Displaying items by tag: APCMA

Pakistan: Cement exports from Pakistan fell by 36% year-on-year to 467,000t in September 2015, as the import duty by South Africa took a heavy toll on its exports.

"Around 45 – 50% of total cement exports were destined for South Africa before the duty was imposed," said Sheikh Adeel, Senior Manager of Sales and Marketing at Maple Leaf Cement. South Africa has imposed duty as high as 77% on Pakistan's cements. Adeel said that the drop in exports has adversely affected exporters in Punjab. The transportation cost from Punjab to Karachi Port also rose by US$20/t.

Another industry official said that the industry is not utilising its production capacity. "There is enough idle capacity. The government should step in to support the industry to export surplus volumes, otherwise cement exports will continue to decline in the coming months," said Shahzad Ahmed, a spokesman of the All Pakistan Cement Manufacturers Association (APCMA). "We expect the government to announce export incentives for the cement industry."

In September 2014, cement exports stood at 730,000t, according to APCMA data. Total cement dispatches were recorded at 2.95Mt in September 2015 compared to 3.15Mt in September 2014, showing a cut of 6.34%. The industry data showed that cement dispatches to domestic markets were 2.48Mt in September 2015 compared to 2.42Mt in September 2014, up by 2.6%.

The local industry has been demanding that the government curb cement imports from Iran, which they said is eating into local share. "The industry expects the government to take effective steps to stop the penetration of Iranian cement in Pakistani markets through massive under invoicing and/or mis-declaration," said Ahmed. He added that the mills in the south suffered more than those operating in northern part of the country.

In the south, domestic cement dispatches declined to 399,581t in September 2015 from 431,133t in September 2014. Domestic consumption in the north, however, rose to 2.08Mt in September 2015 from 1.99Mt in September 2014. Ahmed said that domestic dispatches in the north were nominally higher than the 2.02Mt of consumption in September 2015. "This shows that the pace of construction in the north has not been hit as badly as in the south," he said. The export decline was almost the same both in north and south. Cement exports from the north declined to 306,564t in September 2015 from 480,025t in September 2014. Exports from the south dipped to 160,698t in September 2015 from 249,906t in September 2014.

Pakistan: Cement exports fell by 26.1% to 560,000t in May 2015 as cheap Iranian cement is eating Pakistan's market share in Afghanistan, according to the All Pakistan Cement Manufacturers Association (APCMA). Pakistan exported 750,000t of cement in May 2014.

"Iranian cement is fast making inroads into Afghanistan," said an APCMA spokesperson. APCMA data showed that exports dropped by 10.8% to 6.64Mt between July 2014 and May 2015. Cement makers exported 7.44Mt in the same period of the 2013 – 2014 financial year.

The APCMA appealed to the government to support local manufacturers in winning back the Afghan market by withdrawing duties, which would enable them to compete with highly-subsidised Iranian cement. There is a 5% federal excise duty and a 17% general sales tax on the retail price of cement. "The taxes are equal to around US$1.56/bag," said the spokesperson. "The incidence of high taxation encourages evasion and negatively impacts consumption." He added that the government should gradually bring federal excise duty to zero, as announced by the previous government.

Exports from the south increased by 4.5% in the July 2014 to May 2015 period. These exports go via the sea. However, exports from the north decreased by 18.3% due to the Iranian cement factor, as exports from the north usually go to Afghanistan. The spokesperson said that Iran is also dumping its cement in Balochistan, Pakistan and that cement smuggling from Iran to Balochistan is resulting in substantial losses to national exchequer. "Policy makers ignored warnings from the cement industry over the inundation of Iranian cement in Afghanistan," he said. "It has penetrated our local market." He said that full taxes are not paid on Iranian cement imports.

A road trailer entering Pakistan from the Taftan border carries up to 60t of cement. A transporter issues two different weight loads receipts, one for the customs department and another one for freight purposes. The APCMA said that if taxes are fully paid, the price of Iranian cement is equal to that of domestic cement.

Pakistani cement manufacturers dispatched 2.49Mt of cement in May 2015 compared to 2.3Mt in May 2014, up by 8%. Cement sales were 25.5Mt in the 11 months that ended on 31 May 2015, compared to 23.6Mt in the corresponding 2013 – 2014 period, depicting over 8% growth.

Pakistan/Iran: The All Pakistan Cement Manufacturers Association (APCMA) has condemned the illegal import of cement from Iran and tax evasions at the import stage by misdeclaration, which is seriously affecting Pakistan's cement industry. The APCMA has urged the government to stop the trade immediately.

An APCMA spokesman said that the quantity of cement being imported from Iran has been found understated on the Customs Goods Declaration form, resulting in a substantial loss to the national exchequer. This is done via the collusion of dealers with Customs departments officials and transporters. Not all of the necessary tax is being paid on Iranian cement imports.

"At present, the country's surplus cement production capacity is more than 20Mt/yr and it is coming under further pressure because of the illegal imports of cement. It is not only damaging the local industry, but also through misdeclaration it is giving a substantial loss to the national exchequer," said the APCMA spokesman. He urged the government to include cement in a negative list of import items so that the country's surplus production capacity could be used to the maximum. "This would help to increase economic growth in the country and will also curb malpractices at different levels."

Pakistan: Cement sales grew by 8.9% to 8.2Mt during the first four months of the current Pakistani fiscal year, according to data from the All Pakistan Cement Manufacturers Association (APCMA). In July to October 2014, exports of cement decreased by 4.4% to 2.8Mt.

Cement factories in the north of Pakistan despatched 6.9Mt to the domestic market during the four month period, 10.4% more than the same period of last fiscal. Exports from the north dropped by 12.3% to 1.7Mt. Cement factories in the south sold 1.3Mt, 1.4% more than in the same period of 2013. Exports from this region, however, rose by 12.5% to 1.0Mt.

Pakistan: Muhammad Ali Tabba of Lucky Cement Company has been unanimously elected Chairman of the All Pakistan Cement Manufacturers Association (APCMA) for the 2013 – 2014 term. Sayeed Tariq Saigol of Maple Leaf Cement and Babar Bashir Nawaz of Attock Cement Pakistan were also unanimously elected as Senior Vice Chairman and Vice Chairmen of the association respectively.

Muhammad Raza Mansha of DG Khan Cement, Azam Farooque of Cherat Cement, Major General Rehmat Khan (retired) of Lafarge Cement Pakistan, Lieutenant General Muhammad Sabir (retired) of Fauji Cement, Lieutenant General Taufiq Rafiq (retired) of Askari Cement, Syed Asif Shah of Bestway Cement, Aizaz Mansoor Sheikh of Kohat Cement, Mazhar Iqbal of Pioneer Cement and Muhammad Tousif Paracha of Gharibwal Cement were elected as members of the executive committee.

Pakistan: Cement exports from Pakistan have fallen by 5.28% to 4.22Mt, according to figures on the first six months of the 2012-2013 financial year from the All Pakistan Cement Manufacturers Association (APCMA). However domestic cement sales increased by 7.61% to 11.7Mt in the same period. The Pakistan financial year runs from 1 July until 30 June.

A statement from the APCMA revealed that cement plants in the south of the country grew by 7.98% in the local market but posted even higher declines of 16.3% for exports. In the north, where the majority of the country's cement capacity of located, the industry posted a growth of 7.52% in domestic sales whilst exports declined by 1.31%.

The APCMA added that hype created on trade with India has so far not materialised and export in that market was only 0.209Mt during the last six months, a decline of 40.41% and a result well below the expectation of the cement sector. The APCMA spokesman blamed 'stringent non tariff barriers' from India.

During the last six months, the adjacent Afghanistan market remained stable and cement sector exported 2.41Mt. Exports to other destination through sea excluding India also remained stable in comparison with the last six months of 2011-12.

Pakistan: Iranian cement is being sold informally in Quetta and other parts of Balochistan at below the price of locally-produced cement. A cement producer quoted by the Pakistani newspaper Dawn said that Iranian cement was selling up to 30% below the price of locally-produced cement.

The producer added that cement smuggled from Iran started arriving in Pakistan in early November 2012. The local industry pays US$15.5/t of cement on federal excise duty and sales tax. No duties are paid on the illegally-imported cement from Iran.

The All Pakistan Cement Manufacturers Association (APCMA) chairman Aizaz Mansoor Sheikh said that his members are performing quality check on Iranian cement. The APCMA also intends to raise the issue with the Pakistan government.

Keeping in view the production capacity of local cement manufacturers, he said the APCMA would take up the matter with the government besides suggesting imposition of import duty to safeguard the local industry.

Iraq and Afghanistan are two principal markets for cement export from Pakistan, constituting 50% of the country's total exports of 9Mt/yr. Annual exports to South Africa and India are 800,000t/yr and 600,000t/yr respectively. Due to US sanctions on Iran and devaluation of Iranian currency, surplus Iranian capacity has posed direct threat to Pakistani cement in these two markets.

At the inauguration of a cement plant in the Esfahan's Na'in Township on 4 December 2012 Iranian president Mahmoud Ahmadinejad placed his country's cement production capacity at 86Mt/yr. Iran produced 66Mt in 2011 and after international economic sanctions its local capacity utilisation is estimated to be 50%. Iran plans to export 12Mt of cement in the current calendar year.

Pakistan: The Pakistan Railways, Custom authorities and All Pakistan Cement Manufactures Association (APCMA) have decided to tighten security arrangements at the border with India following reports that heroin has been smuggled into India disguised as cement exports from Pakistan. The decision was made during a meeting between the three organisations.

Indian custom authorities have caught heroin from Pakistan cement four times within the last few months, according to APCMA sources. Proposed measures to improve security have included deploying more custom officials at the loading stations, further checks by officials and special locks for railway bogies.

According to the APCMA, despite increased demand for cement in India, exports from Pakistan have declined by 15.7% so far in 2011. Pakistan Railways have commented that the decision to tighten security arrangements at the border have been taken to save the country from 'defamation'.

Pakistan: The All Pakistan Cement Manufacturers Association (APCMA) has re-elected Aizaz Mansoor Sheikh unanimously as its at its Annual General Meeting held at APCMA Secretariat, Lahore. Names of the other elected office-bearers for the year 2012-13 were also announced at the meeting.

A statement issued by APCMA said that Sayeed Tariq Saigol of Maple Leaf Cement Factory and Muhammad Ali Tabba of Lucky Cement were also unanimously re-elected as Vice Chairmen of the Association.

Aizaz Mansoor Sheikh of Kohat Cement Company has served as Chairman of the APCMA for eight years since 1992. The current term 2012-13 is his second consecutive term as Chairman APCMA.

M Raza Mansha of DG Khan Cement, Amer Faruque of Cherat Cement, Rehmat Khan of Lafarge Cement Pakista, M Sabir of Fauji Cemen, Asmat Ullah Khan Niazi of Askari Cement, Syed Asif Shah of Bestway Cement, Babar Bashir Nawaz of Attock Cement Pakistan, Mazhar Iqbal of Pioneer Cement, M Tousif Paracha of Gharibwal Cement were elected as Members of the Executive Committee.

Prominent industry issues discussed at the meeting included were the non-availability of railways wagons for export to India, high diesel rates and its consequential effects on the high input costs that the industry is confronted with.

Pakistan: The Pakistan cement industry despatched 7.71Mt in the first three months of the Pakistan fiscal year that started on 1 July 2012, according to a statement from the All Pakistan Cement Manufacturers Association (APCMA). This compares to 7.50Mt in the same period in the 2011-2012 year.

Local demand increased during the quarter by 5.3% but a decline in exports by 2.68% reduced the overall gain in despatches to 2.81%. In September 2012 plants in north of the country despatched 1.50Mt of cement for the domestic market and exported 0.63Mt. Mills in the south despatched 0.29Mt of cement for the domestic market and exported 0.18Mt.

The statement went on to explain that the total production capacity of the Pakistan cement industry had increased to 44.8Mt but that low capacity utilisation is acutely more 'painful' for those units that have increased their capacity in recent years. Servicing debt has now become a major component of cost, even after three interest rates cuts since April 2012, as the effective bank mark-up for the industry remains above 12%. APCMA appealed to planners to provide some industry-specific interest rebate to the cement industry to keep it afloat.

With the Pakistan cement industry operating at 68.86% of its installed capacity, industry circles are worried by the stagnant domestic demand and continuously declining exports that is hurting the viability of the industry.

"Exports to India have been on constant decline ever since the two countries opened their borders for liberal bilateral trade. The decline is not due to lack of cement demand in India but because of very stringent non-tariff barriers erected by our neighbour," the statement said.