Cement sales grow 11% in January

Sales in southern region of country were lower than exports

LAHORE: The cement sector recorded growth in January 2020 as its total sales increased to 4.074 million tons, up 11.26% from 3.662 million tons in the same month of the previous year.

According to data released by the All Pakistan Cement Manufacturers’ Association (APCMA), domestic consumption of cement rose 5.95% to 3.265 million tons in January 2020 from 3.082 million tons in January 2019.

Exports registered an impressive growth of 39.49% from 0.579 million tons in January 2019 to 0.808 million tons in January 2020.

North-based mills sold 2.684 million tons in the domestic market, almost 11.32% higher than dispatches of 2.371 million tons in the corresponding month of last year.

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

Cement exports by the north-based mills continued to fall with shipments dropping 13.55% to 0.186 million tons in January 2020 compared with 0.215 million tons in January 2019.

However, in the southern region, domestic consumption fell 18.23% from 0.711 million tons in January 2019 to 0.581 million tons in January 2020. Exports, however, surged 70.84% to 0.623 million tons from 0.364 million tons in January 2019.

In the first seven months (Jul-Jan) of current fiscal year 2019-20, cement sales in the country grew 7.15% to 28.824 million tons against 26.90 million tons in the same period of previous year.

Domestic consumption rose only 3.86% to 23.638 million tons, which was 22.759 million tons in the same period of last year. Exports surged over 25.23% to 5.186 million tons from 4.141 million tons in the same period of last year.

Higher cement exports by the south-based mills, when compared with local dispatches, strengthened these mills as their domestic sales dropped in the region by 26.05% from 4.798 million tons in Jul-Jan FY19 to 3.548 million tons in Jul-Jan FY20.

Exports from the south, however, surged 46.18% to 3.579 million tons during the period under review from 2.448 million tons in the same period of last year.

North-based mills sold 20.090 million tons in the domestic market in Jul-Jan FY20, which was 11.85% higher than sales of 17.960 million tons in the corresponding period of the previous fiscal year.

In terms of exports, the north-based mills posted a decline of 5.08% with shipments standing at 1.606 million tons in Jul-Jan FY20 compared with 1.692 million tons in the first seven months of FY19.

“Though the less-than-expected and nominal increase in cement dispatches and a continued decline in local dispatches from the south is worrisome, the increase in exports depicts competitiveness of the industry that has delivered in line with the decline in the rupee value,” said a spokesperson for APCMA.

Domestic cement sales drop 5.5% in Jul-Aug

He appealed to the government to start work on housing schemes and other construction activities as many job opportunities in the cement sector and the construction industry could be created.

At present, annual cement production capacity stands at 69.54 million tons, while domestic sales would be around 41 million tons, leaving a surplus of 28.54 million tons.

“It is imperative that cement consumption goes up to cover the huge surplus and save the industry from collapse,” the spokesperson remarked.

Published in The Express Tribune, February 7^th, 2020.

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