Cement sector weakens with drop in sales

Industry dispatches dip by 6.8% in Sept 2022

LAHORE:

The cement industry, which provides a major construction material, has slowed down as its sales dropped 6.83% in September 2022. Total cement dispatches in the month came in at 4.276 million tons against dispatches of 4.589 million tons in the same month of last year.

According to data released by the All Pakistan Cement Manufacturers Association (APCMA), local cement sales stood at 3.80 million tons in September 2022, compared to 4.01 million tons in September 2021, showing a decline of 5.33%.

Exports of cement recorded a decline of 17.35% as volumes contracted from 571,613 tons in September 2021 to 472,437 tons in September 2022. Overall, in the first three months of current fiscal year, total cement dispatches (domestic and exports) were 9.613 million tons, lower by 25.04% than 12.825 million tons in the corresponding period of last fiscal year.

Domestic dispatches came in at 8.599 million tons in Jul-Sept FY23 against 11.279 million tons in the same period of last year, showing a decline of 23.76%. Export dispatches were 34.44% less than last year as volumes reduced to 1.013 million tons from 1.545 million tons. Domestic sales of northbased mills stood at 7.258 million tons in the first three months of current fiscal year, down by 23.46% against 9.483 million tons in Jul-Sept FY22.

Exports from the north fell 25.53% to 288,712 tons in Jul-Sept FY23 as compared to 387,667 tons in the same period of last year. Total dispatches by the north zone mills contracted by 23.54% to 7.547 million tons in the first quarter of FY23 from 9.871 million tons last year.