Consumption falls: Most cement makers suffer losses

80% of them suffered losses on the back of stagnant local consumption and non-payment of inland freight subsidy

KARACHI: The fiscal year 2010-11, which ended on June 30, proved to be a nightmare for cement plants as 80 per cent of them suffered losses on the back of stagnant local consumption and non-payment of inland freight subsidy, say cement manufacturers. The All Pakistan Cement Manufacturers Association (APCMA), in an announcement on Monday, said cement consumption declined by 8 per cent in 2010-11 as compared to the previous year. Cement sales for 2010-11 revealed that capacity utilisation of the industry dropped to its lowest at 76 per cent in the past eight years with total dispatches declining by 7 per cent to 21.97 million tons, down from 23.55 million tons in 2009-10.

Published in The Express Tribune, July 5^th, 2011.