March 05, 2020 (PPI-OT)

Cement dispatches grow 34% YoY in Feb-2020; MLCF rises yet again in the domestic race

Cement dispatches for the month of Feb-2020 increased by 34% YoY to 4.49mn tons as compared to 3.35mn tons in the same month last year.

Moreover, looking at the data for regional cement dispatches, the 31% YoY growth in local dispatches was solely on the back of 46% YoY increase in the north, whereas local dispatches in the south receded by 16% YoY.

Looking at dispatches for companies, Maple Leaf Cement (MLCF) recorded the highest growth in dispatches at 110% YoY during February, followed by Cherat Cement (CHCC) with 63% YoY.

Dispatches grow 34% YoY in Feb-2020

Cement dispatches, as per available data, recorded growth of 34% YoY to 4.49mn tons in Feb-2020, compared to 3.35mn tons in the same month last year. The increase in overall cement dispatches during the month was led by 46% YoY (+997k tons YoY) jump in North-based local dispatches and 60% YoY (207k tons YoY) hike in South-based exports. Overall, local dispatches posted 31% YoY growth, whereas exports increased by 48% YoY. Although domestic dispatches of South-based players declined, (-16% YoY) compared to growth in the North, this is not a case of falling demand in the south; rather, it is merely due to north- based players having gained market share in the southern region, leading to lower local dispatches from south based players.

Cumulatively in 8MFY20, total dispatches have grown at 10% YoY (+3,1012k tons YoY). Local dispatches have increased by 7% YoY, whereas, exports surged by a more impressive 27% YoY. Regionally, growth in the North has been led by 16% YoY (3,184k tons YoY) rise in local dispatches. On the other hand, in the South, exports were the main growth driver, up by 48% YoY (1,338K tons YoY). In other words, although players from the south have increased their share of exports, they have lost market share in the domestic market to north-based players during 8MFY20.

MLCF continues on its merry path

Looking at dispatches' data across companies, the key winners during this month in terms of YoY growth are Maple Leaf Cement (MLCF, +110% YoY) and Cherat Cement (CHCC, +63% YoY), followed by Kohat Cement (KOHC, +49% YoY) and Fauji Cement (FCCL, +48% YoY). Bestway Cement still holds its top position in terms of local dispatches, followed by Lucky Cement (LUCK) and D.G. Khan Cement (DGKC).

© Pakistan Press International, source Asianet-Pakistan