Cement dispatches drop by 12.58% in June

Industry calls for policy revisions as domestic demand declines

LAHORE:

Cement dispatches have declined by 12.58% in June 2024, with total dispatches reaching 3.552 million tonnes compared to 4.063 million tonnes in the same month of the previous fiscal year. According to data released by the All Pakistan Cement Manufacturers Association (APCMA), local cement dispatches in June 2024 were 3.079 million tonnes, an 11.69% decrease from June 2023’s 3.487 million tonnes. Export dispatches also fell by 17.95%, from 576,309 tonnes in June 2023 to 472,865 tonnes in June 2024.

North-based cement mills dispatched 2.723 million tonnes in June 2024, showing a decline of 7.71% against the 2.950 million tonnes dispatched in June 2023. South-based mills dispatched 829,582 tonnes in June 2024, a 25.47% decrease from the 1.113 million tonnes dispatched in June 2023.

In domestic markets, North-based mills dispatched 2.614 million tonnes in June 2024, an 8.45% decrease from the 2.855 million tonnes dispatched in June 2023. South-based mills dispatched 465,578 tonnes domestically in June 2024, a 26.34% decline from the 632,093 tonnes dispatched in June 2023.

For the fiscal year ending June 30, 2024, total cement dispatches (domestic and exports) reached 45.291 million tonnes, a 1.60% increase from the 44.579 million tonnes dispatched in the previous fiscal year. Domestic dispatches during this period were 38.181 million tonnes, a 4.58% decrease from the 40.013 million tonnes dispatched last year. Export dispatches saw a significant increase of 55.71%, jumping to 7.110 million tonnes compared to 4.566 million tonnes in the previous fiscal year.

An APCMA spokesperson stressed the importance of the domestic market for the cement industry and called for serious attention from policymakers due to the decline in domestic demand. He highlighted the need to lower duties and taxes on cement. However, the government’s decision to increase excise duty from Rs2,000 per tonne to Rs4,000 per tonne in the 2024-25 budget is likely to dampen demand further. “Cement is not a luxury item but a basic necessity. The government must take measures to reduce construction costs to make it affordable for the masses,” the spokesperson added.