LAHORE - The cement dispatches for the month of Sep 2018 are expected to jump by 13 percent annually, rising to 3.6 million tons from 3.2 million tons in the same month last year.

According to the industry experts, growth in dispatches is expected on the back of robust growth in the south region, where dispatches are expected to grow by a mammoth 94 percent YoY, more than compensating for lackluster performance in the North (expected down 3 percent YoY).

Analyzing the numbers further, they said that South-based exports are expected to skyrocket by 351 percent YoY, compared to 39 percent YoY growth in local dispatches, while local and export sales for North-based players are expected to drop by 2% YoY and 13% YoY respectively during the month. Experts believe south based sales to improve due to major plants coming online in quick succession, with the most recent being DG Khan Cement’s (DGKC) Hub plant, which is cannibalizing sales of the company’s own northern operations.

Gauging their forecasted dispatches by company, experts said that Attock Cement (ACPL) could potentially record highest percentage growth owing to a lower base, with dispatches projected to improve by 116% YoY, followed by 28% YoY and 21% YoY for DGKC and Lucky Cement (LUCK), respectively.

Note these companies are the ones with new plant additions in the south, where exports are overwhelmingly expected to be the reason for growth in dispatches for the three companies, cumulatively expected to grow by 219% YoY, compared to a mere 9% YoY growth expected in local sales. They said that some of the rise in exports for these companies is expected from tapping new markets.