Cement despatches witness decline of 14.79% in Jan

Local cement despatches account for 2.967 MT, showing decline of 17.30%

LAHORE:

In a concerning trend, cement despatches experienced a significant dip of 14.79% in January 2024, with total despatches reaching 3.414 million tonnes (MT), down from 4.006 MT during the same period in the last fiscal year.

Data from the All Pakistan Cement Manufacturers Association revealed that local cement despatches in January 2024 accounted for 2.967 MT, showing a considerable decline of 17.30% compared to 3.588 MT in January 2023. However, export despatches saw a rise of 6.82%, increasing from 418,067 tonnes in January 2023 to 446,595 tonnes in January 2024.

Breaking down the geographical contributions, North-based cement mills despatched 2.434 MT cement in January 2024, marking a 15.83% decline compared to 2.892 MT in January 2023. Meanwhile, South-based mills despatched 979,970 tonnes of cement, reflecting a 12.08% reduction from 1.115 MT despatches in January 2023.

In the domestic market, North-based mills despatched 2.385 MT cement in January 2024, down by 16.50% from 2.856 MT in January 2023. South-based mills contributed 582,258 tonnes of cement to local markets during January 2024, a decrease of 20.43% from 731,747 tonnes in January 2023.

Read Cement sector sees 4.6% growth in dispatches

During the first seven months of the current fiscal year, total cement despatches (domestic and exports) stood at 27.296 MT, a 5.92% increase from 25.770 MT during the corresponding period in the last fiscal year. Domestic despatches during this period decreased by 1.79% to 23.196 MT, while export despatches exhibited robust growth of 90.49%, reaching 4.1 MT.

A spokesperson from APCMA raised concerns about the new axle load regime, which significantly reduces the loading capacity of vehicles, leading to operational inefficiencies and increased transportation costs. The association urged the government to review the new axle load regulations promptly, warning of the potential adverse effects on cement prices for domestic consumers and the export sector.

Published in The Express Tribune, February 3^rd, 2024.

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