Cement dispatches surge by 37.04% in August

Total shipments reach 4.518 million tonnes, up from 3.297 million tonnes

LAHORE:

The cement industry witnessed a 37.04% surge in dispatches during August 2023, with total shipments reaching 4.518 million tonnes, up from 3.297 million tonnes in the same month the previous year.

The data, released by the All Pakistan Cement Manufacturers Association (APCMA), highlights that a significant driver of this growth was the local market, where cement dispatches soared by 30.38%, reaching 3.793 million tonnes in August 2023 compared to 2.909 million tonnes in August 2022. Simultaneously, exports surged by an impressive 87.07%, with volumes growing from 387,440 tonnes in August 2022 to a substantial 724,777 tonnes in August 2023.

Northern cement mills dispatched 3.252 million tonnes in August 2023, marking a 25.28% increase from the 2.596 million tonnes dispatched in August 2022. In the southern region, mills dispatched 1.265 million tonnes of cement during August 2023, representing a remarkable 80.63% rise compared to the 700,436 tonnes in August 2022.

Exports from northern-based mills increased by 78.54%, escalating from 91,963 tonnes in August 2022 to 164,195 tonnes in August 2023. Similarly, southern mills reported a significant increase, with exports surging by 89.72% to 560,582 tonnes in August 2023, up from 295,477 tonnes during the same month in the previous year.

The first two months of the current fiscal year were marked by exceptional growth, with total cement dispatches, including domestic and exports, reaching 7.747 million tonnes, reflecting a 45.17% increase from the 5.337 million tonnes dispatched during the corresponding period in the previous fiscal year. Domestically, dispatches surged to 6.573 million tonnes, a 37.05% increase from the 4.796 million tonnes during the same period last year. Export dispatches also thrived, skyrocketing by 117.13%, with volumes reaching 1.175 million tonnes during the first two months of the current fiscal year, up from 540,957 tonnes in the previous fiscal year.

Northern-based mills dispatched 5.440 million tonnes domestically during the first two months of the current fiscal year, representing a robust 32% increase from the 4.121 million tonnes dispatched during July-August 2022. Northern exports also flourished, with a 76.32% increase, reaching 286,009 tonnes during July-August 2023, compared to 162,210 tonnes in the same period last year. In the southern region, domestic dispatches for July-August 2023 amounted to 1.132 million tonnes, an impressive 67.91% increase from the 674,436 tonnes dispatched during the same period in the previous fiscal year. Exports from the South also soared, increasing by 134.61% to 888,559 tonnes during July-August 2023, compared to 378,747 tonnes in the same period last year.

An APCMA spokesperson emphasised the industry’s challenges, including rapid currency depreciation, soaring petroleum prices, and rising electricity tariffs. These factors are driving up production costs and affecting transportation, potentially impacting consumer prices. The spokesperson urged the government to address these issues to support the industry as it navigates this challenging terrain.

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

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