Cement sales hit historic high in Oct

Demand rises to 4.98m tons against 4.56m tons last year

LAHORE: The cement sector posted a year-on-year increase of 9.19% in sales in October 2019 as dispatches stood at 4.98 million tons, a historic high for a month, compared to 4.56 million tons in October 2018.

The sector had registered an increase in cement sales in September 2019 as well following negative growth in the first two months (July-August) of the current fiscal year 2019-20.

In the northern region, cement sales registered an increase of 15.86% to 3.61 million tons in the domestic market in October 2019 compared to 3.1 million tons in October last year, according to data released by the All Pakistan Cement Manufacturers Association (Apcma). Surprisingly, local cement sales in the northern part were higher than the total cement sales in each of the first two months of the current fiscal year.

However, domestic cement sales in the southern region stood low at just 0.59 million tons in October, down 29.41% against 0.84 million tons in October 2018. Cement exports continued to rise during the month under review with the growth of around 28%, rising from 0.61 million tons in October 2018 to 0.79 million tons in October 2019.

In Pakistan, cement sales rise 11.5% in Sept

Exports from the southern region rose a substantial 48.75% from 0.35 million tons in October 2018 to 0.59 million tons in October 2019 whereas exports from the north grew nominally from 0.26 million tons in October last year to 0.27 million tons this year.

Four-month data

In the first four months of the current fiscal year, cement manufacturers dispatched 16.12 million tons, up 4.53% from 15.42 million tons in the same period of last year.

Domestic sales amounted to 13.31 million tons in July-October 2019, higher by 2.3% from 13.01 million tons in the first four months of the previous year.

Mills situated in the north sold 11.45 million tons in the domestic market, 11.14% higher than 10.3 million tons in the corresponding period of the previous year.

The southern zone sold 1.86 million tons in the domestic market in July-October 2019, which was 31.27% lower than 2.71 million tons in the same period of the previous year.

Domestic cement sales drop 5.5% in Jul-Aug

Exports increased by 16.48% to 2.8 million tons during the period under review as opposed to 2.41 million tons in the same period of last year.

“It is strange that for the first time, the two cement producing regions of the country are depicting opposite trends in domestic consumption of cement,” said an Apcma spokesperson.

“In the previous fiscal year, the domestic demand was stronger in the south while this year, the northern zone has taken the lead.”

He added that the growth provided a much-needed relief but subdued consumption in the southern region was still a major concern.

“Commencement of work on the housing projects announced by the government will have a positive impact on the demand for cement in both the regions and other construction material,” he said. “It will create earning opportunities for both skilled and unskilled labour.”

He appealed to the government to minimise duties and taxes on the cement sector in order to give a further boost to cement consumption.

Published in The Express Tribune, November 3^rd, 2019.

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