The country’s cement sector which incurred heavy losses in the 3QFY20 has urged the government to reduce the federal sales tax from 17pc to 15pc in the upcoming federal budget.
Pakistan cement manufacturers on Wednesday increased cement wholesale prices by upto Rs55/bag (or $0.375) in northern region (Punjab and Khyber Pakhtunkhwa), cement dealers confirmed to The News.
The coronavirus outbreak had a negative impact on Anhui Conch Cement's business operations in 1Q2020, but the company expects only a marginal -1.5% YoY decline in FY2020 cement and clinker sales volumes. Furthermore, cement prices in China seemed to have stabilised in the past few weeks and national average cement inventory levels have come down to more reasonable levels as well. The Chinese cement sector is a potential beneficiary of policy tailwinds, as the Chinese government could attempt to boost the economy with increased infrastructure spending to partially offset the negative economic impact of the coronavirus outbreak. Anhui Conch Cement is better-positioned than its peers to weather the current storm because its operations are focused in Eastern and Southern China where supply-demand dynamics are more favourable, and the company has a strong financial position with net cash accounting for about a fifth of its market capitalisation.
Tajik cement producers achieved volumes of 564,000t in January-February 2020, up by 20% from 469,000t in the first two months of 2019. This corresponds to capacity utilisation by the country’s 13 producers (total capacity 4.7Mt/yr) of 72% so far in 2020.
Portland cement prices fell by a marginal 2.5% in March compared to February, according to a Central Administration of Needs and Building Materials report.