Cement sector loses steam as sales dive 48%

Industry sold 2.04m tons in July 2022 against 3.89m tons last year

LAHORE:

Pakistan’s construction sector seems to be in a difficult situation as the cement industry, considered to be one of the biggest beneficiaries of infrastructure boom, is losing its steam. Domestic sales of the cement sector as well as its exports fell considerably due to slow construction activities in the past month. All Pakistan Cement Manufacturers Association (APCMA) on Tuesday announced that cement dispatches by its members declined 47.7% in the first month of current fiscal year.

Total dispatches during July 2022 were 2.039 million tons against 3.899 million tons in the same month of last fiscal year. According to data released by the APCMA, the industry’s local cement sales stood at 1.88 million tons in July 2022, compared to 3.44 million tons in July 2021, showing a decline of 45.28%. Exports of cement suffered a massive decline of 66.09% as volumes went down from 452,777 tons in July 2021 to 153,517 tons in July 2022. In July 2022, north-based cement mills sold 1.68 million tons, showing a decline of 44.3% against sales of 3.02 million tons in July 2021.

Mills based in the south zone dispatched 352,747 tons of cement to the markets during July 2022, which was 59.53% less than the dispatches of 871,601 tons in July 2021. North zone cement mills sold 1.61 million tons in domestic markets, down 44.11% against 2.89 million tons in July 2021. Mills based in the south dispatched 269,477 tons to local markets during July 2022, which was 51.4% less than the dispatches of 554,442 tons during July 2021.

Exports from the northbased mills declined by 48.2%, as the quantity reduced from 135,618 tons in July 2021 to 70,247 tons in July 2022. Exports from south mills fell by 73.75% to 83,270 tons in July 2022 as opposed to 317,159 tons in the same month of last year. Showing concern over the situation, an APCMA spokesman emphasised that the government needed to address the massive currency devaluation, political uncertainty and deteriorating economy to stabilise the industries. “The situation is very alarming and the government must come up with a solution to bring the country out of the crisis,” he said.