Arsalan Ali

Pakistan has tremendous potential to export high-quality talc by bringing cutting-edge technology to mining and processing, reports WealthPK.

Data from the International Trade Centre (ITC) Trade Map shows that Germany, the United States, Japan, the Netherlands, and Italy are the top five talc importers. The graph shows that Japan has  highest average price as compared to other top importing countries.

Moreover, the top five export countries include the US, China, the Netherlands, France, and Austria.

Talking to WealthPK, Suleman Akram, Research Associate at Trade Development Authority of Pakistan (TDAP), said Pakistan’s exports of talc are far below its true potential. He said that utilizing cutting-edge technology for mining and subsequent processing in accordance with international market standards would boost exports and earn more foreign exchange.

Suleman said China and the US are the largest producers of talc and Pakistan ranks ninth in terms of talc production. He added that the US, China, the Netherlands, and Italy are major talc exporters and Pakistan ranks seventh in the world in terms of talc exports. He said Pakistan has the potential to export talc, and its usage has increased with the passage of time in plastic, ceramic, paint, and cosmetics.

Suleman said global talc exports will exceed $5 billion by 2031, and added that Pakistan’s share of global talc exports is less than 2% due to law and order challenges in talc-producing areas such as Kurram and Khyber tribal districts of Khyber Pakhtunkhwa province.

He added that Pakistan has 600,000-ton talc reserves and the majority of mines are in Khyber Pakhtunkhwa and deposits in Sherwan (Hazara), Swat, Jamrud, Landikotal, Kurram, and Safed Koh.

The latest report of TDAP highlighted that Japan is a potential market for Pakistan. Talc export from Pakistan to Japan was $1.07 million in 2021 as compared to the total talc import of Japan from around the world which stood at $66.391 million. The average import price of talc is $541/ton in Japan, while Pakistan’s export of talc powder to Japan is $356/ton.

It was stated in the report that Pakistan could divert its talc exports to Japan to increase its revenue. This is because the prices of talc exports from Pakistan are relatively low in Japan. By capturing only 10% of the market share, Pakistan can increase revenue by $2.269 million, the report added.

The report pointed out that Germany is the largest importer of talc, and exports from Pakistan is a negligible amount to the European country. The average import price of talc in Germany is $450/ton. Pakistan exports talc to countries that re-export to Germany at a high price. If Pakistan can capture a minimum of 5% market share, it can increase its export revenue by about $3 million, the report said.

Thailand could be a potential export market for Pakistan, according to the report, because it imported 105,000 tonnes of talc in 2021, while Pakistan only exported 3,000 tonnes.

The report said local talc is in a yellowish color and in low demand. However, the international market demands white talc, which can only be achieved by upgrading talc industries through modern techniques.

The report highlighted that Pakistan has a dependence on the import of talc from Afghanistan, and any security issue in Afghanistan affects Pakistan’s talc exports.

Credit : Independent News Pakistan-WealthPk