Cement sales grow 5.8% to 20.5m tons in Jul-Nov

Association official expects demand to reach 49m tons in FY20

LAHORE: Domestic cement sales stood at 16.85 million tons in first five months of the current fiscal year (July-November), posting 2.91% growth year-on-year while cement exports grew 21.46% to 3.61 million tons.

According to data released by the All Pakistan Cement Manufacturers Association (Apcma), overall cement sales in the Jul-Nov period rose 5.76% to 20.46 million tons compared to the same period of previous year.

Domestic consumption in the northern region came in at 14.43 million tons, 11.32% higher than last year. Exports from this region were recorded at 1.2 million tons, lower by 2.89% compared to the same period of previous year.

On the other hand, the southern region depicted a completely different picture where domestic cement sales fell 29% to 2.42 million. Exports from the region rose 39.16% to 2.39 million tons. In November 2019, cement sales in the domestic market grew 5.11% to 3.54 million tons on a year-on-year basis while exports soared 43.53% to 0.81 million tons. Cumulatively, cement sales grew 10.61% to 4.35 million tons.

Cement mills based in northern part of the country sold 3.24 million tons while those in the south supplied 1.11 million tons of clinker and cement.

Domestic consumption in the north was calculated at 2.98 million tons in November while exports came in at 0.26 million tons.

In the southern region, the domestic consumption was recorded at 0.56 million tons and exports stood at 0.54 million tons.

An Apcma spokesperson pointed out that the cement industry was sitting on a massive unutilised production capacity as it managed to sell 46.88 million tons last year against total installed capacity of 59.65 million tons.

He anticipated that total cement demand would reach 49.11 million tons this year. This meant “10.54 million tons of capacity will remain unutilised.”

The spokesperson urged the government to help enhance cement consumption by replacing bricks with concrete blocks.

Such a move, he added, would largely resolve the smog problem, which was currently enveloping central Punjab and had forced the government to close brick kilns in winter in order to control the situation.

“The government should start work on the announced housing projects as it will positively impact the demand for construction material including cement and will also create jobs for the skilled and unskilled labour,” he said.

Published in The Express Tribune, December 5^th, 2019.

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