Cement sales decline by 3.96% in September

Total despatches reach 4.115 million tonnes, down from 4.284 million tonnes last year

LAHORE:

Cement despatches in Pakistan took a dip by 3.96% in September 2023, with total despatches reaching 4.115 million tonnes compared to the 4.284 million tonnes dispatched during the same month in the previous fiscal year, as per data released by the All Pakistan Cement Manufacturers Association (APCMA).

Local cement despatches during September 2023 amounted to 3.544 million tonnes, reflecting a 6.87% decline from the 3.806 million tonnes in September 2022.

On a brighter note, exports saw a notable increase of 19.24%, with volumes rising from 478,097 tonnes in September 2022 to 570,101 tonnes in September 2023.

Breaking it down by region, North-based cement mills dispatched 3.035 million tonnes of cement, marking a 7.00% decrease from the 3.264 million tonnes dispatched in September 2022. Meanwhile, South-based mills dispatched 1.079 million tonnes of cement, representing a 5.79% increase compared to the despatches of 1.020 million tonnes in September 2022.

In the domestic market, in September 2023, North-based cement mills dispatched 2.893 million tonnes, showing a decline of 7.79% from 3.137 million tonnes in September 2022. South-based mills, on the other hand, dispatched 651,287 tonnes of cement locally, which was 2.58% less than the 668,512 tonnes dispatched during September 2022.

Exports from North-based mills increased by 12.43%, rising from 126,502 tonnes in September 2022 to 142,226 tonnes in September 2023. Meanwhile, exports from South-based mills increased by 21.70%, reaching 427,875 tonnes from 351,595 tonnes during the same period last year.

For the first quarter of the current fiscal year, total cement despatches, including domestic and exports, reached 11.873 million tonnes, marking a 23.40% increase from the 9.621 million tonnes dispatched during the same period of the previous fiscal year. Domestic despatches during this period were 10.122 million tonnes, reflecting a 17.67% increase from 8.602 million tonnes during the same period last year. Export despatches also surged by 71.79%, with volumes increasing to 1.751 million tonnes during the first three months of the current fiscal year compared to 1.019 million tonnes during the same period last fiscal year.

An APCMA spokesperson emphasised the industry’s potential to capture export markets if the government provides relief in duties and taxes to reduce production costs and make Pakistani cement more competitive internationally. The spokesperson also expressed concerns about rising power tariffs and petroleum prices.

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

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