Feb 2020: Cement sales grow 34% to 4.49m tons in Pakistan
In comparison, 3.35m tons had been consumed in same month of previous year
PHOTO: REUTERS
LAHORE:
The growth in sales of cement sector continued in February as well as total sales grew 33.91% year-on-year to 4.49 million tons.
Cement sales had been recorded at 3.35 million tons in the same month of previous year.
According to data released by the All Pakistan Cement Manufacturers Association (Apcma), domestic consumption of the commodity rose 31.4% to 3.74 million tons in February 2020 compared to 2.84 million tons in February 2019.
On the other hand, cement exports registered an impressive jump of 48.2% from 0.51 million tons in February 2019 to 0.75 million tons in the month under review.
Mills based in the northern region of Pakistan managed to sell 3.17 million tons in the domestic market, which was almost 46% higher than 2.18 million tons in the corresponding month of previous year.
Following the same trend, exports from north-based mills increased 23% to 0.2 million tons in the month under review as opposed to 0.17 million tons in February 2019.
Southern region of the country reported a decline of 16% in domestic cement consumption, which fell from 0.67 million tons in February 2019 to 0.56 million tons in February this year.
Exports from the southern region, however, surged 60% to 0.55 million tons last month compared to 0.34 million tons in February 2019.
Eight-month figures
Cement sales in first eight months of the current fiscal year stood at 33.31 million tons, depicting a growth of over 10% compared to 30.25 million tons in the corresponding period of previous fiscal year.
Domestic consumption in the northern region reached 23.26 million tons in JulFeb FY20, which was 15.53% higher than the 20.14 million tons recorded in the same period of previous fiscal year.
On the other hand, domestic consumption in the southern region registered a decline of 24.81%, falling from 5.47 million tons in Jul-Feb FY19 to 4.11 million tons in Jul-Feb FY20.
“The jump in exports is understandable because it is the result of a huge decline in the rupee value,” remarked an Apcma spokesperson. “Exports from the north remained subdued due to lower demand in Afghanistan and no shipments to India through the Wagah border.”
He added that cement production capacity of the country had risen to 64 million tons in FY20 but the industry was only able to utilise 78.53% of its installed capacity so far while the remaining capacity of over 9.1 million tons was sitting idle.
He appealed to the government to support the industry by minimising duties and taxes on cement in a bid to maintain the momentum of rising consumption.
“The lopsided domestic consumption in northern and southern parts of the country is worrisome as it points to uneven economic activities in different regions of the country,” he added.
The growth in sales of cement sector continued in February as well as total sales grew 33.91% year-on-year to 4.49 million tons.
Cement sales had been recorded at 3.35 million tons in the same month of previous year.
According to data released by the All Pakistan Cement Manufacturers Association (Apcma), domestic consumption of the commodity rose 31.4% to 3.74 million tons in February 2020 compared to 2.84 million tons in February 2019.
On the other hand, cement exports registered an impressive jump of 48.2% from 0.51 million tons in February 2019 to 0.75 million tons in the month under review.
Mills based in the northern region of Pakistan managed to sell 3.17 million tons in the domestic market, which was almost 46% higher than 2.18 million tons in the corresponding month of previous year.
Following the same trend, exports from north-based mills increased 23% to 0.2 million tons in the month under review as opposed to 0.17 million tons in February 2019.
Southern region of the country reported a decline of 16% in domestic cement consumption, which fell from 0.67 million tons in February 2019 to 0.56 million tons in February this year.
Exports from the southern region, however, surged 60% to 0.55 million tons last month compared to 0.34 million tons in February 2019.
Eight-month figures
Cement sales in first eight months of the current fiscal year stood at 33.31 million tons, depicting a growth of over 10% compared to 30.25 million tons in the corresponding period of previous fiscal year.
Domestic consumption in the northern region reached 23.26 million tons in JulFeb FY20, which was 15.53% higher than the 20.14 million tons recorded in the same period of previous fiscal year.
On the other hand, domestic consumption in the southern region registered a decline of 24.81%, falling from 5.47 million tons in Jul-Feb FY19 to 4.11 million tons in Jul-Feb FY20.
“The jump in exports is understandable because it is the result of a huge decline in the rupee value,” remarked an Apcma spokesperson. “Exports from the north remained subdued due to lower demand in Afghanistan and no shipments to India through the Wagah border.”
He added that cement production capacity of the country had risen to 64 million tons in FY20 but the industry was only able to utilise 78.53% of its installed capacity so far while the remaining capacity of over 9.1 million tons was sitting idle.
He appealed to the government to support the industry by minimising duties and taxes on cement in a bid to maintain the momentum of rising consumption.
“The lopsided domestic consumption in northern and southern parts of the country is worrisome as it points to uneven economic activities in different regions of the country,” he added.