KARACHI, March 6: Cement exports during February reached 3,20,000 tons, which was the highest-ever export for any single month.

Figures released by the All-Pakistan Cement Manufacturers’ Association (APCMA) on Tuesday showed 108 per cent growth in cement exports compared with 1,50,000 tons exported in the comparable month last year.

Over the eight-month period of the current fiscal (July-February), sale of cement in foreign markets registered an increase of 81 per cent to 1.77 million tons, from 0.98 million tons in the corresponding eight months of fiscal ’06.

A cement producer, who asked not to be named, said Pakistani exporters had come to dictate prices and terms.

“I do not entertain any query below the FoB price of US$57 per ton,” he said and added that two months ago the sale price was low at around $47 — 48” per ton.

Market watchers pointed out that the export of concrete was getting to be noticeably high.

Last month, exports had shot up by 132 per cent over December ’06.

Overall despatches for February stood at 1.96 million tons, up 24 per cent from 1.58 million tons despatched in February of last year.

Total sale for eight months of the current fiscal was recorded at 15.23 million tons, which registered a 32.2 per cent growth over 11.53 million tons sold in the corresponding eight months of FY’06. Local sales stood at 1.64 million tons for February and 13.47 million tons for eight months of current year, compared with 1.43 million tons and 10.55m tons in the same time last year, registering an increase of 15 and 27.6 per cent, respectively.

Industry sources said that besides the captive market of Afghanistan, cement was being exported to growing number of new destinations, including Abu Dhabi (where mega projects were under construction to compete with Dubai), Yemen, Morocco, Muscat, Iraq, Dubai and finally to India.India’s total cement production capacity stands at 165m tons. The estimated demand-supply gap is around 10 to 12m tons and the country was expected to face a shortfall of 15 per cent this year.

In his report on Monday, analyst Mohammad Rehan Khan at First Capital Equities stated that the eliminated import duty had reduced imported cement prices by approximately Indian Rs15-20 per bag to the level of Indian Rs190 per bag as against the local Indian cement prices which hovered around Rs230-240 per bag.Pakistan was thought to be the most feasible cement importing option for India owing to better quality of Pakistani cement compared to its biggest rival China and lower transportation costs.

Javed Ali Khan, managing director at Pioneer Cement Company stated that just a day ago he had received orders from Turkey, for 300,000 tons of clinker.

“Since the order was big enough, we have passed it on to Lucky Cement”, he said.

Analysts said the caveat as regards the cement sector was the excess capacity.

Although local demand was expected to surge in summer, the capacity expansion by several cement companies could cause glut in the market.