Cement demand to increase after reconstruction started in Pakistani flood-hit areas

22:01, August 18, 2010      

Email | Print | Subscribe | Comments | Forum 

Cement demand from Pakistani local markets may increase in current fiscal year in the wake of reconstruction activities in the flood-affected areas where basic infrastructure and hundreds of thousands houses were devastated by flash floods, analyst predicted on Wednesday.

Though the survey of the disaster by the recent continued floods has not been estimated, some investors held that after the floods, reconstruction activities could increase the cement demand from local market.

Furqan Punjani, a sector analyst, feared that the reconstruction would be prolonged due to the nature of the calamity.

"Once reconstruction activities start there would be a significant increase in the demand for cement and this is expected to work well for the cement companies and possibly government will have to ask for extra quantity," said Punjani.

On the other hand, he thinks that total cement sales in FY11 is also likely to remain flat at 34 million tonnes because it has been reported that the government may reduce development expenditures by 50 percent that could affect local cement demand.

Cement sales to get affected in first half of the current fiscal year, prices may go down Apart from lower cement demand during the abnormal rainy season as the recent floods have severely affected the roads and the distribution network.

According to industry sale figures, during the current month of August, cement dispatches have already declined by 30 percent while this trend is expected to continue in coming months.

Once reconstruction begins by the end of this calendar year, prices will be restored. Sales will recover in second half of 2011 (2HFY11) With the United Nations, World Bank and other donor agencies pledging for reconstruction activities, this will bring some relief to the sector in 2HFY11.

According to the World Bank initial estimates, agriculture, housing and infrastructure have witnessed the biggest blow, and until now more than 1 billion U.S. dollars (inclusive of 900 million U.S. dollars WB loan) have been pledged by different agencies.

Source:Xinhua

(Editor:梁军)

  • Do you have anything to say?

双语词典
dictionary

  
Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • Staff members watch a screen showing the blast-off of the Long March-2FT1 carrier rocket loaded with Tiangong-1 unmanned space lab module at Beijing Aerospace Control Center, Sept. 29, 2011. Commander-in-chief of China's manned space program Chang Wanquan announced Thursday night that the launch of Tiangong-1 space lab module was successful. (Xinhua/Wang Shen)
  • Chinese President Hu Jintao watches the launch of Tiangong-1 space lab module at Beijing Aerospace Control Center in Beijing, capital of China, Sept. 29, 2011. Other members of the Standing Committee of the Political Bureau of the Communist Party of China (CPC) Central Committee, including Wu Bangguo, Jia Qinglin, Li Changchun, Xi Jinping, Li Keqiang and Zhou Yongkang, are also present. (Xinhua/Rao Aimin)
  • The graphics shows the launch procedures of the carrier rocket of Tiangong-1 space lab module, Long March-2FT1 on Sept. 29, 2011. (Xinhua/Lu Zhe)
  • Image taken from Beijing Aerospace Control Center shows a Long March-2FT1 carrier rocket loaded with Tiangong-1 unmanned space lab module blasting off from the launch pad at the Jiuquan Satellite Launch Center in northwest China's Gansu Province, Sept. 29, 2011. (Xinhua)
  • On Sept. 28, tourists travel around the Mingshashan Scenic Area in Dunhuang, Gansu province by camel. With the National Day vacation right around the corner, more and more tourists from home and abroad are going to Dunhuang. Riding on a camel, they travel in the desert to enjoy the cities rare form of natural scenery. (Xinhua/Zhang Weixian)
  • Chinese forest armed forces work together with forest firefighters on Sept. 28. (Xinhua/Chai Liren)
Hot Forum Discussion