Cement exports decline over 50% in April
Domestic demand continues to drive surge in overall consumption.
PHOTO: LUCKY CEMENT
LAHORE:
Cement sales were recorded at 3.576 million tons in April, but exports fell 50.75% compared to shipments made in the same month of previous year.
According to data provided by the All Pakistan Cement Manufacturers Association (APCMA), the industry sold a record 33.88 million tons of cement in the first 10 months of the current financial year. While domestic consumption stood at 29.871 million tons, exports amounted to only 4.01 million tons.
A spokesperson for the APCMA said that the resilience in the domestic market for cement was a good omen for the industry, but it would be unwise to ignore the sharp decline in exports.
"At one time, exports peaked above 10 million tons. This has progressively declined to almost half now," said the spokesperson.
At present, the cement industry is operating on excess capacity and is regularly adding new units to cope with the expected increase in construction activities across the country. Nevertheless, a decline in exports might lead to reduction in new capacity additions in the future.
The spokesperson added that planners had been informed about the impediments to exports and required steps, if taken, could revive exports of the sector.
Similarly, the spokesperson urged the government to increase customs duty on the import of clinker from 10% to 20% in order to support local manufacturers, along with registration of exporters with the Pakistan Standards and Quality Control Authority.
The data revealed that during the July-April period, the domestic consumption of cement surged 10.74% while exports fell 18.63%. Owing to the massive decline in exports, cement sales grew only 6.21%.
Published in The Express Tribune, May 6th, 2017.
Cement sales were recorded at 3.576 million tons in April, but exports fell 50.75% compared to shipments made in the same month of previous year.
According to data provided by the All Pakistan Cement Manufacturers Association (APCMA), the industry sold a record 33.88 million tons of cement in the first 10 months of the current financial year. While domestic consumption stood at 29.871 million tons, exports amounted to only 4.01 million tons.
A spokesperson for the APCMA said that the resilience in the domestic market for cement was a good omen for the industry, but it would be unwise to ignore the sharp decline in exports.
"At one time, exports peaked above 10 million tons. This has progressively declined to almost half now," said the spokesperson.
At present, the cement industry is operating on excess capacity and is regularly adding new units to cope with the expected increase in construction activities across the country. Nevertheless, a decline in exports might lead to reduction in new capacity additions in the future.
The spokesperson added that planners had been informed about the impediments to exports and required steps, if taken, could revive exports of the sector.
Similarly, the spokesperson urged the government to increase customs duty on the import of clinker from 10% to 20% in order to support local manufacturers, along with registration of exporters with the Pakistan Standards and Quality Control Authority.
The data revealed that during the July-April period, the domestic consumption of cement surged 10.74% while exports fell 18.63%. Owing to the massive decline in exports, cement sales grew only 6.21%.
Published in The Express Tribune, May 6th, 2017.