Cement sales drop 37% in May
Demand falls due to slow construction activity, Eid holidays
LAHORE:
The impact of the construction package announced by the government is yet to be felt as domestic cement demand dipped 37.63% to 2.27 million tons in May 2020 compared to 3.64 million tons in May 2019, the third double-digit monthly decline in the current fiscal year.
Exports decreased 24.81% from 0.483 million tons in May 2019 to 0.363 million tons in May 2020. According to data released by the All Pakistan Cement Manufacturers Association (APCMA), overall cement sales were recorded at 2.63 million tons in May 2020 against 4.12 million tons in the corresponding period of last fiscal year, which showed a decrease of 36.12%.
The decline in sales was mainly attributed to the Covid-19 pandemic, slow activity in Ramazan and the long Eid holidays, which slowed down overall construction activities.
Domestic cement consumption in the north was recorded at 2.001 million tons against 3.05 million tons in May 2019. Consumption in the southern zone declined to 0.269 million tons from 0.589 million tons in May 2019. In the same manner, exports from the northern region declined to 7,520 tons in May 2020 compared with 0.164 million tons in May last year.
From the south, which is the hub of cement exports, there was a nominal increase from 0.319 million tons in May 2019 to 0.356 million tons in May 2020.
In 11 months (July-May) of the current fiscal year, total cement sales came in at 43.189 million tons against 43.327 million tons in the same period of previous fiscal year, posting a decline of 0.32%.
Domestic consumption in July-May FY20 declined 2.72% to 36.13 million tons compared to 37.14 million tons in the corresponding period of previous year. However, exports increased 14.07% to 7.059 million tons in July-May FY20 from 6.188 million tons in July-May FY19.
Domestic sales by north-based mills stood at 30.94 million tons during July-May 2019-20 against 29.61 million tons in the same period of previous year, posting a growth of 4.49%. South-based mills sold 5.18 million tons in the domestic market in first 11 months of the current fiscal year, down 31.09% from 7.53 million tons in the same period of last year.
“The cement sector has been in dire straits for the past few months. It posted a growth of 31% in domestic cement consumption in February this year and after that the decline has been consistent, being 16.69% in March, 18.97% in April and now almost double in May,” said an APCMA spokesperson.
“Progress on the export front has also been gloomy as it posted a growth of over 48% in February, which declined to 5.67% in March, 56.6% in April and 24.81% in May,” he added. “The negative growth is due to the impact of Covid-19 and delay in implementation of public sector development projects.”
Published in The Express Tribune, June 4th, 2020.
The impact of the construction package announced by the government is yet to be felt as domestic cement demand dipped 37.63% to 2.27 million tons in May 2020 compared to 3.64 million tons in May 2019, the third double-digit monthly decline in the current fiscal year.
Exports decreased 24.81% from 0.483 million tons in May 2019 to 0.363 million tons in May 2020. According to data released by the All Pakistan Cement Manufacturers Association (APCMA), overall cement sales were recorded at 2.63 million tons in May 2020 against 4.12 million tons in the corresponding period of last fiscal year, which showed a decrease of 36.12%.
The decline in sales was mainly attributed to the Covid-19 pandemic, slow activity in Ramazan and the long Eid holidays, which slowed down overall construction activities.
Domestic cement consumption in the north was recorded at 2.001 million tons against 3.05 million tons in May 2019. Consumption in the southern zone declined to 0.269 million tons from 0.589 million tons in May 2019. In the same manner, exports from the northern region declined to 7,520 tons in May 2020 compared with 0.164 million tons in May last year.
From the south, which is the hub of cement exports, there was a nominal increase from 0.319 million tons in May 2019 to 0.356 million tons in May 2020.
In 11 months (July-May) of the current fiscal year, total cement sales came in at 43.189 million tons against 43.327 million tons in the same period of previous fiscal year, posting a decline of 0.32%.
Domestic consumption in July-May FY20 declined 2.72% to 36.13 million tons compared to 37.14 million tons in the corresponding period of previous year. However, exports increased 14.07% to 7.059 million tons in July-May FY20 from 6.188 million tons in July-May FY19.
Domestic sales by north-based mills stood at 30.94 million tons during July-May 2019-20 against 29.61 million tons in the same period of previous year, posting a growth of 4.49%. South-based mills sold 5.18 million tons in the domestic market in first 11 months of the current fiscal year, down 31.09% from 7.53 million tons in the same period of last year.
“The cement sector has been in dire straits for the past few months. It posted a growth of 31% in domestic cement consumption in February this year and after that the decline has been consistent, being 16.69% in March, 18.97% in April and now almost double in May,” said an APCMA spokesperson.
“Progress on the export front has also been gloomy as it posted a growth of over 48% in February, which declined to 5.67% in March, 56.6% in April and 24.81% in May,” he added. “The negative growth is due to the impact of Covid-19 and delay in implementation of public sector development projects.”
Published in The Express Tribune, June 4th, 2020.