Cement despatches to slip 5% YoY, but exports to mount 59%: Sherman Securities

November 27, 2018 (MLN): As markets anticipate the release of cement dispatch numbers for the month of November, Equity Analyst Saqib Hussain Khan at Sherman Securities has presented provisional cement numbers for the month, in his recent research article.

He expects total cement despatches to clock in at 3.7 million tons, which is 5% lower than November 2017’s despatches. As he carries out a breakdown of the total figure, local despatches are likely to drop by 11% YoY, to 3.2 million tons, due to a slowdown in construction activities amid new taxation measures, anticipated slowdown in GDP and lower PSDP.

On the other hand, cement exports are expected to grow by 59% YoY, to 0.55 million tones. Speaking to Mettis Link News, he explained that this is due to capacity expansion since December 2017, in the southern region where a couple of cement companies including LUCK, ACPL and DGKC have established new plants.

The article further mentions that region-wise, despatches from north are expected to drop, while southern despatches will post an exceptional growth of 45% YoY.

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