Cement sales decline by 24.19% in March 2023

APCMA blames political noise, economic uncertainty for situation

LAHORE:

The cement industry in Pakistan is facing challenging times as it witnessed a sharp decline in despatches in March 2023. According to data released by the All-Pakistan Cement Manufacturers Association (APCMA), total cement despatches during the month were 3.795 million tonnes, down by 24.19% from 5.006 million tonnes despatched during the same month of the previous year.

The decline in local cement despatches was even more significant, with a drop of 28.75% from 4.710 million tonnes in March 2022 to 3.356 million tonnes in March 2023. However, there was a silver lining in the form of increased export despatches, which rose by 48.46% from 295,321 tonnes to 438,433 tonnes during the same period.

The northern region of Pakistan witnessed a decline of 28.22% in cement despatches, while the southern region witnessed a drop of 9.48%. Domestic despatches by north-based cement mills were down by 29.33%, while those by south-based mills dropped by 26.14%.

Exports from north-based mills increased by 24.63% to 100,431 tonnes, and those from south-based mills rose by 57.40% to 338,002 tonnes.

During the first nine months of the current fiscal year, total cement despatches were 17.59% lower than the corresponding period of the previous year. Domestic despatches were down by 15.40%, while export despatches fell by 34.62%.

The APCMA spokesperson blamed the decline on a decrease in construction activities in both the northern and southern regions of the country, which is also affecting employment opportunities for skilled and unskilled labour. He added that continued political instability, currency devaluation, and poor economic conditions are adversely affecting all industrial sectors, including cement.

Published in The Express Tribune, April 5^th, 2023.

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