Cement demand contracts 16.5% in April

Industry sold 2.9m tons as compared to 3.5m tons last year

LAHORE:

The cement industry is persistently going through tough times as its sales contracted 16.55% in April 2023, reaching 2.951 million tons as compared to 3.536 million tons in the same month of last year.

According to data released by the All Pakistan Cement Manufacturers Association, the industry sold 2.531 million tons of cement in the domestic market during April 2023 compared to April 2022 sales of 3.380 million tons, showing a decline of 25.13%.

However, exports surged by 168.61% as volumes increased from last year’s 156,613 tons to 420,677 tons in April 2023.

In April this year, north zone mills dispatched 2.193 million tons of cement to the market, down 23.54% against 2.868 million tons in April last year.

Sales of south-based mills, however, improved to 0.758 million tons, which were 13.44% higher than dispatches of 0.669 million tons last year.

Sales of north-based mills in the domestic market registered a 24.85% decline at 2.109 million tons against 2.806 million tons in April 2022.

Southern mills supplied 422,071 tons to local markets, which were 26.47% less than dispatches of 573,975 tons last year.

Exports from north-based mills jumped by 35.93% as volumes rose from 61,971 tons in April 2022 to 84,238 tons in April 2023. Exports of southern mills surged by 255.49% to 336,439 tons from last year’s 94,642 tons.

Cumulatively, in the first 10 months (Jul-Apr) of current fiscal year, the industry registered total cement sales (domestic and export) of 36.551 million tons, 17.50% lower than sales of 44.306 million tons in the corresponding period of last fiscal year.

Domestic dispatches during the 10-month period stood at 33.095 million tons against 39.506 million tons in the same period of last year, showing a reduction of 16.23%.

Exports were 27.99% lower with volumes going down to 3.456 million tons in Jul-Apr FY23 compared to 4.80 million tons exported in the corresponding period of last year.

Domestic sales by north-based mills were recorded at 27.157 million tons in 10 months of FY23, a decline of 17.06% than dispatches of 32.743 million tons during Jul-Apr FY22.

On the contrary, exports from north-based mills rose by 16.35% to 862,675 tons during Jul-Apr FY23, compared with 741,452 tons in the same period of last year.

Overall, the mills based in the north witnessed a fall of 16.32% in their sales that reached 28.019 million tons in 10 months from last year’s 33.485 million tons.

South-based mills sold 5.938 million tons in domestic markets during Jul-Apr FY23, a fall of 12.19% over 6.763 million tons dispatched during the same period of last year.

Similarly, exports of south-based mills declined by 36.09% to 2.593 million tons compared with 4.058 million tons exported during the same period of previous year.

Overall dispatches of southern mills decreased by 21.15% to 8.532 million tons .

 

Published in The Express Tribune, May 4^th, 2023.

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