Updated Dec 10, 2022 19:08

Clay Market in Pakistan

Market Overview
The Pakistani clay market rose remarkably to $ in , surging by % against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). Overall, the total consumption indicated a modest increase from 2007 to : its value increased at an average annual rate of +% over the last fourteen years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on figures, consumption decreased by -% against 2019 indices. Over the period under review, the market attained the peak level at $ in 2019; however, from to , consumption remained at a lower figure.

In value terms, clay production expanded significantly to $ in estimated in export price. In general, the total production indicated modest growth from 2007 to : its value increased at an average annual rate of +% over the last fourteen-year period. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on figures, production decreased by -% against 2019 indices. The pace of growth appeared the most rapid in 2015 with an increase of % against the previous year. Over the period under review, production reached the maximum level at $ in 2019; however, from to , production stood at a somewhat lower figure.


Consumption
Clay consumption in Pakistan totaled tons in , increasing by % compared with figures. In general, consumption posted a measured expansion. Over the period under review, consumption attained the peak volume in and is expected to retain growth in years to come.

The revenue of the clay market in Pakistan rose to $ in , increasing by % against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). Over the period under review, the total consumption indicated a slight increase from 2007 to : its value increased at an average annual rate of +% over the last fifteen-year period. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on figures, consumption increased by +% against indices. Over the period under review, the market reached the peak level at $ in 2019; however, from to , consumption remained at a lower figure.


Consumption by Type
Fireclay ( tons) constituted the product with the largest volume of consumption, accounting for % of total volume. Moreover, fireclay exceeded the figures recorded for the second-largest type, clays for construction and industrial use ( tons), threefold. Bentonite ( tons) ranked third in terms of total consumption with a % share.

From 2007 to , the average annual rate of growth in terms of the volume of fireclay consumptions amounted to +%. With regard to the other consumed products, the following average annual rates of growth were recorded: clays for construction and industrial use (+% per year) and bentonite (+% per year).

In value terms, fireclay ($) led the market, alone. The second position in the ranking was taken by clays for construction and industrial use ($). It was followed by bentonite.

From 2007 to , the average annual rate of growth in terms of the value of fireclay markets stood at +%. With regard to the other consumed products, the following average annual rates of growth were recorded: clays for construction and industrial use (-% per year) and bentonite (+% per year).


Market Forecast
Driven by increasing demand for clay in Pakistan, the market is expected to continue an upward consumption trend over the next eight years. Market performance is forecast to retain its current trend pattern, expanding with an anticipated CAGR of +% for the period from to , which is projected to bring the market volume to tons by the end of .

In value terms, the market is forecast to increase with an anticipated CAGR of +% for the period from to , which is projected to bring the market value to $ (in nominal prices) by the end of .


Market Structure
Over the period under review, imports of clay in Pakistan were negligibly small compared to the production volumes. Therefore, the share of imports in the total market was practically nonexistent, both in volume and in value terms. This situation has remained constant over the period under review, which means that domestic producers entirely meet the domestic demand for clay. In , the share of imports in total consumption accounted for % in value terms and % in physical terms. The share of imports remained relatively constant over the period under review. In , the share of imports in total consumption accounted for % in value terms and % in physical terms. The share of imports decreased moderately (- percentage point) over the period under review.


Trade Balance
Pakistan remains a net importer of clay; in physical and value terms, imports consistently exceeded exports from 2007 to . In , there was a significant trade deficit of tons, which was equal to $.