Pakistan cement off take up 37%YoY

Local cement dispatches for the month of August 2021 were reported at 3.8 million tons, up 37%YoY and 11%MoM where low base effect played its part as COVID-19 related restrictions kept the base low for August 2020, while for July 2021, low number of working days due to Eid holidays played a part.  Overall 8MCY21 local dispatches increased by 21%YoY to 32 million tons exports increased by 8%YoY taking total dispatches for 8MCY21 to 37 million tons, up 19%YoY.  A number of factors have converged to send coal prices to a 10 year high.  Decreasing gas prices in Europe provided hope of a decline in coal prices. Hurricane Ida has caused a storm in energy markets, adversely affecting LNG supply hence pushing coal prices even higher.  Even though sector has remained under pressure recently due to increasing coal prices, analysts expect the sector to come back into limelight in 2QFY22.

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