Pakistan’s cement producers threaten to stop using South African coal

04 December 2014

Cement producers in Pakistan are considering sourcing their coal from Indonesia instead of South Africa.

The move is in response to an on-going investigation initiated by the International Trade Administration Commission (ITAC) on alleged dumping of Portland Cement from Pakistan.

The ITAC intends to finish its investigation by the end of January 2015 with the introduction of a preliminary antidumping duty on import of Pakistan cement in South Africa, according to Pakistan local media. Pakistan’s Ministry of Commerce has also raised the matter with its South African counterpart in the meeting of Joint Trade Commission (JTC) of the two countries in South Africa in November 2014 but so far no consensus has been reached between the two countries.

Industry sources have said that five to six Pakistan-based exporters of cement constitute the biggest buyers of South African coal. Pakistan is the third largest buyer of coal from South Africa after China and India. Local cement makers collectively import 3Mt/yr of coal worth US$240m from South Africa and export around 1.3Mt/yr of cement worth US$120m.

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