Lower Coal Prices May Solve Low Cement Demand

Lower Coal Prices May Solve Low Cement Demand

Lower Coal Prices Solve coal is a crucial raw material for cement manufacturers, falling coal prices may help lessen the impact of Pakistan’s slow cement demand.Cement deliveries for October 2022 totaled 4.2 million tonnes (-19% YoY), bringing the total for 4MFY23 to 13.9 million tonnes (down 23%) YoY due to a slowdown in construction operations and the effects of floods, according to a research by JS Global.

Lower Coal Prices May Solve Low Cement Demand

Since coal is the main raw material us to make cement. The trend in declin international coal prices  advantageou for . The industry and is likely to somewhat offset the effect of weak demand. From its peak of $360 per tonne in early September 2022. The price quote for Richard Bay coal has dropped by half to about $185 per tonne.

Given the sharp decline in coal prices. The cement industry will probably remain in the public eye in the upcoming months. However negative effects brought on by cement manufacturers’ ongoing capacity expansions continue to be a major concern.

4.2 million tonne of cement were dispatch in October 2022 compar to 5.2 million tonne duri the same period last year. a 19 percent YoY decline. Monthly dispatche remain unchang. Due to a slowdown in construction operations and.  The aftermath of floods, total dispatches for 4MFY23 came in at 13.9 million tonnes. A fall of 23% YoY. For the month of October 2022.  Local dispatches for the Northern area were 3.1 million tonnes, a fall of 18% YoY.

The region’s exports improved and increased by 79 percent year over year. During the month, local dispatches for the Southern region totaled 746,000 tonnes, a 3 percent YoY decline. A significant portion of the region’s total exports, cement, have decreased significantly over the past few months, falling by 57 percent year over year in October 2022.

Given the sharp decline in coal prices, the cement industry will probably remain in the public eye in. The upcoming months. However, negative effects brought on by cement manufacturers’ ongoing capacity expansions continue to be a major concern.

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4.2 million tonnes of cement were dispatched in October 2022 compared to 5.2 million tonnes during the same period last year. 19 percent YoY decline. Monthly dispatches remained unchanged. Due to a slowdown in construction operations and. the aftermath of floods. Total dispatches for 4MFY23 came in at 13.9 million tonnes, a fall of 23% YoY. For the month of October 2022. local dispatches for the Northern area were 3.1 million tonnes, a fall of 18% YoY.

Exports from the region improved and grew by 79 percent on a YoY basis. Local dispatches for the Southern region clocked in at 746,000 tons during the month, a 3 percent YoY decrease. Cement exports, which constitute a major chunk of total dispatches from the region, have declined significantly in the last couple of months, witnessing a drop of 57 percent YoY in October 2022.

In spite of the recent drop in the price of Richard Bay coal. Cement manufacturers are expect to perform better on the cost front.Than what was anticipat at the beginning of FY23, more than offsetti the negative effect of weak cement demand. From its peak of $360 per tonne in early September 2022, the aforementioned quote  decreased by roughly 50% to around $185 per tonne today.
The decline in price is probably the result of the commodity  weak demand in Europe, where coal-fired power plant’ stockpile are nearly full and are anticipat to last through the end of the winter season.

 

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