of cement and allied materials. The institute was established in
1983 by the State Cement Corporation, at that time primarily for the Kalabagh Dam.
Inauspiciously, the institute started lurking into dormancy and was looming in abjection in
2005, when Tusdec was entrusted with its operations on January 2006.
The institute after its re-launch was primarily testing different samples from cement
manufacturers, contractors and consultants for quality certifications, however, the institute
started testing samples to introduce Blended cement, and Fly-Ash cement.
Though blended cement is being manufactured in Pakistan by a single manufacturer, but at
large, the contractors of mega projects mix other materials in OPC for mega structures, like
dams, bridges, highways etc.
For instance if we talk about the overall housing industry, contractors widely use OPC for
constructing walls, and for renovating them, Asghar said, adding that very few know that in
the modern world Masonry cement is used for wall furnishings since low level cement is
required.
Counterfeiting the impact of its strengths, the cement industry of the country is lagging
behind when it comes to innovation due to the sink in latest technological advancements, he
said.
The industry is also suffering from a lack of skillful human resource at each tier. The
induction of manpower is required to enhance the output quality while minimising the cost
and augmenting the distribution channels.
Published in The Express Tribune, October 24th, 2014.
Cement Sector: Total Dispatches for April-15; up by 7%MoM and 1%YoY By IGI
Research Cement Sector:
April-15 total dispatches up by 7%MoM: As per latest data, total dispatches in March15
clocked in at 3.2mnT as against 3.0mnT as against same period last year reflecting an
impressive growth of 7%MoM. Aforementioned expansion is mainly attributable to surge in
exports by 41%MoM to 627 mnT (North +43%, South +39%). However, during the month
local dispatches depicted a meager growth of 1%MoM owing to 7%MoM drop in sales from
southern region.
Private sector continues to support local dispatches: In 10MFY15, local dispatches
stood at 22.9mnT; up by 8%YoY. In this impressive growth, north players contributed the
most as the region swelled by 8%YoY to 19mnT as compared to 17.6mnT in the
corresponding period last year while, South region also depicted an increase of 6%YoY to
3.8mnT. This improvement in dispatches is mainly on the back of (i) robust demand from
private sector due to massive influx of housing schemes and (ii) higher utilization of PSDP.
On the other hand, total exports slumped by 9%YoY to 6.06mnT as compared to 6.69mnT
same period last year. This decline in exports primarily owes to drop in sale of cement from
Afghanistan region due to withdrawal of NATO forces causing low infrastructure activity.
CHCC, MLCF and DGKC holds top sales figure: Company wise breakup suggests that
CHCC posted a growth of 13.8% (local 7.4%YoY) followed by MLCF 8.8%YoY (local 4.2%)
and DGKC 2.62%YoY (local 6.9%YoY). However, on monthly basis FECTC, CHCC and
DGKC witnessed a growth of 25.71%MoM (local 7.8%MoM), 24.4% MoM (local11.2%MoM)
and 16%MoM (+11.3%MoM) respectively.

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APCMA urges govt to address problems of cement industry : DailyTimes:5-Dec-14
KARACHI: All Pakistan Cement Manufacturers Association (APCMA) on Thursday urged the
federal government t to address the issues impeding the actual growth potential of the
cement
industry.
An APCMA spokesperson said that with a growth of 9.39 percent in sales in 2013, the
cement sector continued to struggle against ever increasing input costs, including electricity
and shortage of gas, adding that the APCMA was the only industry which offered the Federal
Board of Revenue and Ministry of Industries to place supervised clearance system of
cement
dispatches.
The spokesperson said that in this challenging environment the cement sector continued to
perform well, as during the first five months of current fiscal year a growth of 9.39 percent in
domestic sales was recorded, compared with the same period of 2013. Exports during July
to November recorded a decline of two percent compared with same period of 2013. The
overall situation during first five months of the current fiscal year showed a healthy growth of
6.35
percent
compared
with
the
same
period
of2013.
Analyzing zone-wise dispatches, the north based cement mills dispatched 8.872 million
tonnes to the domestic markets during July to November which was 11.03 percent higher
than the dispatches during same period of 2013. Exports from north, however, declined to
2.183
million
tonnes.
In southern region, the cement mills experienced slow growth in domestic markets as
against dispatches of 1.664 million tonnes during July to November 2013, the domestic
dispatches inched up by only 1.52 percent to 1.689 million tons. However, there was a
turnover in exports that increased by 10.45 percent to 1.266 million tonnes from 1.146 million
tons
during
the
corresponding
period
on
2013.
Cement dispatches to domestic markets during the month of November were 2.370 million
tonnes compared with 2.125 million tons in November 2013, showing an increase of 11.51
percent. Exports during November were 0.659 million tonnes against 0.601 million tonnes
during November 2013, showing an increase of 9.76 percent. Total dispatches during
November were 3.029 million tonnes compared to 2.726 million tons in November 2013,
showing
an
increase
of
11.13
percent.
The spokesperson said that the cement sector was one of the few documented sectors of
Pakistan. "The cement companies are listed in stock exchanges and have annual internal
and external audits from well reputed audit firms. Thus drawing illogical and ridiculous
conclusions and releasing them as a conviction report not only put the industry's integrity in
question but that of the whole corporate sector which by the way is the biggest contributor to
such institutions," he added.
Pakistan losing cement market of Afghanistan: The Nation 27-Apr-2015
The country is losing cement market of Afghanistan to its neighbouring countries of Iran and
India, registering a significant fall of 25 percent in the commoditys exports.
The data showed that cement exports registered a massive decline of 39 percent to 443,000
tons in March 2015 as against 726,000 tons in March 2014. Iranian cement makers along
with
their
Indian
counterparts
have
made
inroads
into
Afghanistan.
Pakistan exported 2.06 million tons cement to Afghanistan in July-March FY15, as compared
to
2.75
million
tons
in
July-March
FY14.
Average monthly cement sale was registered at 2.26 million tons in the first nine months of

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the current fiscal year as against 2.084 million tons/month in the corresponding period last
fiscal year. However, monthly average export was down to 605,000 tons from 669,000 tons
earlier.
APCMA spokesman said illegal cement import from Iran and tax evasion at import stage are
affecting
the
cement
industry.
The cement quantity is found understated on the customs Goods Declaration Form,
resulting in a substantial loss to the national exchequer, he said. Full taxes are not being
paid
on
the
import
of
Iranian
cement.
A road trailer entering Pakistan from Taftan border carries up to 60 tons of cement. A
transporter issues two different weight loads receipts: one for the customs department and
the
other
one,
which
is
the
actual
one,
for
freight
purposes.
The association official believed that if taxes are fully paid, the price of Iranian cement is
equal to local ones. Cement makers demanded of the government to take steps to stop
illegal inflows of Iranian cement in Pakistan. They sought inclusion of cement in the negative
import list.
Illegal imports of Iranian cement spoiling domestic industry:May 5, 2015 Pakistan
Headlines With 8.94 million tons unutilised capacity, cement manufacturers are perturbed
over unchecked ingress of Iranian cement which is consistently eating up the local industrys
share while the governments revenue collection efforts are also being affected.
Spokesman for the All Pakistan Cement Manufacturers Association (APCMA) appealed the
government functionaries to intervene and take effective steps to stop illegal import of
Iranian cement and protect local cement industry by including cement in negative list of
import items so that the countrys surplus production capacity could be utilised to the
maximum extent. This will help to increase the economic growth in the country and will also
curb malpractices at different levels, he added.
Referring to the dispatches data the of cement industry, he said domestic uptake of cement
continued to depict positive trends increasing by 7.97 percent during the first 10 months of
this fiscal year while the exports declined by 9.09 percent during the same period to reduce
the yearly output gains to 3.89 percent.
The cement industry dispatched 29.07 million tons of cement during July 14 to April 15
against total dispatches of 27.98 million tons during the same period in last fiscal year. It
was the domestic demand that kept the mills operating, said the spokesman.
Cement despatches to domestic markets during the month of April 15 increased by 4.57
percent to 2.65 million tons compared with 2.54 million tons during same month last year.
Exports during April 15 were 640,000 tons against 672,000 tons during April, 14 showing
decline of 4.72 percent. Total despatches during April, 15 were 3.29 million tons compared to
3.21 million tons during same month last year showing increase of 2.62 percent.
We are still operating at a little over 76 percent capacity which translates into idle capacity
of 8.94 million tons, the spokesman said, adding some facilitation from the government
could very well boost local demand and the exports. The illegal import of commodity from
Iran and tax evasions at import stage by mis-declarations has become a major concern for
the stakeholders.

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He said: Unfortunately the quantity of cement has been found understated on the customs
Goods Declaration Form, resulting in substantial loss to the national exchequer. This is all
done through collusion of the dealers with the customs department officials and the
transporters.
At present the countrys surplus cement dispatches capacity is more than 8.94 million tons
per annum and it is coming under further pressure due to illegal import of Iranian cement,
said the spokesperson, adding that it was not only damaging the local industry but also
through mis-declaration giving substantial loss to the national exchequer.

What is the global market size for cement? - What is the cement market size in
nearly 80 different countries? - Are the markets growing or decreasing? - How
are the markets divided into different kinds of products? - How are different
product groups developing? - How are the markets forecast to develop in the
future?
Global cement demand to pass US$ 21 billion by 2017
Key Highlights
The Asia-Pacific prefabricated buildings market recorded a review-period
CAGR of 15.94%, outperforming all other regional markets. China contributed
the most in the region, holding the largest share of 45.0%, followed by India,
Japan, and Indonesia, which constituted respective shares of 5.0%, 3.2% and
2.4%.
The European concrete and cement market covers the markets of 26
European countries. Russia held the largest share of the market, with 3.7%,
followed by France, Germany, Italy and Turkey, with shares of 2.5%, 2.2%,
1.9% and 1.8% respectively. The remaining countries captured shares ranging
from 0.02% to 1.2%, demonstrating the diverse market dynamics within the
European region.
The US was the key market in the North American concrete and cement
market, as it accounted for an 84.4% share of the market in the same year.
The construction industrys demand for concrete and cement, however,
declined as a result of the recession, causing the total North American
concrete and cement market to record a CAGR of 3.54% during the review
period. The market is expected to post a CAGR of 4.06% over the forecast
period.
In Latin American concrete and cement market, Brazil accounted for the
largest share (58.9%), followed by Mexico, Argentina and Colombia with
respective shares of 21.4%, 10.7% and 9.0%. The Latin American market
registered a CAGR of 6.04% during the review period, and is expected to
record a CAGR of 4.30% over the forecast period. Brazil is anticipated to be a
key source of the demand for concrete and cement in Latin America over the
forecast period.
The Middle East is the smallest regional market for concrete and cement. The
UAE was the largest market in this region, accounting for a 48.5% share,
followed by Saudi Arabia, Qatar and Bahrain, with shares of 46.4%, 4.5% and
0.6% respectively. The Middle East recorded a CAGR of 1.86% during the
review period, and is expected to register a CAGR of 4.85% during the
forecast period.
Average growth of +9.3% a year has been forecast for global consumption of cement
and concrete additives, with demand set to hit US$ 21.2 billion in 2017, according to
research company Freedonia.
The Asia Pacific region is expected to remain the largest consumer of cement and
concrete additives in Freedonias data set, with demand expected to increase +9.2%
a year reaching US$ 10.6 billion by 2017.
But the strongest growth between 2012 and 2017 is forecast for Africa and the
Middle East, where increases of +10.6% a year are expected, reaching a value of
US$ 1.37 billion by 2017.

In Central and South America, annual demand is expected to increase +10.3%,

reaching US$ 633 million by 2017, while demand in North America is forecast to
jump +10% a year, reaching US$ 4.12 billion by 2017.
Consumption in Eastern Europe is forecast to see +9.2% growth between 2012 and
2017, reaching a value of US$ 1.38 billion, and Western Europe is expected to see
+7.8% annual growth reaching US$ 3.15 billion.
Freedonia said growth in cement use in the US, Italy, Spain, and several other
developed markets would rebound as construction markets recovered from recent
disastrous periods, fuelling above-average gains for additives.
In contrast, it said the construction markets of many developing countries were not
affected (or much less so) by the recent economic downturn.
In these areas, it said gains were expected to be prompted by increased additive
use, and a move to higher-value additives to produce concrete meeting increasingly
stringent performance expectations.
Freedonia said China accounted for nearly three-fifths of the worlds cement demand
and more than one-quarter of additive demand in 2012. It said sustained growth in
demand for additives was expected, even as growth in construction activity and
cement demand decelerates.
In 2002 the world production of hydraulic cement was 1,800 million metric tons. The
top three producers were China with 704, India with 100, and the United States with
91 million metric tons for a combined total of about half the world total by the world's
three most populated states.[22]