Business

July: Cement sales up 12.38% year-on-year

Exports remain almost flat, but domestic dispatches come to the rescue

Our Correspondent August 09, 2016

All Pakistan Cement Manufacturers Association spokesmen said that the exports are on a continuous decline. It witnessed a contraction of 2.84% in 2013-14, 11.57% in 2014-15, and 18.38% in 2015-16. PHOTO: REUTERS

LAHORE: Cement sales to domestic markets showed a healthy increase of 12.38% during July, amounting to 2.018 million tons compared to 1.8 million tons during the same month last year.

However, exports remained almost flat during July, 2016, clocking in at 465,102 tons against 465,369 tons made during July, 2015 - slight decrease of 0.06%. Total dispatches amounted to 2.483 million tons compared to 2.26 million tons during the same month last year showing an increase of 9.82%.

Healthy off take was observed in domestic dispatches despite heavy rains that adversely affected construction activities in many parts of the country.

Domestic dispatches in the North Zone were 1.667 million tons and 0.351 million tons in the South Zone.

Manufacturing units in the north registered growth both in local dispatches and exports at 9.85% and 11.82%, respectively, while the Southern region units registered 26.15% local growth but faced a decline of 17.02% in exports.

Quantitatively, during July 2016, exports from the Northern zone were 306,000 tons while exports from Southern Zone were 159,000 tons. Exports by sea also substantially reduced to 177,492 tons (-27.43%) during July 2016 against 244,590 tons during July 2015.

All Pakistan Cement Manufacturers Association spokesmen said that the exports are on a continuous decline. It witnessed a contraction of 2.84% in 2013-14, 11.57% in 2014-15, and 18.38% in 2015-16.

‘’The government needs to support the local manufacturers by giving them freight/ transportation subsidy and other incentives to promote exports.”

He said that the influx of smuggled Iranian cement into Balochistan and other coastal areas is another major issue. ‘’Cement industry loses approximately 1 million tons of volume a year due to smuggled Iranian cement,’’ he added.

Published in The Express Tribune, August 10^th, 2016.

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